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Home Forums General Discussion is capitalism the problem ? Re: is capitalism the problem ?


Yes, I totally agree. We do not have a free market economy. Interestingly, the idea that the business cycle is inherent in industrial capitalism is an idea of mainstream Keynesian economic thought; It is also an idea originally propounded by Marx. It should not be any surprise then that solutions for ‘fixing’ the ‘economy’ are socialist in nature, which only serve to further pervert the market place. Remember that all the market is is consenting adults engaging in voluntary mutual exchange. (I know that was redundant but I wanted to include all those connotations). Beware those who call for the restriction of the free market, they are typically looking to restrict the little guy.

There is another theory as to the origins of the business cycle and the turmoil and poverty it creates, and that is: at the same time as the industrial revolution came the ‘innovation’ of fractional reserve banking, and the inflationary monetary financial institutions which it allows. This insight is from the Austrian school of economic thought.

Inflation grants purchasing power to those who get fresh money and credit first: Wall St, international banking and corporate interests, while decreasing the purchasing power of those who get to use the money last, the poor, the middle class, the small businessman.

It is interesting that the New Deal was mentioned in the previous post. During that era, in an effort to recover from the Depression, the Roosevelt administration was putting together the National Industrial Recovery Act, which sought to cartelize all industry sectors, using the Federal Reserve System as a model. This move to cartelize was lauded by big business who were of the mentality that their ‘profits were unprotected’. duh….the free market empowers the consumer to choose, there is no, and should not be any, ‘guarantee of profits’. The idea sought to have self-governance in industry, but lead to government enforcement of cartel rules as there was no policing mechanism available privately that could overcome the free market mechanisms (me and you).

Capitalism is not the problem. It is inflationary monetary policy, government enforced oligopolies, selective subsidies and punitive taxes.