Hi all,
I’m seeing a lot of hate for capitalism here, and I’m wondering why that is and what the rationale behind it is. I’m pretty pro-capitalism myself, so I want to see the logic on the other side of the fence.
If this isn’t the right forum for a political/economic discussion-- I’m happy to take this somewhere else.
Cheers!
See https://en.m.wikipedia.org/wiki/Thomas_Piketty for a basic rundown - in short, empiric data over the last 250 years show that unregulated capitalism concentrates wealth at a rate that is larger than the economic growth.
Under capitalism, value is extracted and concentrated. That in turn means that your employer is motivated to get as much value out of you as they can. Companies are motivated to charge you as much as they can convince you to pay.
Think about a friend who might ask to buy something of yours; let’s say it’s a sofa. If we apply that same logic of capitalism, you should try to get as much money as possible. I don’t know about you, but I don’t like the way that it feels.
Capitalism sold us a fairy-tale.
Companies compete for customers, they improve products so it breeds innovation and they also compete for workers, so it gets better for everyone! Except it doesn’t.
The reality is quite the opposite. Here’s what happens. They want to maximize profits so that the owners of the company get more money. How do you maximize profits?
- You can advertise, and attract more customers. Alright, but eventually everyone has a widget. Maybe you can poach some customers from a competitor, but ultimately the market is saturated. Things get replaced as they break there’s a natural equilibrium. How do you increase profits?
- You can charge more. Raise the price. That only works so far before you lose customers to your cheaper competition, again you reach an equilibrium. How do you increase profits?
- You can innovate! Oh yes, that’s what capitalism is all about, improve your production, instead of 5 parts that need to be screwed together, now it’s just one part that falls out of a machine. You spend less time making each widget so you make more profit. But eventually there just isn’t any room to innovate any more. How do you increase profits?
- You can use cheaper materials. But here again, you bump against an equilibrium, the cheaper materials often break more easily - sometimes that is wanted (planned obsolescence) but your customers will notice the drop in quality and eventually they’re not willing to pay as much for your widget any more. How do you increase profits?
- Well, the last big item on your list: payroll. Do more work with less staff, or in other words pay staff less.
So what you end up with is low quality products, it’s a race to the bottom of who can make the crappiest product that the customers are still willing to pay for.
And for the workers? Well, they don’t earn much, we outsourced their work to overseas or replaced them with machines and computers. All the money went into the pockets of the owners and now the workers are poor. They’re desperate to even find work, any work as long as it allows them afford rent and barely not starve. If one of them has concerns about the working conditions, fire them, somebody else is more desperate and willing to accept the conditions.
So capitalism is destined to make us all poorer. It needs poverty as a “threat” to make you shut up and do your work “you wouldn’t want to be homeless, would you?”
The problem is not money itself, it’s not stores or being able to buy stuff. That’s an economy you can have an economy without capitalism. The problem is that the capitalists own the means of production and all the profits flow up into the pockets of the owners. And often the owners are shareholders, the stock markets, they don’t care if a company is healthy, or doing well by their employees, all the stock markets care about is “line go up”, and it’s sucking the working class dry.
Regulation can avoid some of the worst negative effects of capitalism. Lawmakers can set a minimum wage, rules for working hours, paid time off, health and safety, environmental protection etc. Those rules are often written in blood. Literally, because if not forced by law, capitalism has no reason to care about your (worker or customer) life, only profits.
Oppose that with some ideas of socialism. aka. “The workers own the means of production” This is something some companies practice, Worker cooperatives are great. The workers are the owners, if the company does well, all the workers get to enjoy the profits. The workers actually have a stake in their company doing well. (Technically if you’re self-employed you’re doing a socialism) Well, that’s utopia and probably won’t happen, maybe there’s a middle ground.
Unions are a good idea. Unions represent many workers and can negotiate working conditions and pay with much more weight than any individual worker can for themself.
Works councils are also a good idea, those are elected representatives of the employees of a company. They’re smaller than trade unions, but can still negotiate on behalf of the employees of the company. Sometimes they even get a seat on the board of directors so they have a say in how the company is run.
That’s how you can have capitalism but also avoid the worst effects of treating workers and customers badly. Anyway, unchecked capitalism is not a great idea. The USA would be an example of such unchecked capitalism.
Especially when you know that money equals power and the wealthy can buy their politicians through the means of “campaign donations” and now the owners of companies control the lawmakers who write the laws these companies have to abide by … From Europe we look at the USA and are mortified, but let’s not make this even more political.
I’m really not trying to be a dick, but uhh… Look around? The world is literally on fire and efforts to put it out or even to stop pouring more gas on it are put down at every turn by capitalists in the never ending pursuit of more money for it’s own sake.
Let’s start here: are you a capitalist? Do you own any actual capital? I don’t mean your own house or car, that is personal property not private property or anything resembling the means of production.
I ask because many people consider themselves capitalist when really they are just workers who happen to own a bit of personal property, and they make themselves essentially useful pawns for actual capitalists.
And, if you’re not an actual capitalist, why are you so pro capitalism?
That’s way too simplistic. It’s not just big corporations that block each and every measure to mitigate climate change.
Ask a small home owner, or car owner, why they are against climate change measures. They will point out that their life would need to change, and that’s why.
Climate is fucked primarily because people are unwilling to look around the next corner. That corporations are the same is more a property of them being comprised of people rather than capitalism per se.
Capitalism would work with wind and solar parks just as well as with coal.
I’m really not trying to be a dick, but uhh… Look around? The world is literally on fire and efforts to put it out or even to stop pouring more gas on it are put down at every turn by capitalists in the never ending pursuit of more money for it’s own sake.
Well I mean it’s unclear to me that we’re much worse than previous points in history. I’d rather have the climate crisis over the nuclear one, or either of the world wars, or live under a feudal system where I’m owned by the local lord in his castle.
I sympathize (and agree) with the belief that the current system isn’t serving everyone, much less serving everyone equally. But the world is a complicated thing and we’ve got >7 billion people to feed! I think we should be very careful before deciding “yeah it’s time to tear down the existing systems and hope that there are better systems out there”. It’s easier to make things worse than to make things better.
Let’s start here: are you a capitalist? Do you own any actual capital? I don’t mean your own house or car, that is personal property not private property or anything resembling the means of production.
I guess? I’ve wanted to start my own business a couple of times. I’m a programmer, so I’ve toyed with the idea and done some research into creating a few apps which I believe people would find useful, and might pay my bills. I don’t own a house or a car-- I live in an apartment in a mid-size US city.
I ask because many people consider themselves capitalist when really they are just workers who happen to own a bit of personal property, and they make themselves essentially useful pawns for actual capitalists. And, if you’re not an actual capitalist, why are you so pro capitalism?
I’m guessing you’d consider me a pawn, but I don’t. I fit your description of owning a bit of personal property, and being a worker. I’ve worked for some large companies in the past which are supposedly the “actual capitalists”. But I promise they don’t give two shits about social good (or social bad). They are just desperately trying to make products that people want to buy. In my view, it’s a pretty good system which constrains huge organizations like Apple to making devices, when the alternative is that they could be setting up their own governments.
Well I mean it’s unclear to me that we’re much worse than previous points in history. I’d rather have the climate crisis over the nuclear one, or either of the world wars, or live under a feudal system where I’m owned by the local lord in his castle.
You’d rather have the climate crisis as it currently stands. I think you’ll change your tune on that in coming decades but by then it’ll be far too late to actually do anything about it. You’re also more insulated to it’s effects than many millions of people around the world who are already losing their lives, homes, livelihoods, etc and this is only a sniff of what’s to come. Also, peasants in feudal times on average had more time off, made more money comparatively, and were able to travel more (yes, even serfs) than your average American currently. The chains just look a little different, they aren’t gone.
I sympathize (and agree) with the belief that the current system isn’t serving everyone, much less serving everyone equally. But the world is a complicated thing and we’ve got >7 billion people to feed! I think we should be very careful before deciding “yeah it’s time to tear down the existing systems and hope that there are better systems out there”. It’s easier to make things worse than to make things better.
We’ve got 8 billion people to feed and are doing a terrible job of it. Take under half of Elon’s wealth alone and you could feed the entire world, yet instead we laud these modern day dragons for their “success,” instead of slaying them for the good of the people. It’s easier to make things worse for you, than better for you. Billions of people currently suffering terribly for the profit of others would vehemently disagree. Also, just because the unknown is uncertain doesn’t mean it should be feared. We know capitalism isn’t working for the planet itself, yet people would rather stick to it because it’s enriched a small fragment of humanity. You happen to be in the side of the boat that isn’t currently underwater, but make no mistake that the water is pouring in.
I guess? I’ve wanted to start my own business a couple of times. I’m a programmer, so I’ve toyed with the idea and done some research into creating a few apps which I believe people would find useful, and might pay my bills. I don’t own a house or a car-- I live in an apartment in a mid-size US city.
You are not a capitalist.
I’m guessing you’d consider me a pawn, but I don’t. I fit your description of owning a bit of personal property, and being a worker.
You are a worker, so why look out for the interests of an entirely different class that doesn’t do the same for you?
I’ve worked for some large companies in the past which are supposedly the “actual capitalists”. But I promise they don’t give two shits about social good (or social bad). They are just desperately trying to make products that people want to buy.
Therein lies the exact problem: profit is the only motive. And to get profit, capitalists have shown they are willing to do everything, damn the consequences to others, to society, to the planet. Climate change isn’t a whoopsie, starving, desperate people aren’t a whoopsie, train derailments aren’t a whoopsie, even most wars (every American involved war since WW2) are not a whoopsie. They are all the predictable results of capitalists choosing to rake in more profits at the expense of you and I.
In my view, it’s a pretty good system which constrains huge organizations like Apple to making devices, when the alternative is that they could be setting up their own governments.
Why would they need to set up their own governments when they control ours? How exactly are they constrained? Google is arguably more powerful than most nations’ governments. Sure, most of that is soft power, but if trends continue it won’t stay soft for much longer.
It’s not illogical to be pro-Capitalism while not owning any “means of production” if it means you still have better outcomes.
There are no true Capitalist countries and no true Socialist countries. It’s not even a spectrum; it’s a giant mixed bag of policies. You can be for some basic capitalist principles (market economy, privately held capital) and for some socialist policies (safety nets, healthcare) and not be in contradiction with yourself. There’s more to capitalism than the United States.
I think OP was seeing a lot of “burn the system down” talk. Revolutions aren’t bloodless, instantaneous, or well directed. Innocent people will die and generations will suffer. It’s stuff only the naive, the malicious, or the truly desperate will support. And if you’re here posting it on the daily, I don’t believe you’re that desperate.
I’m pretty pro-capitalism myself,
No, Clyde - lick the boots of parasites if you want… but you are the one that needs to justify your beliefs. We who have seen through the fairy tales have no need to justify anything to the likes of you.
Ehh it’s probably mostly kids who have been handed everything to them their entire life and when they realize they need to start providing for themselves after their parents kick them out of the basement they get mad because they don’t want to do anything but play videogames and get paid. They don’t realize the only reason they have videogames to begin with is because of capitalism.
