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Charles Hugh Smith is a socialist/statist...believes that "fair" government action and enforcement of law will solve this "crisis of capitalism" and bring back the 1980s.
Anyway - how can this be a "crisis of capitalism"? We don't even HAVE capitalism anymore...
He confuses the corruption of capitalism with capitalism itself. Other than just running with the herd and not thinking about it, I don't understand why he fails to separate the two.
Capitalism was born in the minds of men.
All men are corrupt.
Capitalism is better structured to put brakes on said corruption, but was fatally flawed from the beginning by being thought up in the minds of corruptable men.
Ergo, the corruption of capitalism was a fait a compli, hence the fact that you cannot seperate the two.
Yes, Jumbotron. On the other hand, governments are not thought up in the minds of corruptible men. Only honest, do-gooders go to government, after all, where they then work to consolidate power to force others to obey their honest, omnipotent strategies for a better society.
The problem with the word capitalism is that it's used interchangeably with the free market. The blind-spot among many is that there is free market capitalism, there is parasitic capitalism, and all sorts of other forms thereof.
Capitalism is about the efficient management of resources to derive profits. Capitalists will pursue what is necessary to achieve that goal.
If markets are free and open, capitalism will duke it out on those terms, serving the economy (and all men) better / more fairly than any other economic system.
If power is consolidated in the hands of government, and available to be used to achieve efficiencies in business, all bets are off. The capitalist will do what it must to seize the advantage in its direction. If it does not, others will fill the void. Rather than achieving efficiencies in allocating scarce resources, it monopolizes, rips the necessary fabric of honest price discovery, and becomes an co-agent of the State. That's what we have now.
The delusion of soclialistas is that they actually believe they can perfectly run those levers of power in a way that will ring victory true. They believe that by further distorting the market through intervening in the price of labor, they are helping.
But centralized solutions in the end are always authoritarian (quasi or more direct) in the end, and it is always with Procrustean consequences that it achieves its ends. Moreover, it derives its very sustenance from the wealth creators, so they must always have a bargain with capitalism of some sort, or they have no wealth to redirect to their social pipe dreams. But their lover of forcing others into their one-sized, fits-all mold of "fairness" requires the end of the gun to get compliance out of most people, especially the free thinkers and actors, so they need that all Powerful government... and there you have your Parasitic Capitalists and Socialistas being necessary bedfellows, and the opposite side of the same authoritarian coin.
http://mutualist.blogspot.comMutualist Blog: Free Market Anti-Capitalism
http://www.mutualist.orgMutualist.Org: Free Market Anti-Capitalism
http://www.mutualist.org/id4.htmlTHE IRON FIST BEHIND THE INVISIBLE HANDCorporate Capitalism As a State-Guaranteed System of Privilegeby Kevin A. Carson
http://c4ss.org/Center for a Stateless Societybuilding awareness of the market anarchist alternative
Will never find me defending parasites -- corporate, capitalist, socialist... You name it. Produce something of value (that people actually want without a gun pointed at them), exchange with others consent (no fraud, lies, deceit). And while you do it, don't go pissing in the drinking water, pollute our food supply, etc.
Aahhh....the "FREE" market.
As markets only exit by, for and through the operation of....people and people are not ruled by logic, science, or the constructs of utopian ideas ( even if those ideas were constructed through logic and science ) , but are ruled by emotions and the psyche (which is studied through the lens of the pseudo-science at best of pyschology) then there really is no such thing as a free market.
Only a market controlled by either lemmings, psychopaths and people who think they know the diiference and are above it but are nontheless inlfuences if not directly affected by either of the aforementioned two.
You are correct that capitalism and the free market are often melded together incorrectyly. It is also correct to say that it is irrelevent in reality.
I am not pissing on either one to only present my own plan or support a competing plan such as socialism or communism. After all, their failures are not only legend, they are indeed ongoing and in full view.
But let's be brutally honest. Capitalism and the free market are also failures, not because of their hypothesis, but by the people that make them exist in the first place.
We've barely ever had a free market, and it only brought to creation the highest living standards and wealth ever known to man. Nothing comparable has ever come to existence through other competing systems for thousands of years.
To have a truly free market, you must have true property rights, the right to 100% of your own body / labor (present, past (as in your savings) and future) unencumbered by those who always profess know better, etc. and therefore insert their own claim (with a gun) to your person.
That a truly free market is imperfect is to simply acknowledge that man is too. But it is the only system that allows for the free will of men to seek their own best interest through action and effort consensually. To expect anything better in another system is just as Utopian, so why not simply settle with it?
Because power hungry and the ignorant won't accept it, and so this system will collapse under its own weight as the powerful corrupt the marketplace for their own benefit, and the ignorant chain themselves for the benefit of the powerful, while cannibalizing their fellow man under the misguided belief that its me or them.
Perhaps in 500 years another experiment in freedom and liberty will arise from these ashes. But not until this ignorance is sorely beaten out of the voting population by the consequences of their own voting stupidity.
Capitalism is about the efficient management of resources to derive profits.
And it is not done in present days?
If US citizens have not derived profits, one wonders what they have done so far...
But centralized solutions in the end are always authoritarian (quasi or more direct) in the end,
The institution of slavery was centralized at first in the US?
Why do US citizens need to create fables like that? Oh wait, that is because they could not pretend make any sense otherwise.
"The institution of slavery was centralized at first in the US?"
Huh? You've composed a straw man of your own making by extrapolating a position from my words that I never stated.
As for your point, individuals can be authoritarian at all levels to their fellow man. And, yes, slavery was ultimately protected and defended by min-groups of authoritarians within the colonies, ultimately enshrined in larger and larger governments. So what's your point?
Beyond that, my point was to state that central planning cannot have those who disobey their authority, and they'll jail you or shoot you if you insist on being persistent about maintaining your individual right to say "no thanks" to their meddling ways.
"If markets are free and open, capitalism will duke it out on those terms, serving the economy (and all men) better / more fairly than any other economic system."
Actually, if markets are free and open, they will quickly be taken over by the first big bully to see an advantage in doing so and they will no longer be free.
The media propaganda polarizes everything into "pure free market capitalism" vs. "total state control socialism", as if there's nothing in between.
Governments, in a truly representative democracy, are accountable to the people who elect them. Of course, this is not what we have now . Large corporations and ultra wealthy bond holders who own the government and the people are not accountable to anyone. So let's deregulate everything even more in the name of capitalist efficiency to make the markets even more "free", and let our corporate masters get a way with murder and finally finish us all off. Hey, at least then the government won't have any control, as if it does now anyways. We'll be free of government control, but slaves to the elites.
You lay it out quite well, Mark.
I'm sure there will be a lotta guys enlightened today!
It's like arguing religion or democrat-republican politics or the hottest chick.
Lotsa heat, little real substance. Even stranger, the two things seem inversely related.
And it will be the same tomorrow. Thank the American Mass Education Machine.
"Actually, if markets are free and open, they will quickly be taken over by the first big bully to see an advantage in doing so and they will no longer be free."
In so far as their is a mechanism of force that enables the bully to monopolize the playing field... well, yes -- that's a given. For that, you need a strong, centralized power that plays at the expense of individual rights / freedoms.
That ain't a FREE MARKET, though.
"The media propaganda polarizes everything into "pure free market capitalism" vs. "total state control socialism", as if there's nothing in between."
I don't speak for the media, and that's a distinction that's worth keeping in mind. However, I think the media makes the far bigger mistake of using examples of corporatism as arguments against a truly "free market", using the latter term as a misnomer for what is really corporatism / parasitic capitalism which are highly dependent upon state collectivized power for its success. Both hate freedom and THE FREE MARKET which enables individual actors to escape their clutches / out-compete their inefficiencies.
Moreover, I think it behooves us to assign and debate a value system, good and bad, to the outcomes of the purest forms of each. I would argue pure free market = good because in its pure form it respects the individual right to consent / say no thanks, creates the highest standards of living. In such an environment, state power's only legit use is to protect rights to say no thanks.
Pure socialism (which implies pure authoritarianism for enforcement) = bad. Where the market fails is where it is burdened by socialism, not the other way around.
As for the gradients in between you blame the media for ignoring, what is there to debate about them other than while half cancer (socialism) is maybe better than full cancer, half cancer still sucks and should be avoided at all costs.
"Governments, in a truly representative democracy, are accountable to the people who elect them"
Yes... and can be totally disrespectful to the rights of minorities, which is why it is crucial to have a representative democracy that enshrines the protection of individual rights to consent / say no thanks to the meddling of others, be they individuals, corporations, or governments - including their own! You can have full authoritarianism in a rep. democracy, or full freedom. Like a hedge fund, the contents therein can be completely toxic, leveraged subprime / PIIGS waste, or pure gold.
"Large corporations and ultra wealthy bond holders who own the government and the people are not accountable to anyone"
Why? Because individual voters have allowed for the centralization / cartelization of freedom and rights. You and I cannot simply say to these bastards, "no thanks!" in any meaningful way. Entrepreneurial competition is legislated into shackles, and we're stuck with what's left. That's not a free market. Taht requires a powerful BIG GOVT. to enforce.
So let's deregulate everything even more in the name of capitalist efficiency to make the markets even more "free", and let our corporate masters get a way with murder and finally finish us all off.
That's a royal bait and switch you've pulled there. The answer is to disarm the power and return it to the people, not by electing Hope pimps who keep putting new shades of lipstick on the same old PIG that is centralized government power, as if the latest fashion pallet of lipstick color will somehow turn a bloated sow into a worthy bride. That's why nothing changes from Bush to Clinton to Bush II to "Hope" Obamessiah.
Hey, at least then the government won't have any control, as if it does now anyways.
The government has the exact control those in power want it to. Its right there in front of your face, yet you defend it?
We'll be free of government control, but slaves to the elites.
Righhhht..... What planet are you living on? That's exactly what you have right now!?!??
What we need is the people to stand up to cartelized / centralized power. The only legitimate purpose of government is to protect our rights to consent and say no thanks when it comes to our bodies, labor, and fruits thereof. That implies strong property rights.
Otherwise you're talking in circles, about hating corporatism but loving big government to protect you from corporatism? They're the opposite side of the same damn coin. The answer is more individual freedom and rights, which implies consensual / free markets, not more power for the elite to rape you and me over the barrel time and time again.
If that applies to capitalism, then it applies trebly to socialism, where economic power is even more centralised and thus even more amenable to manipulation.
But you see....there are ALWAYS capitalists in every system. It is the distribution of capitalists that makes a system different.
Jefferson warned of capitalists over 200 years ago when he proclaimed that bankers and finaciers were more a threat to the new republic of America than a standing army.
Why. How do standing armies get financed, armed and fed? By those that control capital....hence....capitalists. However, back then the capitalists were primarily in the king's court.
Now.....like a burst cyst....their bacterium have spread to the entire world. And America led the way.
I think we might need to define terms here. It seems to me you're getting lost in equivocations. How can you blame 'capitalists' for our current situation if capitalists exist in every system?
It's true that "there are ALWAYS capitalists in every system", in the sense that there are always people who control excess capital, no matter what the 'system' is. The important distinction between systems is: who are those people? In a free market system, a capitalist is anyone who can persude other people to give them their excess capital to use in entrepreneurial endeavors. In a fully socialist system, the capitalists are those within power structures imposed by government diktat - ie, coecion.
If we examine the situation in the West, capitalists are a mixture of both - and our present predicaments stem from fiat currencies, and banking cartels granted money-creating monopolies by governments - ie, government-appointed capitalists.
The problem isn't capitalism. The problem is the State meddling in capital formation and price discovery.
"The problem is the State meddling in capital formation and price discovery."
The state is owned by the bondholders, it is held hostage just like we all are.
So your answer is to make the State more powerful to regulate the corporations... who are the bond holders... who run the state... who will regulate the corporations... who are the bondholders... who run the state....
For the love of F@!k.... No wonder the nation is racing 100 mph over the cliff.
Hits the nail on the head. Smaller government. Decentralization. Re-industrialization. These are the real solutions. We also need to return to a money that is not backed by nothing, allowing bankers and politicians to run wild. The gold standard has its flaws, but having governments spend money created out of thin air, and having tax payers pay interest on the debt is surely much MUCH worse.
What I believe in is trial and error. And the thing with trial and error, you have to know when your trial has failed! Our monetary system has failed, hence we need to try something new, not just keep doing what we are doing! Currency devaluation, money printing, is not the answer.
There is no "corruption of capitalism". It is statism that is corrupt, the capitalism is disappearing.
The Corruption of Economics says it best...
I totally agree Kredit!
Smith is a socialist. Like all statists, he likes to blame capitalism for the failure of his beloved government policies. Capitalism--which we haven't had in a long time--does not deserve the blame for:
1) central planning of money, credit, interest, and discount
1b) falling interest rates for 30 years
2) moral hazard "insurance" such as FDIC, Fannie, Freddie, Ginnie, FHA, etc.
3) other distortions such as community reinvestment act
4) ponzi programs such as SS and medicare
5) etc etc etc
We have a perfect world for Jeff Immelt: a "partnership" between government and business working together. Who are they working against? Does the government's power to use force make this unfair?
You are correct. You can not blame capitalism for what we now have.
Just as you can not blame Marxism or any other "ism".
You blame the people who thought the "ism" up and the people who operate by, for and within that "ism".
All utopian ideas are great on paper.
Until we get a hold of them.
>All utopian ideas are great on paper.
1+1=3 is not great on paper, because it is not true.
Socialism (the abolition of the market economy) is not great on paper because it suffers from the economic calculation problem as shown by Ludwig von Mises. Not even angelic beings could create a socialist utopia.
For the masses who value life over death, freedom over slavery, and abundance over poverty, socialistic interventions are not great on paper because they are demonstrably incompatible with those values.
First of all....do you know any angelic beings. IF you do not then how do you know what is possible or not?
Second....how's this capitalst thingy working out for you lately. How has it worked for the billions of people who's resources we extract for pennies on the dollar ( a debased dollar at that ) leaving them with either ruin or the false sense of a new found propsperity which will vaporize once we extract all the value we can at a cost that is conducive to do so?
The only difference between any of the utopian ideas is the time it takes to fail and how much delusion one gets to build up in one's self before that idea implodes.
Von Mises is neither god nor prophet....simply a man who came up with a good hypothesis at a point in time, influenced by the realities and the evidence of his age
These times are different. The reality has change. We have plenty of evidence now since Von Mises that capitalism cannot survive the corruption of mankind and they we were never nor will we ever be free from said corruption...not within ourselves or from those inflicted with it.
Therefore.....freedom, while not overrated, is certainly misunderstood.
That is laughable. More please.
1+1=3 is an utopia now?
The US as massive producer of cheap propaganda is not, though. It is very real.
"Ludwig von Mises. Not even angelic beings could create a socialist utopia."
Ludwig von Mises was a preacher, a dreamer of magical fantasies no different than communists. Get off the artificial left/right paradigm the media had created and spoon fed you to distract you from the real sources of oppression.
Mark Isn't time for you to get to class your to continue your socialist inculcation? Maybe today you'll get to study about how Harriet Tubman was a more important figure in American history than Thomas Jefferson.
I am not a socialist, I am a mild capitalist. I was actually "schooled" as a conventional capitalist but I have since rejected that as the pure fantasy that it is. So sad that these days anynone who is politically center is labelled a socialist. I guess in comparison to today's radical right wing extremists, everything is left wing, and therefore part of the catch-all "socialist" steroetype invented by them to hide their ignorance of the complexities of the real world outside Ludwig Von Mises' imaginary thought experiments. Well, you know what? In comparison to communist ideology I am a right wing free market capitalist.
"We have a perfect world for Jeff Immelt: a "partnership" between government and business working together"
Reminds me of the line from Godfather II, Hyman Roth says "Here in Havana we have what we always wanted, real partnership between business and government!"
That was Cuba when it was run by Mobsters, just before Castro's time.
What a moronic statement.
What was the superstructure used by the government (please remember, a representative governemnt of the people, voted into office and revoted into office again and again by....the people) and the businesses that have courted such liasons to create all of your 5 bullet points.
Once again,.....no utopian idea survives the corruption of mankind.
Lose the religion my friend. It's only useful in the realm of the gods but only serves to blind you to the reality of the failure of your ideaology.
You sound exactly like the defenders of Communism: "Communism hasn't failed, because what we have now isn't Coumunism."
The fantasy capitalism that exists in your mind, exists only in your mind. It does not exist now. It has never existed. It never will exist. Unless opposed by an equal or stronger force, capital will always accumulate in fewer and fewer hands and then will proceed to corrupt the system to further concentrate capital. The irony is that Capitalists do not want Capitalism. And since they have the money, they have the power to make sure they don't get Capitalism.
Capitalism sows the seeds of its own destruction. You cannot point at the wreckage of Capitalism and say "that's not Capitalism" any more than you can point at a train wreck and say "that's not a train."
Amen to that, brother.
In fact, on CNBC the other day, I saw with my own eyes and heard with my own ears, the host asked the CEO of Zillow.com, during an interview about the upcoming IPO of Zillow, how he and Zillow.com was going to put up "barriers of entry" to competitors, like Trulio and Google and Yahoo.
"Barriers of entry".
Code for...."How are you going to monopolize your market so you can secure pricing power?"
>"Barriers of entry".
>Code for...."How are you going to monopolize your market so you can secure pricing power?"
Such monopolizing per se is a component of free markets. As a good example, you might try to create "barriers" by adding security features to your product to thwart reverse engineering. Nothing wrong with that.
But, free markets are incompatible with aggression. For example, obtaining a patent and using it as a legal bludgeon to expropriate property from competitors does involve aggression and it ultimately boils down to the threat of sending armed sherrifs and also preventing other people from using their own property. It's wrongful acts of aggression like this that hamper the market.
And more semantics...
"But, free markets are incompatible with aggression."
Nice thought in theory....but who is above corruption to properly define aggression?
One man's aggression is another man's proprietary security feature to thwart reverse engineering.
Now you involve lawyers, judges and politicians,
Right......that'll work in the real world just dandy LOL !
Yes, but 'capitalism' has failed for the same reason all the various communist systems failed; its suppression of price discovery.
ie, political systems fail in proportion to their distance from free-markets, not in proportion to their distance from their (supposed) ideal.
You cannot point at the wreckage of Capitalism and say "that's not Capitalism" any more than you can point at a train wreck and say "that's not a train."
Save, of course, you are a US citizen. US citizens can and will deny anything and everything. I have so far found out nothing US citizens can not deny. If someone has...
All those US citizens are for the most unable to state what they had capitalism. Notice sentences like "we did not have capitalism for long now"
So when was there capitalism? They cant and wont tell.
Denial, more denial, and even more denial. That and cheap propaganda are certainly not scarce in this US world order.
Then they'll deny that they denied it in the first place! Those US Citizens and all those Americans, especially the North Americans and the South Americans and sort of the Central Americans, oh I can't stand how they deny they denied things.
If you cant stand denial in this US driven world, then life is tough on you. Denial and cheap propaganda, you bathe in them, you'll drown in them.
I won't deny that you're barking mad! That'd be real denial!
Because capitalism itself is simply just another utopian idea, no better or worse than Marxism, that can simply not stand the inate and ireevocable corruption of mankind,
If capitialism has any redeeming qualities above and beyond Marxism is that it has corralled said corruption for a longer period of time.
However, the proof is in the pudding. It cannot stand the inate human corruption in us all.
Careful, there: that's like saying Christianity and Buddhism are just religions, no better or worse than each other. Oh, wait...
Except, I have the possiblity of going to hell for eternity if I follow the wrong religion.
I follow the wrong utopian idea it's just until I die.
A flyspeck of time compared to eternity.
Since you won't know if you picked the right one until it's too late to change, why not just pick one now that doesn't believe in hell.....then just relax & keep your karma right.
Economics is just secularized religion. Priests is priests.
Now that I can agree with. That is nearly a metaphysically true statement Spas.
spas, those postal cuts not looking so easy...
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