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Obviously Zinn does not know what he is arguing. Firstly, Esuric tried to explain to you that in the unhampered market place an individual can act upon his preference through his purchasing power. He may use it all or a part of it to buy a good (depends on the marginal utility). And he compared that case to a democracy where an individual himself represents
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My point was that the claim that workers are more risk adverse than capitalists is incorrect. This is because there are many other risks besides monetary risk. And my point was to explain you the case in which an individual has got relatively lower time preference and still does not engage in capital investment because of his relatively also lower risk
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Eric, I believe me and filc are both talking about two distinct types of action, each of which demonstrates the actor's, who perfroms it, different degree of bearing uncertainty. An individual who prefers to be employed because he thinks he will have in total enjoyed more goods at the end of time period X if his income consisted of labour's
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[quote user="Eric"] I am talking about the individual whose action to become a labourer contains implications which when unbundled reveal that 1) he prefers present goods to future goods relatively more than the capitalist who employs him or 2) that he is relatively more risk-averse than the capitalist who employs him. You cannot make either
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[quote user="Eric"] I don't buy the claim that people choose to be workers because they are more risk adverse or because of time preference. The specific reasons for someone becoming a worker has to be determined on an individual basis. Although the efficiency of worker run firms is more of an emperical issue than anything else. If they
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I am sorry for the misunderstanding I caused. When I asked "Why such and such?" I did not mean to go into the psychological aspect of one's preference. I was trying to get your attention to why does the labourer agree to an arrangement that specifies such circumstances that he will be paid in wage which rate is lower than the output price
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I am wondering when will certain individuals stop using the word 'capitalism' with a political connotation. Answering your question: the Nazi State was a de facto owner of the factors of the production.
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The so-called nation's wealth does not embody one single physical property. And what is else, the nation is not a single body owner of all the "national" resources. And we very well know that exchange ratios are formed on the margin. That is why even if we manage compute the nation's wealth, the result will be meaningless. Edit: I
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What an economist.
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[quote user="Laotzu del Zinn"] Zinn, who has to have said something so that you appreciate it and not merely cast it away for being an appeal to authority? "Hazlitt knows better than you" or "even Marx agrees" are appeals to authority. What do you want me to say? "Ok, just stating you're right makes you right."