The Biggest Global Asset Bubble That Ever Was And Ever Will Be.

Originally posted by Infose: ↑

@Marum

"Economically, I am basically a Keynesian. I hate Government intervention. I am in favour of a "Free Enterprise Capitalist Economy."

How is that possible? Are you on drugs?

"What Is Keynesian Economics?

The central tenet of this school of thought is that government intervention can stabilize the economyJust how important is money? Few would deny that it plays a key role in the economy.During the Great Depression of the 1930s, existing economic theory was unable either to explain the causes of the severe worldwide economic collapse or to provide an adequate public policy solution to jump-start production and employment. British economist John Maynard Keynes spearheaded a revolution in economic thinking that overturned the then-prevailing idea that free markets would automatically provide full employment—that is, that everyone who wanted a job would have one as long as workers were flexible in their wage demands (see box). The main plank of Keynes’s theory, which has come to bear his name, is the assertion that aggregate demand—measured as the sum of spending by households, businesses, and the government—is the most important driving force in an economy. Keynes further asserted that free markets have no self-balancing mechanisms that lead to full employment. Keynesian economists justify government intervention through public policies that aim to achieve full employment and price stability.

https://www.imf.org/external/pubs/ft/fandd/2014/09/basics.htm

Expand

How is that possible? Are you on drugs? Only beer my boy. I know that is a paradox, but I like to keep government to a barest minimum.

A prime example of that which WES and WOW do. There used to be a drinks factory down the road from me. (a friend worked there, that is how I found out) Anyway, one of the big two started buying the cordials the company made, and became a bigger and bigger customer. The drinks factory had to increase its production facilities, because the big retailer was taking the Lion's Share of its production. Then the Chain Store demanded a $3M "stocking fee" to stock their drinks. The upshot was the drinks company said. NO! And closed down. So everyone lost their jobs. Once they have you hooked, they will start telling you what price they will pay, and you will go broke anyhow. WOW and WES do this over and over again. It is gouging your suppliers. They are using their might and muscle to screw a small company. I can personally quote three instances.

It is a pity that the Govt., cannot provide a bureau of economic and business experts, to advise small business of the pros and cons of such deals. Also the litigiousness of such big companies, means that they will sue you if they get a chance, and keep going back to court until you run out of money. Therefore they win, whether you were right or not.

How can a small business compete?....Marum.