Bill Cobabe to K S (a friend on Facebook)
October 17, 2008 at 9:43 am
what is capitalism?
I want to get a few things on the table first - just so we understand each other...
First, I am not a communist, socialist, or anything else like that. I am a human being, and some of the excesses that I see revolt me. I am not speaking just of the love and pursuit of capital, but the use of credit to buy everything from tattoos to groceries. We live in a culture that demands instant, immediate, and eternal gratification of every one of our whims, whether they meet our actual needs or not. This is the case for almost every aspect of our world, from the way we eat and it's impact on our heath (and the costs associated with that) to the way we buy items (we have become a throw-away, consumption-based society). This has long lasting, far reaching impacts on our entire world. We see it in the "westernization" of cultures, the subjugation of languages and peoples, and the creation of an order that ostensibly has "free" trade in mind but really undermines the ability of various governments and societies to exercise authority and self-determination. That is abominable.
Secondly, the definition of captialism. In the broadest terms, capitalism is that economic theory and practice where the modes of production are held in the hands of private individuals. This is in contrast with communism, where the modes of production are held in the hands of those who are doing the production (the proletariat). Capitalism is interested in the way that markets function, because that's where advances are made. My business will only do as well as the market demands, and if my market dries up, so does my business. This encourages competition, fostering efficiency and lower prices, which leads to a strenghtening in a broader economy because people have more discretionary income and their buying power is greater.
I know this is very elementary, but I feel it's important to the discussion to establish what they are first so that we have a common frame of reference. If you disagree with these ideas, please let me know.
The root problem of capitalism is the degradation of the human condition. We saw this best in the industrial revolution. It is no coincidence that the seeds of communism were sown in the industrial revolution as a counter to the terrible conditions that existed then - children working 12 hour days, no education (why educate people if they're just going to be working in factories all their lives?), awful working conditions for everyone, massive pollution of the environment, and miserable living conditions. This is the world of Dickens and Marx, and the legacy of this could be seen in Sinclair and Shaw in our own century. They were wrong, but the problems they noted that are extant in capitalism are still pervasive. Communism is not the answer. Socialism is not the answer. And capitalism, unrestrained and unfettered, is also not the answer. What is the answer? I am not sure. I don't have any grand solutions yet.
We have made some advances. Education is become more and more available to people who had no access to it. The environment is something we are all aware of, if not trying to improve. And working conditions, at least in some degree and in some places, is getting better. But there are still the maquiadores and sweatshops in Mexico and China, still a dependence on foriegn markets for production and consuption, and all of it hinges on an outmoded and faltering transportation system. As new markets open new cultures are being devastated by western ideals. The human condition is getting better, but the cost is the richness and interest. And now when Wall Street hiccups, the world gets a cold. People around the world who have become dependent on the western consumption model will find themselves unable to adapt to periodic downturns and recessions in markets they can't even understand....
Free market capitalism historically has led to excesses. It's been compared to global gangsterism. "You will be free - your markets will be open - or you will die" seems to be the motto of these extreme capitalists. Why wouldn't people want to step into our lifestyle? Look how good we live! Look at our art, culture, and rich life! And it can all be yours if you open your market and buy, baby, buy! And if you don't have the money, you can buy on credit! We have the IMF and the World Bank to help you with all your needs... Just open your markets! Jobs for everyone! A car in every garage! And an apartment for you! Think of the tax revenue for your coffers - education, health care, truth, justice, and the American way!!!
Ah, but not everyone is American. The American way works for Americans, but not for everyone. And the lack of self-governance and determination, which evaporates when you sign on to some of these organizations, is really very troubling. It's not free market capitalism anymore. Now it's just wrong... And it's what we have now.
I have a lot more to say about this, but I think that's enough for now.
October 17, 2008 at 9:43 am
what is capitalism?
I want to get a few things on the table first - just so we understand each other...
First, I am not a communist, socialist, or anything else like that. I am a human being, and some of the excesses that I see revolt me. I am not speaking just of the love and pursuit of capital, but the use of credit to buy everything from tattoos to groceries. We live in a culture that demands instant, immediate, and eternal gratification of every one of our whims, whether they meet our actual needs or not. This is the case for almost every aspect of our world, from the way we eat and it's impact on our heath (and the costs associated with that) to the way we buy items (we have become a throw-away, consumption-based society). This has long lasting, far reaching impacts on our entire world. We see it in the "westernization" of cultures, the subjugation of languages and peoples, and the creation of an order that ostensibly has "free" trade in mind but really undermines the ability of various governments and societies to exercise authority and self-determination. That is abominable.
Secondly, the definition of captialism. In the broadest terms, capitalism is that economic theory and practice where the modes of production are held in the hands of private individuals. This is in contrast with communism, where the modes of production are held in the hands of those who are doing the production (the proletariat). Capitalism is interested in the way that markets function, because that's where advances are made. My business will only do as well as the market demands, and if my market dries up, so does my business. This encourages competition, fostering efficiency and lower prices, which leads to a strenghtening in a broader economy because people have more discretionary income and their buying power is greater.
I know this is very elementary, but I feel it's important to the discussion to establish what they are first so that we have a common frame of reference. If you disagree with these ideas, please let me know.
The root problem of capitalism is the degradation of the human condition. We saw this best in the industrial revolution. It is no coincidence that the seeds of communism were sown in the industrial revolution as a counter to the terrible conditions that existed then - children working 12 hour days, no education (why educate people if they're just going to be working in factories all their lives?), awful working conditions for everyone, massive pollution of the environment, and miserable living conditions. This is the world of Dickens and Marx, and the legacy of this could be seen in Sinclair and Shaw in our own century. They were wrong, but the problems they noted that are extant in capitalism are still pervasive. Communism is not the answer. Socialism is not the answer. And capitalism, unrestrained and unfettered, is also not the answer. What is the answer? I am not sure. I don't have any grand solutions yet.
We have made some advances. Education is become more and more available to people who had no access to it. The environment is something we are all aware of, if not trying to improve. And working conditions, at least in some degree and in some places, is getting better. But there are still the maquiadores and sweatshops in Mexico and China, still a dependence on foriegn markets for production and consuption, and all of it hinges on an outmoded and faltering transportation system. As new markets open new cultures are being devastated by western ideals. The human condition is getting better, but the cost is the richness and interest. And now when Wall Street hiccups, the world gets a cold. People around the world who have become dependent on the western consumption model will find themselves unable to adapt to periodic downturns and recessions in markets they can't even understand....
Free market capitalism historically has led to excesses. It's been compared to global gangsterism. "You will be free - your markets will be open - or you will die" seems to be the motto of these extreme capitalists. Why wouldn't people want to step into our lifestyle? Look how good we live! Look at our art, culture, and rich life! And it can all be yours if you open your market and buy, baby, buy! And if you don't have the money, you can buy on credit! We have the IMF and the World Bank to help you with all your needs... Just open your markets! Jobs for everyone! A car in every garage! And an apartment for you! Think of the tax revenue for your coffers - education, health care, truth, justice, and the American way!!!
Ah, but not everyone is American. The American way works for Americans, but not for everyone. And the lack of self-governance and determination, which evaporates when you sign on to some of these organizations, is really very troubling. It's not free market capitalism anymore. Now it's just wrong... And it's what we have now.
I have a lot more to say about this, but I think that's enough for now.
Comments