Hi Lemit,
Quote:
Originally Posted by lemit
(Of course we all know that, once terms are established, all economists say pretty much the same thing. That's why so few of them even bother to publish.)
So I'll keep working on that, and I'll get back to you later.
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The interface between politics, economics, business and finance is a place not of this real world, a place where things like perpetual motion machines happen.
Consider depreciation of PC's when they were completely written off over 3 years (now 3.5) with a business tax rate of 33%. If you replace one third of your PC's each year and depreciate all of your PC's by one third each year then the savings in profit from the depreciation (deducted from business profits before tax) will be equal to the original cost of buying the retired PC's 3 years ago.
If you combine all of the various aspects of the downsides outlined in my previous post with the perpetual motion machine you end up with something that I call the Leveraged Depreciated User Paid Leasing System. I won't go into real detail but the system involves a wholly owned subsidiary providing 3x leveraged PC's on lease to a parent company (a real world application (and there was one) would involve a partnership of large members of the same industry, who all owned a share of the 'subsidiary' proportional to their industry requirements, but would still be equivalent).
A 3xleveraged depreciated User paid leasing system with a 10% Goods and Services Tax (GST) would return 1.36 to the Government as tax, 2.56 in profit to the userers and the poor old useree will pay 6 for something that chould have been done entirely internally and only cost 1 to the user through their government.
This Crony Capitalist system is the basis for a mathematical proof I call the 'Godellian disproof of global unregulated leverage', I'll dig it up if you like. Basically the results change when you change all of your OR's in your original equation to AND's. i.e. x= a OR b OR c and x = a AND(+) b AND(+) c are totally different.
And then we can get onto kickbacks vs vendor comissions, later.
