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Cake day: July 2nd, 2023

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  • Sunk cost fallacy does not require continued investment. No idea where you got that from. It just requires considering a sunk cost in your decision making.

    The difference between unusable and inferior was never the cusp of this argument to begin with.

    Literally quoted the inferior part in my original response and specifically mentioned you should just consider both on their merit without considering the sunk cost:

    The logical way to think of this is: You already paid for Plex so both are free for you. Since both are free, just pick the better one.

    Never said you should switch. Just because you seems to lack reading comprehension skills and misread my comment does not mean I am moving the goalpost. You are using a straw man argument: pretending I argued something I didn’t and debunking that nonexistent argument instead of my real argument.

    One valid complaint is that I did ignore switching costs in my shortened explanation. This is a mistake on my part, though it does not affect whether your statement as written is a fallacy. It is.












  • Imagine how much more productive we’d be if everyone actually had any reason to give a shit about their company.

    First of all, this is very questionable, since data from companies that overpaid/indulged their employees like Google and other tech companies in the past did not really see much increase in productivity as far as I can tell.

    Second of all, pressure on wages is different. Hence my referral to minimal wages etc. In a sense, a boss is indeed not incentivised to increase productivity if all the gains go to employees anyway, but this is one special edge case. As you say, a majority of productivity gains come from automation improvements and other kinds of innovation and process optimization, where the incentives do apply.



  • Depends on your definition of solve. There is no mechanism directly within capitalism to solve negative externalities that appear in capitalism once they appear. You need government regulations via democracy or another external force to step in and resolve them. That is why the increasing influence of corporations on politics is so harmful.

    But capitalism allows fewer negative externalities to appear. Let me give you an example for the worker owned factory. The elected leaders incentive is not to lead a productive factory. It is to be popular and win elections. So what happens when a role becomes obsolete. Perhaps you no longer need a person to stand in an elevator and operate it for people, since it can be automated. But firing people or retraining them for different role is unpopular, so the boss is incentivised to keep elevator operators. This means these people are not allowed to find jobs that are actually productive in improving the standards of living for everyone. People don’t like being fired when their position becomes obsolete but it is necessary to develop economies and advance civilization.

    Another example is investment. When the factory has surplus profit, should he increase the wages of the employees immediately or invest the money into improving the productivity by buying better equipment or building another factory site? What about maintenance? Should he increase wages and delay the maintenance until it is someone else’s problem? Which will be more popular? By the way, this delayed maintenance issue is why public infrastructure is crumbling almost everywhere, since that is overseen by democratically elected leaders.

    Capitalism prevents these issues from happening in the first place, since the owner gets a share of the factory output. He is incentivised to make the factory productive. And everyone below the owner is incentivised to help the owner increase productivity since the owner ultimately decides if they are fired or get raises and bonuses. This tends to fall apart when you have short term investors or reintroduce elections of CEO via shareholders. This is why privately owned companies like steam, costco, etc. are usually so much better and rarely get enshitified compared to corporations.



  • How do externalities turn communist revolutions into authoritarian regimes?

    This is an incredibly complex topic and depends somewhat on your exact setup of revolution and regime.

    Let me give another example of negative externalities to at least vaguely illustrate: corruption. It’s the exact same mechanism. The person receiving a bribe benefits from the bribe, but the cost (harm) is usually paid by their employer or society.

    For a news agency, a negative externality may be to intentionally spread incorrect information and propaganda. So as an exercise, try to think of the incentives of a news organization in capitalism when it is privately owned and anyone with money can start a competing news agency and in communism, where some kind of political organ (elected or named by elected officials) decides the news agencies funding and if resources are allocated to create a competitor.

    Economic and political systems are about incentives. The more the incentives of individual people are aligned with the incentives of society as a whole, the better the system.


  • I am pretty sure what you are trying to talk about is called negative externalities. A negative externality is simply put a cost (harm) that a company inflicts on others and does not have to “pay for” itself. E.g. destroying the environment. The issue is that negative externalities don’t just apply to companies and capitalism. They are also what turns communist revolutions into authoritarian regimes. Dealing with them (or realistically minimizing their impact) is an incredibly complex subject. Trying to say we should solve it by getting rid of billionaires is like saying we should solve global warming by dropping ice cubes into the ocean.


  • DreamlandLividity@lemmy.worldtoLemmy Shitpost@lemmy.worldGold
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    30 days ago

    You know, there is nothing wrong with not knowing how investments and markets (stock, commodity, …) help direct the economy. It’s a complex topic that most people really don’t need to understand for their lives. But confidently claiming they do nothing just because you don’t know is ridiculous…