In a classic example you have a village with 2 bakeries, one of the bakers came up with a machine to kneed the bread, so he can make more bread and sell it cheaper. This is sort of the story people tell to show how great capitalism is.
But we have reached a point where that one bakery now owns a chain of bakers, adds ingredients to the bread to make it more addictive, skips on actual ingredients needed for bread and replaces them with sawdust, made donations to the current political party so any competition has to jump through hoops to get a bakery license, etc.
And then uses his immense wealth and contacts to make frivolous lawsuits against smaller bakers trying to make their own machine, knowing full well they will not win in court but will financially ruin the smaller baker and tie them up in litigation for years, then forcing them to an unfair arbitration where they make a shit offer to buy out the competition
Capitalism only works if it’s regulated. Unregulated capitalism just becomes feudalism again. In your example, the owner of the bakery chain no longer has to innovate or compete. They simply own something and wait for money to be delivered to them.
Of course, for the government to be able to regulate things, it needs to be bigger and more powerful than the businesses it’s regulating. You can’t have Amazon being worth 2.3 trillion because it can easily make itself immune from competition and immune from regulators.
A mixed capitalist / socialist economy is the best solution we’ve come up with so far that actually seems to work in the real world. Only the most insane would want things like fire services to be fully privatized, or for every road to be a privately owned toll road. But, a fully state owned economy didn’t really work either. Trying that caused the USSR to collapse, and it caused China to switch to a different version of a capitalist / communist / socialist setup. The real issue is where to draw the boundaries. Most countries have decided that healthcare is something that the government should either fully control, or at least have a very strong control over. Meanwhile, the US pays more and receives less with its for-profit system. In England, they privatized water, and it seems to have been a disaster, meanwhile the socialist utopia of USA mostly has cities providing water services.
Where do you draw the line? Personally, I think Northern Europe seems to have the best results. Strong labour protections, a lot of essential things owned by / provided by the government, but with space for for-profit private enterprise too.
Agreed. I feel as though capitalism is a good option for things which can have elastic demand. Luxury items, entertainment, etc can all benefit from a competitive market because I have the luxury of not needing to buy them. On the other hand, I do absolutely need food, housing, and healthcare in order to live. Applying supply and demand principles when demand must be inelastic only leads to people getting hurt.
My dream system would be one in which, as a baseline, all human requirements for survival are provided no matter the situation, and where currency is only used for luxuries.
The major premise of Capitalism is risk vs reward. We hit a tipping point though, where 99% of people do not have any capital to risk, and the people who do have the capital have enough to nullify any risk.
Tax the rich.
Sometimes I get mad about how we in practice have basic income for the rich. If you have a few million dollars, you can park it in zero or low risk investments (eg: high yield savings, bonds) and get free money. Then you can just fuck off and pursue your dreams. No risk. Lots of reward.
But if you’re poor? Well you better take any job for any salary or you’re just a parasite blah blah blah. All pain, some risk, little reward.
My ex gets an allowance from his grandparents every week. They also bought him a house.
He’d get a job for a couple years, fuck around and get fired. Only got through college because I did his homework.
He has a house, he has a fridge full of food, he can go to restaurants and order out and take weeks off for vacation.
I worked full time through college, often three jobs. I still have massive student loans. I work two part time jobs, because the career field I went into is collapsing, and I’m not welcome as a trans person anyway.
I have always worked; he has not. I sleep on a rug and stack of pillows; he can pick out whatever luxury furniture he wants.
Work is entirely disconnected from reward.
Rich people also get handed so many free things.
Put over $100,000 in the bank and they will throw free accounts, low interest credit cards, rewards, free safety deposit boxes, personal concierge services. And that’s just the start.
Oh yeah I forgot about that. One of the banks here refunds ATM fees if you have a minimum balance of $2500 (and waives the monthly fee if you have $25,000). Like, my guys, the people who don’t have money need that fee waived a lot more. But the bank just wants to make money and that means appealing to rich people.
We hit a tipping point though, where 99% of people do not have any capital to risk
When do you think this tipping point was? Because as far as I can tell this was around the French revolution.
In modern economics, a massive change came about in the early 1970s. Productivity and profits decoupled from employee wages, and continued to rise while wages stayed flat. Fast forward 50 years, account for inflation and shifts in technology, and it’s easy to see that employee wages HAVEN’T RISEN in meaningful amounts for 50 years. Meanwhile, companies are making more money than ever.
So, I’d say it was in the 70’s.
