01-03-2017, 08:54 AM
(01-02-2017, 07:44 PM)SomeGuy Wrote:Quote:But the people producing the free stuff need income, which has to come from somewhere. You cannot feed your family on subjective value.
What of the corporate spending on IT services, increased electrical consumption, routers, devices, infrastructure, etc. You have already acknowledged that these things constitute the sort of spending on new demand that traditionally constitutes a K-wave, so why do you keep circling around to the advertising issue?
I'd be interested in reading and discussing the actual work you did on this, if you don't mind.
Corporate spending ultimately must be paid for by revenue that comes from consumer spending. If the new corporate spending is paid from with new consumer spending then it is part of a leading sector. If the corporate spending is paid for by savings then it doesn't act as a leading sector. This is because the growth is IT infrastructure is offset by shrinkage elsewhere in the economy. The advertising is simply an easy to identify example of this cost shifting.
Some of this spending does constitute a leading sector. For example online gaming requires good network infrastructure and a lot of hardware. I paid a premium for my PC simply so I could play my favorite game at a reasonable pace. This is real leading sector stuff. I'm sure we could think of many other examples.
The only online material I have on this stuff is the two links I game above. The size concept is only in my fourth book.
https://www.amazon.com/Cycles-American-P...0595327214
I stopped looking into this stuff around 2004, as I was starting to shift into looking at this stuff from a political-economic pov as opposed to economic-political.