The economy we have today doesn’t bear even a remote resemblance to capitalism. It is actually state-corporatism, or facism. From Paul Craig Roberts at paulcraigroberts.org:
Once upon a time America had a capitalist economy. Bank deposits were used for loans that expanded productive ability. America produced its own goods and grew its own food. America’s currency was backed by gold and inflation was nonexistent. New technology brought into play by new investment improved the productivity of labor, and living standards rose. Profits were plowed back into improved methods and expanded production.
Governments subsidized social infrastructure and education. This lowered the cost of transportation and, thereby, the cost of production and prices, and it provided industry and manufacturing with an educated work force. As an instate resident, my annual tuition at Georgia Tech came to about $450.
This highly successful way of running an economy was replaced by an entirely different economy, the one we have today. Who is responsible and how it came about is a story that can be told later but not in this column.
In the current economy bank loans are not made to finance new investment in new plant and equipment. They are made in order to finance the purchase of existing assets. Loans are made to purchase existing companies, load them up with debt, and sell off their assets. Loans are made to finance a buyback of a company’s own stock, thus raising the stock price and resulting in executive and board “performance” bonuses. Loans are made to finance real estate purchases and thereby drive up the values of real estate, thus raising the cost of housing.
The new economy is financialized. It lives off of interest on debt and fees, the plunder of public assets via privatization, and exploitation of third world economies via dollar-based bank loans that can only be repaid by the indebted country selling its public assets to its American creditors, usually at rock bottom prices.
“Greed is good.”
Gordon Gecko
Marxist Materialism brings hell on earth which is what comrade Karl wanted in the first place.
O/T-Under the Radar stories, illegals voting in GA and other places, National ID is the goal?
The lovely judge Aileen Cannon assigned Das Heimat Schutze election integrity case regarding esteemed CPUSA (D) party member comrade kommissar Mayorakas and others.
FDA gives emergency authorization for Bird Flu LARP, all from the past couple of days.
One foot in the forest, just in case it goes Leave The World Behind 2025.
At least you’ll be Free there.