blueskies
October 18th, 2005, 07:48 PM
by Grugyn Silverbristle
Capitalism: An economic system in which investment in and ownership of the means of production, distribution and exchange of wealth is made and maintained chiefly by private individuals or corporations.
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Capitalism is not a system of values. Rather, it establishes a single value - money - as a measure of all transactions. Capital assets are measured by their cost, not their value. Labor is an expense, not an asset.
Capitalism is not free enterprise. Indeed, the two ideas become mutually exclusive. Under capitalism it is acceptable for one to be barred from teaching if he does not join the teachers guild, to be denied access to the courts and justice if he does not support the lawyers guild, to be denied opportunity to hold public office if he does not support the political guild, to be denied opportunity to sell his labor if he does not join the labor guild. Capitalism is a system whereby the means of production (one might also say of accomplishment) are owned by private interests: individuals, corporations and organizations.
If one construes free enterprise to mean the freedom of an individual to engage in any occupation, venture or business pursuit, capitalism will present him with regulation and prior claims against virtually any activity. While regulatory agencies claim to serve the public, in fact they exist to privatize the interest of a select few over any field or discipline. Ultimately, a newcomer is forced to literally purchase his own freedom before doing business, and then only on the condition that he support the policies of the self-appointed regulators.
Capitalism recognizes a value only for those assets that are purchased. Likewise, it values only those services that are sold. In other words, only those who first have money can own assets, and only those who actually sell their services will be recognized. Money is the source of all value.
I am not condemning the system; I am simply asking people to see things as they really are, and to make an effort to think clearly and use language properly.
For example, when I hear people praise capitalism, free enterprise and traditional values all in the same breath, I am confused. Likewise, when I hear of Marxist professors, I wonder, what do they do with their teachers-guild paychecks? Why do they all cry poverty and flock to the suburbs? On the surface, these people are so hypocritical and self-contradictory, I should think their services wholly worthless, excepting that they have been bought and sold in a "free" marketplace.
The fundamental purpose of capitalism is to enforce the theory that ownership is superior to work. "If I own the materials and you do the work, I am entitled to a share of your profits. Now, as owner of the materials, I can find anybody to do the work for me, but you need me or you can't do a thing. Therefore my share should be bigger than your share. I will, however, be fair. I will not pay anybody else more than I would pay you, so if you are the low bidder for the labor contract, I will give you the job. This way, I will be fair to everybody."
The corollary of the capitalist theory is that keeping the poor in poverty increases the owner's wealth by keeping down the cost of labor. This profits everyone, since it keeps down all costs and enables the poor to buy more with less.
Capitalism does not, however, thrive in a two-class system. If there were only rich and poor, revolution would occur. The purpose of the middle class is to maintain the infrastructure that keeps rich and poor apart. They are always employed by the wealthy. The ideal middle-class qualities are to have limited knowledge, still less imagination, and to be so thoroughly controlled by religion or ideology that one will believe it is righteous to take from the poor and give to the rich.
Capitalism is ideally suited to the welfare state. Politically-correct thinking and the ability to take orders from superiors are the keys to an appointment to a middle-class job managing (exploiting) the poor for a salary, which assures the applicant a middle-class standard of living so that he can compete, marry, put his wife to work to buy a few luxuries that will keep her happy and send their babies to day-care school. Meanwhile, the huddled poor provide a large unemployed labor pool that will keep wages low, and their sad lot inspires the middle-class to keep working hard.
Deficit spending is still better for capitalism. Since all work, hence all wealth, trickles down from the wealthy, any dimunition of their wealth would result in less work, hence more poor and fewer middle-class. On the other hand, if the government borrows from the wealthy instead of taxing them, it will increase their wealth by the amount of its interest payments and therefore increase employment. Big government is bad. Therefore, it is better that government programs be sub-contracted back to the wealthy, who have both the incentive and the means to become more efficient.
As efficiency and productivity increase, the middle-class shrinks and the poor classes expand. This is not to be overly feared, however, because as the number of poor increases, government will also increase; it will need to borrow more from the rich, making them richer, creating more middle-class jobs taking care of the poor on government contract. It can go on forever.
Capitalism makes me sick.
"Non silba, sed anthar'
Capitalism: An economic system in which investment in and ownership of the means of production, distribution and exchange of wealth is made and maintained chiefly by private individuals or corporations.
---------
Capitalism is not a system of values. Rather, it establishes a single value - money - as a measure of all transactions. Capital assets are measured by their cost, not their value. Labor is an expense, not an asset.
Capitalism is not free enterprise. Indeed, the two ideas become mutually exclusive. Under capitalism it is acceptable for one to be barred from teaching if he does not join the teachers guild, to be denied access to the courts and justice if he does not support the lawyers guild, to be denied opportunity to hold public office if he does not support the political guild, to be denied opportunity to sell his labor if he does not join the labor guild. Capitalism is a system whereby the means of production (one might also say of accomplishment) are owned by private interests: individuals, corporations and organizations.
If one construes free enterprise to mean the freedom of an individual to engage in any occupation, venture or business pursuit, capitalism will present him with regulation and prior claims against virtually any activity. While regulatory agencies claim to serve the public, in fact they exist to privatize the interest of a select few over any field or discipline. Ultimately, a newcomer is forced to literally purchase his own freedom before doing business, and then only on the condition that he support the policies of the self-appointed regulators.
Capitalism recognizes a value only for those assets that are purchased. Likewise, it values only those services that are sold. In other words, only those who first have money can own assets, and only those who actually sell their services will be recognized. Money is the source of all value.
I am not condemning the system; I am simply asking people to see things as they really are, and to make an effort to think clearly and use language properly.
For example, when I hear people praise capitalism, free enterprise and traditional values all in the same breath, I am confused. Likewise, when I hear of Marxist professors, I wonder, what do they do with their teachers-guild paychecks? Why do they all cry poverty and flock to the suburbs? On the surface, these people are so hypocritical and self-contradictory, I should think their services wholly worthless, excepting that they have been bought and sold in a "free" marketplace.
The fundamental purpose of capitalism is to enforce the theory that ownership is superior to work. "If I own the materials and you do the work, I am entitled to a share of your profits. Now, as owner of the materials, I can find anybody to do the work for me, but you need me or you can't do a thing. Therefore my share should be bigger than your share. I will, however, be fair. I will not pay anybody else more than I would pay you, so if you are the low bidder for the labor contract, I will give you the job. This way, I will be fair to everybody."
The corollary of the capitalist theory is that keeping the poor in poverty increases the owner's wealth by keeping down the cost of labor. This profits everyone, since it keeps down all costs and enables the poor to buy more with less.
Capitalism does not, however, thrive in a two-class system. If there were only rich and poor, revolution would occur. The purpose of the middle class is to maintain the infrastructure that keeps rich and poor apart. They are always employed by the wealthy. The ideal middle-class qualities are to have limited knowledge, still less imagination, and to be so thoroughly controlled by religion or ideology that one will believe it is righteous to take from the poor and give to the rich.
Capitalism is ideally suited to the welfare state. Politically-correct thinking and the ability to take orders from superiors are the keys to an appointment to a middle-class job managing (exploiting) the poor for a salary, which assures the applicant a middle-class standard of living so that he can compete, marry, put his wife to work to buy a few luxuries that will keep her happy and send their babies to day-care school. Meanwhile, the huddled poor provide a large unemployed labor pool that will keep wages low, and their sad lot inspires the middle-class to keep working hard.
Deficit spending is still better for capitalism. Since all work, hence all wealth, trickles down from the wealthy, any dimunition of their wealth would result in less work, hence more poor and fewer middle-class. On the other hand, if the government borrows from the wealthy instead of taxing them, it will increase their wealth by the amount of its interest payments and therefore increase employment. Big government is bad. Therefore, it is better that government programs be sub-contracted back to the wealthy, who have both the incentive and the means to become more efficient.
As efficiency and productivity increase, the middle-class shrinks and the poor classes expand. This is not to be overly feared, however, because as the number of poor increases, government will also increase; it will need to borrow more from the rich, making them richer, creating more middle-class jobs taking care of the poor on government contract. It can go on forever.
Capitalism makes me sick.
"Non silba, sed anthar'