Feel Better:Complain About Anything

Originally posted by picastoc: ↑

"A passive income owner"????

Income can be earned not only by being a workman, like a plumber, but also by forfeiting the use of one's own money for a time period and we are paid interest for this by lending or investing in a venture offered on the stock market, for example, or by offering a service like cleaning, hairdressing, building, etc. and rent if we have a house let out to someone. People want these services and will thus be prepared to pay for them. Thus it is both goods and services which comprise the Gross Domestic Product of our economy.

Demand determines what is supplied within a free enterprise economy/capitalist economy such as that of Australia's.

However, it is not 100% free enterprise economy. There are some government regulations, eg recently threatened caps on gas/electricity prices being charged are being touted by government as possible ways of preventing the extremely high growth in what is being charged customers of private energy suppliers.

There has never been an across-the-board restriction placed on individual consumer expenditure based on age and assets, thus (aged pension access) nor will this ever happen.
To monitor this would be an exorbitantly expensive excerise of enormous magnitude, throwing up all kinds of anomalies, and unfair outcomes. The market is the mechanism which determines what is and how much is produced. This was identified and understood in Adam Smith's famous Wealth of Nations treatise which describes in details how capitalism works with minimal direction from dictators ir gonernments.

Western economies are democratic and market forces predominate. Thank goodness for that.

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I agree with all that. But than COVID happened and that really demonstrated what the government will do when it wants to flex its power.
Simplify the situation, for the low IQ folkers.
A growing 10 person population.
Each contributes evenly.
Suddenly 3 of the 10 decide to contribute to a greater extent to invest that extra effort and hope to stop working sooner or be enable them to live a better quality lifestyle. The other 7 workers are a little put off by this, but they don’t mind too much because they have 3 kids that came into to fill that gap. But now those other 7 workers realised what the 3 other workers did, then they think I’ll do the same.
All of a sudden we are struggling to fill those 10 positions we once had, and the ones that are working are so disengaged with what they are doing because what they are earning also has to pay a yield to the “hard workers” that now sit around drinking beers all day waiting for their free money.
I still sort of think, society is a contribution based system. I think we have messed with the foundations and now that house is coming down.
I don’t see how rare rises will work.
But me only just still figuring out how to peel banana.