Thursday, October 30, 2014

The Boy who warned of the Beasts of Capitalism


There was once a young leftist Boy who also was a Democratic Socialist, who tended his proles at the foot of a mountain near a dark forest.
It was rather lonely for him all day, so he thought upon a plan by which he could get a little company and some intellectual excitement.
He rushed down towards the village calling out, "beasts, beasts", "the predatory beasts of capitalism is here to devour us all", and the villagers came out to meet him, and some of them stopped with him for a considerable time, debating the future if the current diverging growth patterns for different segments of the population would continue for a long time.

This pleased the boy so much that a few days afterwards he tried the same trick, because he was a real intellectual this philosopher and leftist boy, and again the villagers came to his help.
But this time the leftist boy could bring amounts of evidence and empirical data to his worry, and the villagers began to reflect intellectually, and the boy of course cried out: "the beasts of capitalism are here, they are extracting us", "let us not succumb to the reign of the beasts of rentier capitalism", still louder than before.
And this time the villagers, who had been alarmed just once before, thought the boy was speaking the truth, and they started to come to his help.
So the villagers made a good financial meal off the beasts of capitalism's wealth by taxing them, in the name of the majority probability payoff structure, and when the crowd cheered, the wise man of the village said: a man who walks his scientific paths paved with empirical data will most probably speaketh the truth of empirical economy and the wisdom of political economy.

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Concluding abstract conclusion: Happy economic equilibrium ending, as per Schumpeter's prediction. 

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