forum musings (reply to Captn)

>Capitalism aggregates the wealth of billions of people into the hands of a relatively few entities which focus that wealth on achieving the next incremental advance in technology. This wealth tends to go to those entities which have demonstrated an ability to successfully achieve results, and it all happens VOLUNTARILY! <
This is a textbook example of how capitalism should work in theory, and one popularised by advocates of globalism. It is such a fine method of organising labour, it was also how Soviet communism was portrayed in State propaganda. After all, what did those old movies show? Happy workers out in the farms and in the factories, busily churning out useful products that would make a positive difference to the lives of the populace.
Of course, we now know the truth: That looming over this productivity was a top-heavy bureaucratic monster full of political cronyism and redundant paper-pushers, diverting wealth from the real economy and contributing nothing to it, indeed actually impeding it- the Politburo.
Unfortunately, we can now say much the same of modern global markets. Here too we see the real economy of goods and services being squeezed by a nonproductive entity. In this case, it is the banking and financial system (and the political system as well, of course), which has increasingly moved away from getting involved in anything that fits the romantic view of capitalism extolled by Captn and towards methods of simply moving money around, not producing anything of use to most people’s lives.
According to ‘Cancer Stage of Capitalism’, “The mutation in money investment and profit occurs when money capital is no longer a phase within the circuit of the production or distribution of goods or services, but is exclusively committed at every stage of its growth only to the multiplication of itself. Instead of any productive or distributive function in the metabolism of money through the medium of use-value to more money (M → C → M1), there is only the metabolism of money to more money without any conversion to use-value in the circuit (M→M1 →M2 →Mn).
For purposes of clarification and simplification, we will henceforth refer to this value sequence as: $→$1 →$n
“The defining principle of this investment mutation is that it is no longer bounded by any national base or interest or regulation, or by any other direct or indirect requirement to commit itself to any productive function beyond itself. It demands only to acquire maximally more money for money loaned or invested with no conversion into sustenance or service for any human, social or environmental life- organization in between…
New modes of mutating the metabolisms of exchange for use-value to the autonomous proliferation of money-demand are many and aberrant in form: turning bankrupt governments into social debt-collectors enforcing money lenders’ terms on progressively poorer public sectors; demanding ever more unconditional tax-breaks for foreign investment and debt over equity; massive diversion of bank credit to non-productive speculations instead of job-creating enterprises; globe-roaming attacks on national currencies by speculative buying and selling in multi-billion-dollar-profit accumulations which create no use-value and which cripple social and economic orders overnight; disaggregation of productive enterprises into broker-and- lawyer-dismantled assets-for-sale by leveraged buy-outs which pay for themselves by unproductive appropriation of the liquid capital of the bought firms; government deregulation of high-interest savings-and- loan banks so that their principals can expropriate up to $500 billion from taxpayers to pay for their speculative money-into-more-money diversions; reloading of the tax-obligations of banking and financial institutions and their investment customers onto the backs of productive members of society with less aggregate income to extract; rechannelling of citizens’ savings in major banks to continuous billion-dollar mergers and buy-outs with no productive gain; round-the-clock arbitrages and speculations on derivative market and currency values disconnected from any life or productive function; and steering of vast mutual and pension funds that now bear the privatized old-age security of the First World’s middle class into socially delinked money and stock speculation transactions”.
To say we volunteered for this nonproductive, parasitic monster is laughable. Of course we did not volunteer for it. Globalism may promote itself as being just what Adam Smith was thinking about when he wrote Wealth of Nations and imagined markets governed by an invisible hand turning rational self-interest into the common good. But in practice how the global market works is opposed to the free market in almost every way. The only ‘freedom’ it offers is the freedom of transnational corporations and banking cartels to act irresponsibly and have everybody else pay the price.
As I said before, the emergence of this nonproductive, wealth-taking monster was predictable from the basic logic of capitalism itself. Capitalism has two main motivations: To lower marginal costs as close to zero as possible, and to make as much profit for shareholders as possible. All else, (providing employment for people, building communities) is NOT the purpose of capitalism, though it will of course do these things if there is profit to be made or marginal costs to be lowered. It is inevitably the case that socialist economies will collapse, they are too-top heavy and centralised to be viable in the long-term. Once they collapse the populace is in a desperate situation. It is almost as if they are holding up a big banner saying ‘HELP US! GIVE US JOBS! WE WILL WORK 18 HOURS A DAY FOR TEN CENTS AN HOUR IF YOU COME!”. And, of course the capitalists here this cry. Workers in richer countries, requiring much higher wages to sustain their consumerist lifestyle, simply cannot compete against labour so cheap and arduous it is barely indistinguishable from slavery. And so the real economy of goods and services inevitably drains out of the country.
Of course, this is not all bad, for it is offering a step up for failed nations.
As for the developed nations, not only will their industries be moved abroad (or their workers replaced with cheaper, harder working immigrants) the endless pursuit of lower marginal costs and higher profits will seek out investments that use as little capital (in the form of materials and labour) as possible. This means they tend to move from C-£-C^n (in other words, making a commodity like a horse’s shoe or butchering a lamb, selling that commodity and making a profit, and investing the money earned to improve productivity, make more or better commodities and earn more profit and so on) to £-C-£^n (where the capitalist does hardly any of the actual work involved in the production of the commodity or the management of the staff, instead hiring employees to do all the work, possibly up to and including even the job of hiring itself), to the cancerous forms of money sequence £-£^2-£^n whereby money is moved around with no useful contribution invested at all, and all risk tranferred to the common people (socialism for the financial and political elite, capitalism for the rest).

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2 Responses to forum musings (reply to Captn)

  1. mlarkento says:

    Quite a manifesto!
    Will you be sharing with our mutual Technolibertarian friends? 😎

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