The so-called “takers” have been taken for a wild ride!
It’s ironic, but no paradox, that the Speaker of the House, Paul Ryan, says “the takers” are really taking “the makers” for a ride. This gives currency to what Phil Gramm said about welfare: “We are sick and tired of other people living off our money.”
Since capitalists depend on welfare to value the surplus so it is not a dead-weight loss, there really is no paradox of thrift. It is an equal measure that actually quantifies the real risk.
Paradoxically, however, capitalists support what they say needs to be resisted. This transforms the economic argument into a political dimension, which capitalism ironically considers to be measurable, objectively, with economic value, like expanding the marginal profit to form the capital.
Formation of the capital measures surplus value (from which derives the formulas for managing the risk), but we don’t call it that anymore because Marx used it to describe deliberate exploitation of the masses by the capitalists. Actually, surplus value is a term used by classical economists. Capitalists especially used the concept to explain that the harm done (referred to today as “austerity measures” to reduce the debt and the risk of default) is really an added benefit.
Default on the debt (failure in a TBTF proportion) must apparently be good because it keeps happening on a massive scale. Reducing the risk to be avoided does not seem to actually occur (simply because it can not actually be reduced).
When the surplus rises, the probability of default increases. It’s no paradox, but that is the story told to explain the benefit associated with organizing to produce the detriment.
Financial risk is structured so that we believe it’s like living in the wild. Nothing is really fixed. It’s a wild ride on the supply-side. Jump in and hang on!
If you were speculating in oil prices today, it was a wild ride. It looked like the surplus was being valued as deflationary, but then there was a “surprising” reversal. Prices closed 2% higher.
Now, you think it doesn’t really matter because you weren’t directly involved; but no, you’re being taken for a ride on the supply-side.