Capital investment is dangerous

Onyx

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Dec 17, 2015
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It should be avoided unless the investors return is equal to his investment, and the actual investment is essential for the business. Rejecting it helps make the economy stronger and more self sufficient.

Non-essential capital injections protect wasteful and parasitic activity. Additionally, capital investment creates a parasitic relationship between the investor and the business, where the investor makes a return far greater than his initial contribution at the businesses expense. All capital has a source, which makes this problematic for both economic and ethical reasons.

Of course, this advice is unlikely to be taken seriously without a serious culture change and restructuring of business hierarchy. Many of those at the top of the hierarchy do not care about the long term sufficiency of the economy, or how many people they sucker in and exploit to get rich.
 
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How about this Onyx
Don't invest money unless it's unconditional.

If it's worth it to you just to SUPPORT someone in developing their business plan,
REGARDLESS if these succeed or fail,
then invest for its own inherent benefits.

If your investment depends on outcome, which you cannot control,
this is a recipe for misery and stress. So if you can't handle that
"unconditionally" don't invest in that, where your consent to
contribute DEPENDS on succeeding since you can't control or help that.

Only invest where it's worth it to you in itself, regardless of outcome.
And you will succed in your goal which is to support the plans you believe deserve that.
Don't make the outcome a condition, and then there is no risk of danger.
 
Only invest where it's worth it to you in itself, regardless of outcome.
And you will succed in your goal which is to support the plans you believe deserve that.
Don't make the outcome a condition, and then there is no risk of danger.

I see where you are coming from, but my point was more in regards to promoting sufficiency and rejecting exploitation.

Capital is not finite. At least not in a world with finite resources. That's why output should not exceed input in terms of capital investment.
 
I see where you are coming from, but my point was more in regards to promoting sufficiency and rejecting exploitation.

I keep reading your post but have no idea what your point is. Does it relate to the real world in any way or is this just some esoteric statement? I've spent the last 5 weeks neck-deep in an old factory in dire need of capital investment trying to find the best path forward.
 
I keep reading your post but have no idea what your point is. Does it relate to the real world in any way or is this just some esoteric statement? I've spent the last 5 weeks neck-deep in an old factory in dire need of capital investment trying to find the best path forward.

My point is pretty obvious IMO, and true. Most are not willing to point it out, since it requires a complete reworking of our economy. It would require that we do other things to lower both the cost of doing business and the barriers of entry. You would also need to restructure how business hierarchies are organized, and change the culture of economic participants.

That old factory of yours. Is it producing a profit? If so, then it should save and make changes overtime. If it cannot sustain itself, then it should die. Like I said though, we can compensate by lowering the artificial barriers of entry and costs of doing business.
 
The business is not profitable but I'm hired to get it there (and let someone else's business die). My labor and energy costs are above industry standard because of our equipment. Some capex projects have a 30 day return and some an 18 month return, clearly I'm prioritizing for quickest return with the intent to roll those savings into future projects.

I still suspect you're talking about something completely esoteric; "a complete reworking of our economy", "restructure how business hierarchies are organized, and change the culture of economic participants". Forgive me, I only understand business from my myopic view of saving 630 jobs at this one plant. I dont have the luxury of viewing business as an academic.

.
 
The business is not profitable but I'm hired to get it there (and let someone else's business die). My labor and energy costs are above industry standard because of our equipment. Some capex projects have a 30 day return and some an 18 month return, clearly I'm prioritizing for quickest return with the intent to roll those savings into future projects.

I still suspect you're talking about something completely esoteric; "a complete reworking of our economy", "restructure how business hierarchies are organized, and change the culture of economic participants". Forgive me, I only understand business from my myopic view of saving 630 jobs at this one plant. I dont have the luxury of viewing business as an academic.

Do you mean macroeconomics? If you do not have an opinion, then others will have one on your behalf. Speaking of which, why even comment if you do not have the luxury to talk about the actual topic?

If you "save" a weak business through capital investment, then you are actually costing more jobs in the long term. That's wasted wealth, or did you not understand that?
 
No one saves a business through capex. It's your thread, which I still dont understand, so carry on.
 
Non-essential capital injections protect wasteful and parasitic activity..

dear, are you trying to say capex is dangerous ( as per thread title) or non essential capex is dangerous as you said above?

why get yourself all confused with such trivia that is over your head. The question in economics is capitalism versus socialism! Why not concentrate on that rather than dilute your limited energy with trivia???
 
dear, are you trying to say capex is dangerous ( as per thread title) or non essential capex is dangerous as you said above?

I explicitly said that capital investment was dangerous. I never said that capital expenditure was dangerous.

We cannot have an honest discussion if you are going to put words in my mouth.
 

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