Post Am7ZSJEs1Ak6d8psm0 by artsyhonker@sonomu.club
 (DIR) More posts by artsyhonker@sonomu.club
 (DIR) Post #Am6mCvFI2wOC7R47c0 by interfluidity@zirk.us
       2024-09-17T22:32:02Z
       
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       [new draft post] Abundance is overcapacity https://drafts.interfluidity.com/2024/09/17/abundance-is-overcapacity/index.html
       
 (DIR) Post #Am7ZSJEs1Ak6d8psm0 by artsyhonker@sonomu.club
       2024-09-18T07:43:51Z
       
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       @interfluidity ...I don't think we currently expect firms to "thrive or die on their own revenues" without any subsidy. We subsidise them through allowing below living wages. We subsidise them through not holding them fully accountable for the costs of environmental damage.
       
 (DIR) Post #Am8XlkFBpeEx8Z5KvQ by kentwillard@zirk.us
       2024-09-18T18:59:40Z
       
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       @interfluidity So as minimum action, the government should keep the cost of investment (interest rates) low, preferably below inflation. The trick is for borrowing to be on investment rather than speculation. However where we have experienced abundance, it was often after a speculative bubble.
       
 (DIR) Post #Am8XtEOo79dMgl9ZKq by kentwillard@zirk.us
       2024-09-18T19:01:02Z
       
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       @interfluidity Another idea is to subsidize C&I loans, perhaps with securitization where the government buys the lower tranches.
       
 (DIR) Post #Am8Yzr4jKWowKfU7Hc by kentwillard@zirk.us
       2024-09-18T19:13:26Z
       
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       @interfluidity I remember that JP Morgan thought competition was terrible because it destroyed profits. He openly encouraged acquisitions and mergers within industries before antitrust was a thing.Perhaps we need an oligopoly surtax. Imagine that as HHI rises, so does the tax rate on (dividends paid + stock buybacks + executive compensation + acquisitions ) (give up on definition of profit). It would be irrelevant for small businesses.
       
 (DIR) Post #Am8eBdJOpMUmtLmWu0 by interfluidity@zirk.us
       2024-09-18T20:11:36Z
       
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       @kentwillard yes. i generally like the idea of taxing to shape market structure. https://www.interfluidity.com/posts/1258156478.shtml
       
 (DIR) Post #Am8eS2LLWrKv9tVwdE by interfluidity@zirk.us
       2024-09-18T20:14:34Z
       
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       @kentwillard for the reasons you suggest (subsidizing speculation, blowing bubbles) i think we want to be careful not to imagine a lending subsidy is a fixed capital subsidy. people do all kinds of stuff with loans, much of which we’d be better off taxing than subsidizing. however we do it, what we want to subsidize is deployment of fixed capital, the fixed cost portion of actual, direct production.
       
 (DIR) Post #Am8yiMV8LfEFOT9c0W by kentwillard@zirk.us
       2024-09-19T00:01:37Z
       
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       @interfluidity Agreed, finance, insurance, & real estate are great at capturing subsidies. We want to subsidize supply rather than demand when possible.