Wednesday, November 18, 2009

Public Goods.

Keynesian economics talks a lot about "public goods" and how one person consuming a public good should not prevent another person from consuming that good.

I maintain that all profits should be declared public goods since in most cases apart from a one man company, other people were employed in value creation of the product that is sold. People from raw material extraction to fabrication to sales. Many people were involved in the production of the goods, so any profits must logically be a public good. Therefore profits should be put back into the country by infrastructure improvements, like health care, education, hospitals, communications etc.
With more renewal projects the jobless level falls and there is more money in circulation that is not going into the pockets for the greedy capitalists. Spending money or adding money to a system has a multiplying effect according to Keynes. Therefore the benefits are amplified. However if it stays in the pockets of the greedy then the rest of society receive no benefit from the profit and no benefit from the amplification factor either.

Motto... Outlaw greed!

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