10-14-2010, 05:07 PM
your approach fails at the point that, it assumes the cost and output value of a 'gadget' and a 'bank' and an 'investment' is not already calculated into the system. you are looking into the system from a lower point that its whole. and then saying that it materializes 'out of thin air'. it doesnt.
when the cost and output value of every generated value is produced, and entities ask profit over it, you end up with the situation i described above.
the exact nature of the percentages in the system, has no relevance to its output. the system may be producing more, through either working hard, or employing gadgets or any other means. it means that the people who are employing the gadgets and banks you speak of in your example, are producing more and making up for the asked profit. even if you give the gadget to everyone else.
this ends up in the situation that i describe as the system having to create more, to make up for the profit everyone asks. a self reinforcing spiral. it doesnt matter how its done -> when the entire system asks for more than the entire system has produced, either more has to be created, or someone has to pay it from outside the system into it.
when the cost and output value of every generated value is produced, and entities ask profit over it, you end up with the situation i described above.
the exact nature of the percentages in the system, has no relevance to its output. the system may be producing more, through either working hard, or employing gadgets or any other means. it means that the people who are employing the gadgets and banks you speak of in your example, are producing more and making up for the asked profit. even if you give the gadget to everyone else.
this ends up in the situation that i describe as the system having to create more, to make up for the profit everyone asks. a self reinforcing spiral. it doesnt matter how its done -> when the entire system asks for more than the entire system has produced, either more has to be created, or someone has to pay it from outside the system into it.