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New Post 1/15/2008 7:01 AM
  rundeep
324 posts
3rd Level Poster


In Defense of Entropy 

Interesting.  Focusing on growth is based on a variant of the "greatest good for the greatest number" economic theory. It is, essentially, that if there's a big enough number, it can be shared across classes, providing the greatest good.  This isn't totally insane, really. In theory, an employer that makes more money has more money to give its employees and more money to distribute in dividends to shareholders or to put back into the business, improving the worth of the shareholders interests.  And yeah, I view that as, essentially, good. The problem is that growth has become interesting for its own sake. Meet an expectation and get a bonus.  As the expectations grow, corporate America wants to increase revenue, but not expenses. So employee raises are limited and dividends too (they secretly loved that income tax on dividends. What a great excuse not to pay them).  Another one of the great issues where I get down with the theory but not the practicalities of the situation.

A very profound 5 thoughts, Keith.

 
New Post 1/15/2008 8:51 AM
  Keifus
388 posts
3rd Level Poster




Re: In Defense of Entropy 

Thanks, but I'm definitely going to fire my copy editor.

I wonder if there's not some steady condition that's workable (or maybe that's workable for some other animal than humans).  You know, a lot of energy used to replace things with new and better things, but not assuming we'll always be able to move more and more things.  We need more people to keep moving more things.  How can a company like McDonald's even grow, unless it finds more markets, diversifies, or just if more mouths are generated? 

The way the benefits of growth are distributed (and treated) is another matter too, and I don't think I disagree with you on anything you said.  Dividends sound nice, and I'm sure they're nice for large investors, but in practice, they seem to be dumb from a health-of-the-corporation standpoint (as stupid as massively rewarding the CEO and board while stiffing the employees). 

On the other hand, there's a big fraction of the world population that would arguably be better off consuming (and producing) more and reproducing less.  We're watching that happen now in India and China.  Hope there's enough oil.

 
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