united for freedom 

Waste

The waste of human beings creates social costs of unemployment, poverty and debt. To treat labour as an expense and use payroll reduction as a way to reduce expenses is not economically rational. Rationalists consider labour to be the primary source of consumer buying power and marginalization of labour to save money as an inexcusable lowering of total Demand for goods and services.

Humans become marginalized when speculators exploit others. By laying off or firing employees costs are reduced for the speculator and transferred onto society. Everyone pays but the speculator benefits and everyone else loses. It is reminiscent of the villager who adds one more cow than the one alloted him at the expense of the grazing land and the village herd. (see the Tragedy of the Commons)

The waste of natural resources benefits foreign consumers but creates waste in that it undervalues domestic labour and natural resources. The true cost of production in Third World sweat shops is not included in the bill presented to the foreign customer and does not compensate the consuming community for the loss of good paying jobs. This process is referred to as the externalization of costs or the socialization of costs as it creates costs that society and future generations must pay and it is wrong.

Speculators waste natural resources because they assume they will reap the benefits before the costs come due. A speculator might theoretically sell oxegen futures (a claim on the earths air) to an alien on the assumption he will be dead before the sell comes due.

The waste of technology is when machinery is used to marginalize human beings. This is not the proper use of knowledge, it is not wisdom. There is no rational justification for introducing machinery when it results in an over-all loss.

Speculators assume the cost of unemployment will fall on others but the benefits from lowered production costs will accrue to them.

The waste of Capital is allowing equipment and structures and infrastructure to sit idle or be underused when there are people in the community who could use these assets.

It pays owners to let capital sit idle rather than incur a loss in operating it. However, idle capital and empty buildings is never advantageous to the community. Idle capital and technology changes that produce unemployment create social costs.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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waste