Monday, March 10, 2014

Global Socialism

I believe accelerating money circulation is generally a positive development, but it's inherent there must be negative consequences are resultant. However, freeing money from interest seems somewhat radical and it's very difficult for me to support that without a great level of independent investigation. Still, there may be some benefit to freeing money from interest during certain situation, but those situations can be hard to define. Even such a broad topic such as recessions are arbitrarily defined. Why aren't recessions defined with negative economic growth that last only one day or a year rather than the current definition? Thus, speculative measures can result to manipulate certain outcomes that can benefit interested parties because arbitrary definition may, in fact, not reflect reality. Reality is not static and can be changed very significantly to create a new reality when there is a need. I do agree with many ideas that were presented such as creating a global economic system, and I very strongly support integration between the world's countries. Why do I support such a notion? This is because the autarky of the Soviet Union was an economic disaster, so I do not believe socialistic systems are as bad as often portrayed because it seems to be working in China and even in the U.S. as social security that is quite successful and extremely popular. They are certainly not effective without a mixed economy because capitalism is an integral component of prosperity. The effect of accelerated money circulation may actually benefit capitalism very significantly, but socialism in a mixed economy must still be maintained without it taking up too much power over the economy. I am wary that getting rid of interest may even give a socialist system too much power over its capitalism counterpart. As a result, I do understand why Keynes inherently supported such a monetary system that does not have interest during recessions because it would strengthen global socialism. Still, I may be wrong because I am not Keynes himself and the consequences of global socialism are not very clear.

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