Capitalism is not the problemsteemCreated with Sketch.

in #oligarchy7 years ago

Capitalism is often presented as the big problem by the media. People seem to take for granted the prosperity that was achieved embracing capitalism and forget about the horrors that can be seen in the still existing anti-capitalist countries.

There are undoubtably a lot of problems, almost wherever we look. But these are not the consequence of too much capitalism as is being told. In the contrary they are a product of corruption in capitalism and the solution is a return to basic concepts of free markets.

Who wins in a game where one player makes the rules?

Capitalism is a system of game theoretical guaranteed stability. Bad actors have to compete among themselves, creating prosperity while doing so. There is no central authority and all prices are found in a decentralised manner taking into account the offers and bids of all market participants. It is a way to promote voluntary and peaceful human cooperation.

Also capitalism was not invented by humans, it does not need people enforcing it, it just naturally appears unless people try to suppress it by force. This is why socialists always end up suppressing the population, because this is the only way to keep the naturally appearing markets down. And this is also why the present 'liberal' oligarchs are tightening their controll of the population.

What we see in todays economy is far away from free capitalism. Instead we have overly regulated and controlled markets. Regulation can be good and markets will always self-regulate to some extend. But we are seeing central regulation that is nothing but arbitrary market interference. And of course it is massively exploited.

While many think that regulation is only a minor problem, it fundamentally breaks the game theoretical foundation of capitalism. Free capitalism has a nash equilibrium of decentralised controll and offering services that fulfil customers demands at a minimum price. As soon as you introduce a central party, the nash equilibrium changes to trying to take advantage and controll that central authority.

Regulations may seem to target all market participants equally, but often conforming to them has a large cost. And this cost benefits larger players while being prohibitive for small competitors. The large ones dont even pay the price as they can push it forward to the consumer. And it becomes even worse, the large players often give advise (or outright decide) on which regulation should be imposed. Of course these end up not affecting the dominant players, while new innovation is made illegal.
This can be seen everywhere in our markets. All of the big players have huge lobby groups that are pushing legislators to distort the market in their interest.

Then there is another trick that can be played. Legislators can push for new laws that make it necessary for others to buy their product. When this works out it guarantees a huge profit for the dominant companies. An artificial demand is created that the markets cannot meet. Prices shoot up while customers are forced to buy at these prices.

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Most of the decisions made by the bureaucrats only seem logical on the surface. Looking deeper almost everything is corrupt; dominant market participants just pushing their own interests. The consumer in the end pays for the madness. Getting bad and expensive products because outdated companies are protected from competition by tight regulation and markets cornered by laws. The state is not the regulator of companies in the interest of the people, it is the protector of an established elite imposing their will on us by the threat of force.

Nowadays most profits are not made by selling quality products, but directly derive from market manipulation via government action. Money and political power are so mixed that they become essentially the same thing. An oligarchy that extracts all value from our productivity and funnels it upwards.

Instead of playing a fair competitive game our markets are like playing a game with an unstable 8 year old kid that invites new rules along the game and throws a fit when things dont look well. Guess who wins that game ..

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Agree.

What are mechanism to protect earth and sustainability from markets?

Posted using Partiko Android

This is the most difficult question. Democracy has demonstrated again and again that it is not able to protect nature. Capitalism also does not care for the planet.

There are some hopes:

  • Technological progress tends to create cleaner alternatives and pollution may go down automatically as old technologies become outdated
  • A departure from debt based money will remove artificial pressure for growth
  • People that do not have to struggle to survive can spend some time and resources to privately get engaged
  • Reducing public controll over land means that more land will be protected by self-interest (most polluted water is public water!)

But all of these are not really satisfactory. I think what we need is a new concept. Just as we own our bodies and this is inalienable I think that every human has an inalienable right to use and benefit from the resources on a part of our planet. The concept of private property is great for human created items, but questionable for the planet itself. We need a distributed shared ownership. Then protecting the planet becomes protecting the own self-interest.

But there are huge problems because to protect the earth we still need a central trusted party. Until we have the ability to decentralise this I think there is little hope. And we are at least 20 years away from that.

I think capitalism and its infinite economic growth is a really big problem..
It also can result in a generation difference..
The actual and the future youth could think that the old are consuming the youth's (or even the unborn's) future.. (more about that in one of my last articles - translate it to english using deepl.com)

Technology didnt help us to save the planet.. it even destroyed it more (for example plastics)... plastics are just too good. Too good just to make it just to throw it away later.
Especially because plastics need waaaaaay too long to decompose.

I'm hoping that everything which is plastic now will be out of fungi in a few years..
You could just throw your fungi bottle or packaging after drinking and eating away in nature.. :)

the infinite growth is not a feature of capitalism but of the monetary system that underlies our current economy. If we get rid of that things may become a lot better. Still probably not enough.

Before, I used the term capitalism to refer to free market, this mainly because it was a terminology that I adopted from Von Mises, however, it was a misunderstanding on my part, he only used capitalism to refer to a system of exclusively private property, in as opposed to a system of exclusively public property, so there is a difference between capitalism and free market, both are not the same. The current developed countries, are capitalist countries, this does not mean that they practice the free market, but that the capital, referring to the means of production, are privately owned, and only that.

Interesting, when I refer to capitalism I always mean free markets.

But how can full authority over your own private property lead to anything that is not a free market. Or stated differently, if I cannot sell it as I want then is it really my property in the first place?

Well, under two conditions, it is possible that despite the existence of private property, the result is not a free market. The only way that free market can exist is if no legislation affects the commercial exchange between the parties, which in this centralized world is inconceivable, if the United States eliminates all its legislation today, what we would see is not a free market, but the monopolies of Russia, China, Europe and other countries take over the US economy. That is, the free market is almost as utopian as communism, it would need a world revolution, not just local changes.Unless, of course, efficient legislation can limit the ability of the individual on his property to counter what I mentioned, consequently, a free market could be achieved under a scenario of autarky or a lot of regulation in terms of trade with other nations.

Can economic protectionism be a protector of the free market?

??? !!!! Look Venezuela, North Corea, Cuba... I'm surprised this question exists yet. With the internet ... incredible. There are so many evidence showing there isn't anything better invented than capitalism...

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