Show less interest - References and quotes
Philosophy
2021
REFERENCES AND QUOTES
ECOLOGICAL ECONOMICS – PRINCIPLES AND APPLICATIONSInterest rate, discount rate, opportunity cost and how it requires money to be thought of as substitutable to anything. SeeTHE ENTROPY LAW AND THE ECONOMIC PROCESS IN RETROSPECT 13 190 Growth rates of natural resources vs interest rate. Goodbye goose and fecundity of money. 219 NPV, interest rates and disappearing biodiversity 220 50 hammers in use value vs exchange value. Diamond and water paradox. Exchange value is determined by marginal utility. Use value is determined by total utility. Production for use value is self-limiting, not production for exchange value. 50 hammers in use values rust but 50 hammers in exchange value, money, do not. “Since there is no limit to the accumulation of abstract exchange value, and since abstract exchange value is convertible into concrete use value, we seem to have concluded that there must not be any limit to concrete use values either. This has perhaps led to the notion that exponential growth, the law of money growing in the bank at compound interest, is also the law of growth of the real, or material, economy.” See Dougnut Economy on interest and demurrage, THINKING IN SYSTEMS – A PRIMER on interest as idea 287 Soddy on wealth and money as claim to wealth, as debt, negative wealth. Soddy 1926, “you can’t permanently pit an absurd human convention, such as the spontaneous increment of debt (compound), against the natural law of the spontaneous decrement of wealth (entropy)”. Virtual wealth is physical real assets debt. 288 Difference between money and currency. Growth built into the money system where banks create money through loans with interest! SeeDOUGHNUT ECONOMICS: SEVEN WAYS TO THINK LIKE A 21ST-CENTURY ECONOMIST, Tony Greenham https://www.youtube.com/watch?v=a2KgrpFRHJI on moneyand money as social relations 290 Intertemporal discounting, See 181, 245. Pure time rate of preference, opportunity cost (PTRP). The richer future argument, will we really have a richer future? 315 Box 15.2 Saving a forest depends on discount rate and if so are they really objective tools? 316, 317 Social discount rate. Arguments against discount rates. 1. “the real value of money can only grow if the production of goods and services that money can acquire also grows , and we know that the productions of goods and services cannot grow forever on a finite planet” therefore social discount rate may be inappropriate. 2. We also ignorance of cost of production. 2. future might be poorer not richer 3. Diminishing marginal returns on investment. 4. Technology complements resources not replaces and prices of natural resources will increase as they become scarce. SeeTHE ENTROPY LAW AND THE ECONOMIC PROCESS IN RETROSPECT 13, TURNING POINT: THE END OF EXPONENTIAL GROWTH? on exergy into useful work as the driver of growth1192 317-319 I PROSPERITY WITHOUT GROWTHInterest could be possible in steady state economy. 193 I DOUGHNUT ECONOMICS: SEVEN WAYS TO THINK LIKE A 21ST-CENTURY ECONOMISTSearch for gain and rate of return. Aristoteles on interest, “For money was intended to be used in exchange, but not to increase at interest. And this term interest, which means the birth of money from money, is applied to the breeding of money because the offspring resembles the parent. Wherefore of an modes of getting wealth this is the most unnatural.” Problem of search for gain drives shareholder return, speculative trading and interest bearing loans all depend on growth. SeeECOLOGICAL ECONOMICS – PRINCIPLES AND APPLICATIONS. Financing meeting limits, Fullerton and Evergreen Direct Investing. Money contrasting against nature. Nature feel entropy as tractors rust, crops rot, smartphones break, building crumble but money just keeps increasing because of interest. Demurrage! Silvio Gessel, make money deteriorate. Keynes was impressed by the idea! SeeECOLOGICAL ECONOMICS – PRINCIPLES AND APPLICATIONS, MYTEN OM MASKINEN: ESSÄER OM MAKT; MODERNITET OCH MILJÖ223 I MYTEN OM MASKINEN: ESSÄER OM MAKT; MODERNITET OCH MILJÖInterest is as magical as to give a piece wood supernatural powers 24 I THINKING IN SYSTEMS – A PRIMER“One of the worst ideas humanity ever had was the interest rate, which led to the further ideas of payback periods and discount rates, all of which provide a rational, quantitative excuse for ignoring the long term.” 182 To encouragement
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