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Cake day: June 14th, 2023

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  • UnderpantsWeevil@lemmy.worldtoLemmy Shitpost@lemmy.worldChoose wisely!
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    23 hours ago

    The thing about Anarchy is that, for many people, the cashless society where you own nothing and are fully removed from the machine of industry is already here. Its just called “poverty”.

    The problem is that this kind of poverty isn’t equally distributed. You’ve still got this large, heavily armed occupying force that preserves money, capital, and the painful prodding of induced productivity for everyone else.





  • UnderpantsWeevil@lemmy.worldtoTechnology@lemmy.worldSomeone's gotta say it
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    1 day ago

    You really think companies in America with monoplies would lower prices just because their costs went down?

    So, theoretically, there’s a point at which induced demand through lower prices can raise profits. Having a monopoly on an elastic good only benefits you when you’re onboarding new clients at an escalating pace. Private energy companies looking to increase energy consumption overall may well take an upfront haircut on the retail price in order to encourage more people to adopt hardware that consumes the commodity.

    But - over the long term - sure, the incentive is to capture more revenue in pursuit of higher profit. And that means raising prices faster than inflation.

    That said, a public investment, could be pursued as a loss-leader. Public money invested in publicly owned utilities raises the availability of low-cost energy for private consumption. This is spent in pursuit of higher overall economic growth.


  • Our utility bills would be cheaper if the government invested

    So much of the price of a thing is bound up in the administrative overhead and profit extracted at every step of the delivery process. You can pull a kwh of energy out of the ground, in the form of a lump of coal or a liter of gas, for pennies on the dollar when it is eventually sold retail. And that’s before we consider the pricing impact of artificial scarcity that occurs under the ERCOT model of wholesale electricity auctions.

    By contrast, the TVA system has kept prices below (often far below) the national market rate simply by operating at-cost as a public enterprise. Energy companies in socialist states - from Sweden to Iran to China - can even retail electricity at subsidized rates (below cost of production) as a loss leader intended to spur high value domestic energy-hungry industries like steel manufacturing and chip fabrication.

    Getting to green energy now that the global economy is flush with dirt-cheap high yield solar panels and market-competitive lithium batteries definitely cuts the raw labor / machine costs of fossil fuel extraction. And they defer the tail costs of fuel waste pollution management as well as the associated ecological and human health knock-on effects. But even sticking to the old fossil fuel economy is cheaper under a public system when the costs of operation aren’t inflated by the demands of private administrators and investors.