News Why Do People Criticize Capitalism?

[The Smoking Man]

TSM- I'm not really sure what you're arguing with me about. What Burnsys said, and I disputed, was that the wealth of Europe was built by slave labor, and by stealing gold and silver from the Americas. I would have thought it obvious that this couldn't possibly build an economy- all you'd end up with is a large untrained workforce and an inflated price of gold and silver. I never disputed whether or not the European powers imported slaves or gold and silver, I'm just trying to show that that's not an effective economic policy.

LOL ... You forget that the years prior to the 'revolution', the USA WAS Britain and the slaves there (and the prisoners exported from Britain) were the workforce.

To prove this, I brought up the point that during the time in which the European powers were doing this, their economies didn't really grow very much- their people still weren't much richer than those in what are now considered third world countries. During the industrial revolution, however, the wealth of Europeans skyrocketed.

Since this is the same philosophy used in China right now, I don't follow. Gold and Silver or Sony Walkmans and Cell phones. Take your pick. Slave labour producing Ingots or Electronics ... it doesn't matter. The effect is the same. The difference is ... Gold and silver are the product and the wealth at the same time requiring no domestic market. Electronics require a market and sap the domesic economy by producing a vertical flow of wealth in a credit based economy. If this had been done in the times of slavery with no socialist forms of wealth distribution, the rich would be in charge of warehouses filled with walkmans and no markets. As it is, they ended up with vaults filled with ingots of gold and silver ... even the Vatican which had a low population and a tithe of at least 10% of the take.

Since the no European power was importing slaves or stolen gold/silver at that time, I think that that proves that the idea of Europe's wealth being built on slavery and theft to be false.

No, actually at the time of the Industrial revolution, they also created a thing called Unions which moved some of the wealth downwards through a form of socialism and reduced the cost of production on mass produced goods making them affordable to the unwahsed masses.

This is completely false. The USA's wealth had been growing rapidly up until WWII, with the exception of the great depression of course. The USA had the largest GDP of any country in the world when WWII broke out. By far.

Yes, again, because of WWI America found itself relatively untouched and yet , as you point out, still managed to have 'the Great Depression'. Manwhile, Europe was rebuilding for the first time.

So you're saying that, while the USA becoming inefficient and unskilled, it's economy was finally starting to grow?

Yes. Look at it this way ... Most of the European industry had been converted over to the war effort. Enemies bombed each others war industries ... ergo, the factories previously producing products for consumers (like BMW) were bombed repeatedly and the machinery was lost. When the war ended, there was no industry to speak of and required a period of restoration until they could be brought back on-line. During that time, they were requred to look elsewhere for product. The only place left standing was ... the USA.

They've also made some cars that are a piece of ****, like the Yugo for instance. What's your point?

The point is that before the war European products were universally made with higher standards of quality and American made products carried the same stigma as the 'Made in Japan' or 'Made in Hong Kong' had in the 1960's America.

This started happening long before WWII. It happened because the American economy was growing so quickly, thanks to the industrial revolution.

That and the effects of WWI on the European economy.

So do you agree with me then that socialism hurts the economy, and capitalism helps it? I thought you were arguing with me.

Umm no ... look at my previous post. America is crippled with socialist programs along with most European countries. You have to look to China to find an economy free of Socialist/Communist principals. I say again ... China, regardless of what the name says is Fascist, not Communist. There is no universal health care, welfare, Unions, redistribution of wealth, minimum wage ... NOTHING. It is totally ruled internally by the power of the Currency and who has the most. (Including the government)

 

[pi-r8]

LOL ... You forget that the years prior to the 'revolution', the USA WAS Britain and the slaves there (and the prisoners exported from Britain) were the workforce.

You know that I was taking about the INDUSTRIAL revolution, right? Not the American revolution. The USA was independant by the time of the industrial revolution, and slavery was outlawed. (and it's no coincidence that these things happened in the order they did! Notice that Slavery was outlawed in Europe before it was outlawed in the US, and that Europe experienced the industrail revolution sooner than the US.)

Since this is the same philosophy used in China right now, I don't follow. Gold and Silver or Sony Walkmans and Cell phones. Take your pick. Slave labour producing Ingots or Electronics ... it doesn't matter. The effect is the same. The difference is ... Gold and silver are the product and the wealth at the same time requiring no domestic market. Electronics require a market and sap the domesic economy by producing a vertical flow of wealth in a credit based economy. If this had been done in the times of slavery with no socialist forms of wealth distribution, the rich would be in charge of warehouses filled with walkmans and no markets. As it is, they ended up with vaults filled with ingots of gold and silver ... even the Vatican which had a low population and a tithe of at least 10% of the take.

This is news to me. I had no idea that China relied on slave labor in the Americas to mine Sony Walkmans from the Andes. I was under the impression that they used low paid (some would say exploited) laborers to build the things. Do you see the difference? Slavery is prohibited under a proper capitalist government, but paying low wages is not. Electronics is something that people trade FOR, because it's useful. More electronics allows you to do more which allows you to produce more wealth. But gold is just a medium of exchange. Having more gold in the economy doesn't make the country richer, just like having more currency in circulation doesn't make it richer.

No, actually at the time of the Industrial revolution, they also created a thing called Unions which moved some of the wealth downwards through a form of socialism and reduced the cost of production on mass produced goods making them affordable to the unwahsed masses.

Ok first of all- unions aren't a form of socialism unless they're regulated by the government, which wouldn't happen under pure capitalism. And they don't reduce the cost of production, they increase wages.
Secondly- What does this have to do with what I was talking about? My point was- and still is- that while Europe was importing slaves and stolen treasure it did not grow richer, but it DID grow richer when it stopped doing that. THEREFORE, theft was not the source of Europe's wealth. How the industrial revolution made people richer has NOTHING to do with this.

Yes, again, because of WWI America found itself relatively untouched and yet , as you point out, still managed to have 'the Great Depression'. Manwhile, Europe was rebuilding for the first time.

You know you've contradicted yourself right? You said before that the US economy didn't start to grow until after WWII, but now you're saying that it grew after WWI. Make up your mind.

Yes. Look at it this way ... Most of the European industry had been converted over to the war effort. Enemies bombed each others war industries ... ergo, the factories previously producing products for consumers (like BMW) were bombed repeatedly and the machinery was lost. When the war ended, there was no industry to speak of and required a period of restoration until they could be brought back on-line. During that time, they were requred to look elsewhere for product. The only place left standing was ... the USA.

Here you go back to the WWII theory. This is great rhetoric, but it still completely ignores the fact the the USA had been an economic power since the industrial revolution.

The point is that before the war European products were universally made with higher standards of quality and American made products carried the same stigma as the 'Made in Japan' or 'Made in Hong Kong' had in the 1960's America.

That's completely untrue, but let's assume that you're right. What are you trying to prove? Seriously, I don't understand what you're arguing for. I thought we were discussing the source of the western countries' wealth, but you're just insulting US crafstmanship.

Umm no ... look at my previous post. America is crippled with socialist programs along with most European countries. You have to look to China to find an economy free of Socialist/Communist principals. I say again ... China, regardless of what the name says is Fascist, not Communist. There is no universal health care, welfare, Unions, redistribution of wealth, minimum wage ... NOTHING. It is totally ruled internally by the power of the Currency and who has the most. (Including the government)

I'd agree that China is closer to Fascism than Communism. They're certainly not capitalist, which would explain why the average Chinese citizen is still dirt poor. But once again... please, explain what you're arguing for. You said that "America is crippled with socialist programs", but America has the strongest economy in the world. Are you saying that socialism is the best economic system?
I remind you that this started with someone saying that Europe's wealth was based on slavery and theft, which I disputed. As far as I can tell, you still haven't even stated a position on this topic.

 

[RunDMC]

Are you all raving mad?

I'd agree that China is closer to Fascism than Communism. They're certainly not capitalist, which would explain why the average Chinese citizen is still dirt poor. But once again... please, explain what you're arguing for. You said that "America is crippled with socialist programs", but America has the strongest economy in the world. Are you saying that socialism is the best economic system?

I remind you that this started with someone saying that Europe's wealth was based on slavery and theft, which I disputed. As far as I can tell, you still haven't even stated a position on this topic.

This discussion seems to be "Communists are tyrants who want to enslave the poulace for the benfit of their own POWER" vs "Capitalists are tyrants who used slave labour for the benefit of their own POCKET"

The truth is that using slaves to dig up gold/pick cotton/whatver certainly didn't hinder the financial prospects of the slave owners, and communist regimes have tended to get out of control in the past.

It's like a bunch of people arguing over whether a cow is a canine or a feline. And the "The free market economy will deliver us to a nirvana of wealthy bliss" line is just crap.

Of course, the poor farmer in a communist regime would love to drive a giant SUV to the far end of a mega car park of an enormous Ikea, but somehow I can't help thinking that the big fat SUV driver in the car park of the Ikea is wishing there might be somehow be a simpler life.

To me it is all question of what we want to achieve. That we spend so much of our lives inventing new kinds of toothbrush bristles and so much of our lives looking at brands and ads and special offers that I wish we had an alien invasion to distract us from the drudgery of consumerism. I suspect more people feel the way I do every day.

Lets cut the "he-said, she-said" stuff and move on.

Oh yeah, and:

"2004: The number of high-net-worth individuals (HNWIs) — individuals with a net worth of at least U.S. $1 million, excluding their primary residence — grew by 7.3 percent to 8.3 million, a net increase of 600,000 worldwide. North America led with a nearly 10 percent growth rate to 2.7 million HNWIs, surpassing the 2.6 million in Europe. Asia-Pacific’s growth rate of over 8 percent — to 2.3 million HNWIs — was twice that of Europe." -- Merrill Lynch

Stop thinking of Europe + America = rich, Asia = poor.

The times, they are a changin'

 

[The Smoking Man]

I might add that the concept of 'slave' and 'slave wages' are not mutually exclusive.

Slaves required maintenance by way of purchase, food, clothing, housing, overseers, etc.

Slave wages are paid to a self maintaining (automatic) slave who provides for himself but doesn't have a lifestyle any better than the 'manual' version.

Capitalism in it's most basic form (Without socialist programs and unions etc.) is just a word that makes today's slave owners feel better about themselves.

 

[X-43D]

Talking about the industrial revolution and increasing urbanization, the UN warns that every third person will be a slum dweller within 30 years.

http://www.guardian.co.uk/international/story/0,,1055785,00.html

 

[El Hombre Invisible]

I might add that the concept of 'slave' and 'slave wages' are not mutually exclusive.

Slaves required maintenance by way of purchase, food, clothing, housing, overseers, etc.

Slave wages are paid to a self maintaining (automatic) slave who provides for himself but doesn't have a lifestyle any better than the 'manual' version.

Capitalism in it's most basic form (Without socialist programs and unions etc.) is just a word that makes today's slave owners feel better about themselves.

Moreover, in neither case is the worker guaranteed not to starve to death. Both are at the mercy of the owner/employer. The difference is that in the former situation, owners exploited western power, while in the latter employers exploit eastern poverty. Both have to pay maintenance of some kind - no workforce comes free.

 

[alexandra]

The problem I see with Anarchy is that since there's no government PROTECTING your property, anyone who has you outgunned can take it away from you.

Anarchy is often misunderstood and labelled as 'chaos'. While anarchy does mean not having a formal government 'from above', it does not necessarily mean 'barbarism' or chaos. But I am not the expert on anarchy; Smurf is:-)

Anyway, the problem that I see with capitalism is that the rich set up and control the capitalist state to protect their interests and to grow their wealth. The rich own the 'biggest guns' (I am speaking metaphorically - they literally own the guns, of course - but they also make, control and implement the laws and policies - including unjust and illegal invasions and wars - that secure and promote their interests).

Capitalism is a system that is designed to protect the most powerful (ie. the richest) by all means; capitalism cares nothing about human beings - they are just so much fodder for profits; that is what is wrong with it (if one is a humanist, that is). If one aspires to be a capitalist, and if one believes they are getting a 'good deal' out of capitalism and don't care at all at what cost (to others - including future generations) their individual, selfish interests are being met, then there is nothing wrong with capitalism (or the 'survival of the richest') at all.

The question "what is wrong with capitalism" is not merely academic. As others have pointed out, capitalism threatens our very survival as a species. One way in which capitalism is used to protect the rich is it protects their profits against (in human/species terms) rational decisions like doing something about pollution, global warming and the inevitable environmental catastrophe that the insatiable greed for profits will result in. So that's the other thing wrong with capitalism: by definition, being focused on growing the wealth of the few, it adopts a short-term view (increase profits now - don't worry about the quality of rivers, air, etc). I continue to wonder at people's support of a system that is hell-bent on destroying the planet. But I guess if human beings are stupid enough to just let this happen, then in evolutionary terms extinction is a 'fair' outcome.

 

[alexandra]

America is merely a lifestyle thing where the investors and bankers live.

Classic, TSM!

 

[X-43D]

I agree. The vast majority of us are still slaves to these corporate masters who are far and few between.

 

[loseyourname]

I agree. The vast majority of us are still slaves to these corporate masters who are far and few between.

I wonder if an actual slave would agree that your quality of life is no better than hers.

 

[Smurf]

Anarchy is often misunderstood and labelled as 'chaos'. While anarchy does mean not having a formal government 'from above', it does not necessarily mean 'barbarism' or chaos. But I am not the expert on anarchy; Smurf is:-)

Yes, and I'm not the expert on communism, Alexandra is. :-)

However, what pi says is not untrue. Many (libertarian) anarchists would condemn any institute which 'protected' any property at all. He would hold that protection is inherently a destructive act since it involves force, or violence collectively directed at a target that is opposed to the individual or entity who's property you're 'protecting'. This is, in effect, a destructive hierarchy, which I am opposed to.

However, some individualist anarchists would disagree that privately owned(and protected) property is essential to true liberty. It's still open to debate.

 

[X-43D]

Greed is the flaw in neoliberal policies. The strong can help the weak, especially those who have way too much money than they need.

 

[Skyhunter]

What is wrong with capitalism.

Currently the biggest problem with capitalism is that property rights have trumped personal rights. The homeless person who has no capital has fewer rights than the landed gentry. The landed gentry (middle class) has fewer rights than the wealthy aristocracy. I see this as anathema to the vision laid out for America by it's founders.

Abolishing the inheritance tax is a great example of this trend by capitalist aristocrats.

 

[Smurf]

Proudhon wrote an excellent essay on the subject of (whatever you want to call it - our organization of labour) that I will post some of if not all later. I can't remember what it's called but I have it at home somewhere.

 

[Astronuc]

http://staff-www.uni-marburg.de/~multimed/theorie/klassik/owen/bios/Proudhon.html

http://www.iisg.nl/~w3vl/specialtopics.html - this site has some interesting papers. The section on Anarchism should appeal to Smurf.

http://www.web.net/blackrosebooks/anarism.htm - Smurf, do have this book yet?

http://www.historycooperative.org/journals/llt/49/11review.html

Just for starters.

 

[Andrew Mason]

Currently the biggest problem with capitalism is that property rights have trumped personal rights. The homeless person who has no capital has fewer rights than the landed gentry. The landed gentry (middle class) has fewer rights than the wealthy aristocracy. I see this as anathema to the vision laid out for America by it's founders.
Abolishing the inheritance tax is a great example of this trend by capitalist aristocrats.

This is not so much a problem with capitalism but a problem with a lack of democracy. Social and economic democracy can be achieved in a political system that respects private property and encourages entrepreneurial drive and the creation and accumulation of private wealth. Indeed it cannot be achieved otherwise. But it requires a strong public sector that will ensure that private avarice ultimately works in the public interest. It requires a recognition that for capitalism to work, the economy must serve the people (Adam Smith would say the markets) and not the other way around.

AM

 

[Smurf]

The problem with Capitalism is that it is undemocratic. The entire idea of property ownership is. If a person is said to own something then, no matter if it is against the will of the general populace of against the will of the people it concerns, the state will enforce the owners will on all decisions to do with what he "owns".

 

[flotsam]

The best thing you can ever do when musing on what is the best world system is forget expedience and pretend you alone have the power to change the world and the future through objective analysis. Your job is decide what is the best system for the future existence, happiness and prosperity of the human race. Capitalism wouldn't get a look in!

Imagine for a moment that we are visited by advanced aliens keen to communicate with and view other 'galactic cultures'. Which world statesman gets the job of telling them that we are currently living under a system that is waging undeclared war on our planet, works on the principle of perpetual war to gain resources, stands by and watches 30,000 people die every day for the want of a meal and cheap drugs, privatises everything including ideas and information and is driven by the single principle of individual gain with little or no regard to the consequences.
If I was one of the aliens, I'd be disgusted.

P.S. What system do you think the advanced aliens would have at home?
Capitalism? not a chance, that I think would be long left behind in their evolutionary history.

 

[Smurf]

P.S. What system do you think the advanced aliens would have at home?
Capitalism? not a chance, that I think would be long left behind in their evolutionary history.

I don't see why not, we have it. You're assuming any extra terrestrial life with be more socially advanced than us. That's not necessarily true.

 

[flotsam]

I don't see why not, we have it. You're assuming any extra terrestrial life with be more socially advanced than us. That's not necessarily true.

I'm assuming the got to where they are by 'not' having a system that destroys their habitat and species and thus survives long enough to develop the capabilty to travel great distances in space.

 

[McGyver]

This is not so much a problem with capitalism but a problem with a lack of democracy. Social and economic democracy can be achieved in a political system that respects private property and encourages entrepreneurial drive and the creation and accumulation of private wealth. Indeed it cannot be achieved otherwise. But it requires a strong public sector that will ensure that private avarice ultimately works in the public interest. It requires a recognition that for capitalism to work, the economy must serve the people (Adam Smith would say the markets) and not the other way around.
AM

Very well stated. The role of the public sector, and democracy, can also be summed as "The Invisable Hand." And without it, a democratic system will fall prey to tyrany, a breakdown in social order, and chaos. It is with these regards - that "Free Speech" becomes so critical in maintaining the democratic system of checks and balances - and intervention when necessary.

Mac

 

[TheStatutoryApe]

I don't see why not, we have it. You're assuming any extra terrestrial life with be more socially advanced than us. That's not necessarily true.

Ever read anything by Michio Kaku? He contends that any advanced civilization capable of interstellar travel would have to develope sociologically far beyond where we are today in order to make that accomplishment. I would have to agree with you though that I don't quite see it as necessary but it would probably make it far more likely.

 

[flotsam]

Ever read anything by Michio Kaku? He contends that any advanced civilization capable of interstellar travel would have to develope sociologically far beyond where we are today in order to make that accomplishment. I would have to agree with you though that I don't quite see it as necessary but it would probably make it far more likely.

I think it is of almost universal agreement, that the future history of the human race (should it survive) will undoutably involve technological proggress and improvement in our understanding of the laws of nature as it always has.
Given this, why would social/political systems be left out.

Scientific theories will continue to give way to better ones. Medicines will continue to be replaced with better medicines. Machines will continue to be changed for better machines. Regressive political systems will give way to more proggressive ones. This is the fate of intelligent beings capable of these things and bound by evolution forever.

In my view evolution is a universal theory in every sense of the word. Not only does it apply to the whole universe but it also shapes and directs the actions and behaviour of every creature in more asspects and detail than that is initially obvious. Everything we do is essentially bound by its law.

In the future capitalism will be thought of by mankind as a primitive system that had its time and its purpose. Like the way we think of fudalism today. Capitalism has been an essential stepping-stone. But that is all any system is when viewed in history, a stepping-stone to the next one.

Capitalism will not be around forever, but change is a constant. Not even the hills endure. Not even the Earth will last. The next great human era will be the 'social epoch', viewed by humans a thousand years from now as great leap forward. Remember, modern socialism has/could only ever grow in stature due to the social conditions of capitalism. Socialism is a social/collective force and capitalism brought us together in cities and factories where the ideas spread. My visions of an advanced human civilisation do not include capitalism anymore than they do the spinning jenny.

 

[TheStatutoryApe]

I think it is of almost universal agreement, that the future history of the human race (should it survive) will undoutably involve technological proggress and improvement in our understanding of the laws of nature as it always has.
Given this, why would social/political systems be left out.
Scientific theories will continue to give way to better ones. Medicines will continue to be replaced with better medicines. Machines will continue to be changed for better machines. Regressive political systems will give way to more proggressive ones. This is the fate of intelligent beings capable of these things and bound by evolution forever.
In my view evolution is a universal theory in every sense of the word. Not only does it apply to the whole universe but it also shapes and directs the actions and behaviour of every creature in more asspects and detail than that is initially obvious. Everything we do is essentially bound by its law.
In the future capitalism will be thought of by mankind as a primitive system that had its time and its purpose. Like the way we think of fudalism today. Capitalism has been an essential stepping-stone. But that is all any system is when viewed in history, a stepping-stone to the next one.
Capitalism will not be around forever, but change is a constant. Not even the hills endure. Not even the Earth will last. The next great human era will be the 'social epoch', viewed by humans a thousand years from now as great leap forward. Remember, modern socialism has/could only ever grow in stature due to the social conditions of capitalism. Socialism is a social/collective force and capitalism brought us together in cities and factories where the ideas spread. My visions of an advanced human civilisation do not include capitalism anymore than they do the spinning jenny.

Evolution is an adaptation to environmental circumstances. It does not mean that things will always get better and better. If the environmental circumstances favour it the world could easily go back to societies predominantly run by dictators with a more classic version of corporatism. Depending on circumstances the exploitation of workers and resources may be the only viable way in which to get off the planet.

 

[X-43D]

True. Genetic evolution does not necessarily mean that human intelligence will increase.

 

[Astronuc]

Well Capitalism seems to be working at Goldman-Sachs.

Goldman Sachs is expected to pay $11 billion in bonuses this year. According to New York Magazine, that's $1.65 billion for the firm's 250 partner managing directors to split among themselves. With all senior managers of Goldman taking home a $600,000 salary, an equal split of 30 percent of $1.65 billion would be worth almost $2 million, pushing their pay into the neighborhood of $2.6 million. The remaining $1.15 billion is then split among the partners according to the discretion of the top dogs, who evaluate each partner. For those in the highest standing, the estimated numbers run in the neighborhood of $20 million to $40 million.

http://www.nymag.com/nymetro/news/bizfinance/biz/features/15197/

 

[Zlex]

The problem with Capitalism is that it is undemocratic. The entire idea of property ownership is. If a person is said to own something then, no matter if it is against the will of the general populace of against the will of the people it concerns, the state will enforce the owners will on all decisions to do with what he "owns".

And you think that is a problem?

Here is your life, and here is my life. Here are the reasons why you shoud abdicate some/any control over your life to be disposed of as I see fit. 'Voluntarily' has nothing at all to do with the concept of polite politics, because you/I don't even have to convince each other, 'politically;' you/I only need to convince enough of some mob.

So, not that you have, but let's not for one second pretend that basing principles on 'some type of politics' is in any significant way superior to basing principles on 'some type of violence,' because the force of numbers itself, ie, the violence that politics is in pursuit of, is not in itself either superior nor more likely to serve as a basis for 'principles' then any other form of mere violence.

America/Western Society is the first glimpse at an experiment trying to undercut the rules of mere politics/violence of numbers as a means to control the skins of others; a meager stab, if imperfect, at establishing the foundation 'principles' which restrict, define, guide, and limit anyone of us before we set out with our petty political arguments to control the skin of others. We would like to think that freedom in America means, anything goes, as long as we convoince enough of the mob to go along with it. Well, not yet, and not as long as we remain a constitutionally limited democratic republic, and not merely a tribe/mob.


It is the brute power of Marx's eminent domain that allows the tribe to do what it will, not any moral code. It is the ultimate might makes right; the ultimate will of the Jungle's Strong--the mob/tribe-- over the Jungle's Weak--any one of us.

It is only with the advent of modern civilization that attempts have been made to place reasonable limits on that always irresistable brute force. America and its constitutionally limited democratic republic is one of the latest, modern experiments pulling man from the jungle and declaring that in this tribe, we join together to defend the concept that the power of the tribe, although great, is not absolute. An idea very unlike the totalitarian extremes of scientific statism that have lurched across the rest of the world in the last century.

An idea so great that, it has left a long trail of individuals willing to sacrifice all to defend a tribe dedicated to that idea, so that it might exist somewhere on Earth. When you examine the true meaning of freedom, you find that it means freedom from the absolute dominance of the Jungle's tribe.

 

[Astronuc]

$430 a Square Foot, for Air? Only in New York Real Estate

How about that?

(Nov. 30) - The price of air has gone up in Manhattan.

It's now $430 a square foot.

Two New York City developers have agreed to pay a record-setting amount for "air rights" so they can build a 35-story apartment tower with views of Central Park from the high floors.

The brothers William L. and Arthur W. Zeckendorf are set to pay $430 per square foot - more than twice the going rate - for unused air rights over Christ Church and the Grolier Club at Park Avenue and East 60th Street. Christ Church will collect more than $30 million; Grolier will get about $7 million.

Air rights allow developers to build taller by buying the space over low-scale buildings and transferring it (on paper, if not in reality) to spaces over adjacent buildings. Although such transfers occur elsewhere in the country, the prices do not run as high as they do in Manhattan, which, after all, is an island and generally provides developers with one option: up.

NYTimes

 

[Astronuc]

In 1974, Professor Muhammad Yunus, a Bangladeshi economist from Chittagong University, led his students on a field trip to a poor village. They interviewed a woman who made bamboo stools, and learned that she had to borrow the equivalent of £15 to buy raw bamboo for each stool made. After repaying the middleman, sometimes at rates as high as 10 percent a week, she was left with a penny profit margin. Had she been able to borrow at more advantageous rates, she would have been able to amass an economic cushion and raise herself above subsistence level.

Realizing that there must be something terribly wrong with the economics he was teaching, Yunus took matters into his own hands, and from his own pocket lent the equivalent of £17 to 42 basket-weavers. He found that it was possible with this tiny amount not only to help them survive, but also to create the spark of personal initiative and enterprise necessary to pull themselves out of poverty.

http://www.gsb.stanford.edu/news/headlines/2004globalconf_yunus_speech.shtml

Thanks to cyrusabdollahi for this little gem.