Economic theory teaches that free price and profit movements ensure that capitalism produces the greatest welfare for the greatest number. Losses indicate economic activities where costs exceed the value of production, thus investment in these activities is curtailed. Profits indicate economic activities where the value of output exceeds its cost, thus investment increases. Prices indicate the relative scarcity and value of inputs and outputs, thus serving to organize production most efficiently.
This theory doesn’t work when the US government socializes cost and privatizes profits as it has been doing with the Federal Reserve’s support of “banks too big to fail” and when a handful of financial institutions have concentrated much economic activity. Subsidized “private” banks are no different from the former publicly subsidized socialized industries of Great Britain, France, Italy, and the former communist countries. The banks have imposed the costs of their incompetence, greed, and corruption on taxpayers. Indeed, the socialized firms in England and France were more efficiently run and never threatened the national economies, much less the entire world, with ruin as do the private US “banks too big to fail.” The English, French, and communists never had to print $1,000 billion dollars annually to save a handful of corrupt and incompetent financial enterprises.
This only happens in “free market capitalism” where the capitalists, with the approval of the corrupt US Supreme Court can purchase the government, which represents them and not the electorate. Thus, the taxation and money creation powers of government are used to support a few financial institutions at the expense of the rest of the country. This is what is meant by “markets are self-regulating.”
Several years ago Ralph Gomery warned me that the damage done to US labor by jobs offshoring was about to be superseded by robotics. Gomery told me that the ownership of the technology patents is highly concentrated and that breakthroughs have made robots increasingly human in their capabilities. Consequently, the prospect for employment of humans is dismal.
Gomory’s words reverberated with me when I read RT’s February 15, 2014, report that computer and robotic experts at Harvard have constructed mobile machines programmed with the logic of termites to be self-organizing and able to complete complex tasks without central direction or oversight.
RT doesn’t understand the implications. Instead of raising a red flag, RT gushes: “The possibilities are vast. The machines can be made to build any three-dimensional structure on their own and with minimal instruction. But what is truly staggering is their ability to adapt to their work environment and to each other; to calculate losses, reorganize efforts and make adjustments. It is already clear that the development will do wonders for humanity in space, hard-to-reach places and other difficult situations.”
The way the world is organized under a few powerful and immensely greedy private interests, the technology will do nothing for humanity. The technology means that humans will no longer be needed in the work force and that emotionless robotic armies will take the place of human armies and have no compunction about destroying the humans on whom they are unleashed. The picture that emerges is more threatening than Alex Jones’ predictions. Faced with little demand for human labor, little wonder thinkers predict that the rich intend to annihilate the human race and live in an uncrowded environment served by their robots. If this story has not been written as science fiction, someone should get on the job before it becomes ordinary reality.
The Harvard scientists are proud of their achievement, as no doubt most of the Manhattan Project participants were about their achievement in producing a nuclear weapon. But the success of the Manhattan Project scientists was not very nice for the residents of Hiroshima and Nagasaki, and the prospect of nuclear war continues to cast a dark shadow over the world.
The Harvard technology will prove to be an enemy of the human race.
This outcome does not have to be, but free market ideologues think that any planning or foresight is an interference with the market, which always knows best (thus, the current financial and economic crisis). Free market ideology stands in the way of societal control and serves the short-term interests of powerful and greedy private groups. Instead of being used for humanity, the technology will be used for the profits of a handful.
That is the intention but what is the reality? How can there be a consumer economy if there is no employment? There cannot be, which is what we are gradually learning from the offshoring of American jobs by global corporations. For a limited period an economy can continue to function on the basis of part-time jobs, drawing down savings, food stamps, and extended unemployment benefits.
However, when savings are drawn down, when the heartless politicians who demonize the poor cut food stamps and unemployment benefits, the economy ceases to provide a market for the offshored goods that the corporations bring home to sell.
Here we see the total failure of Adam Smith’s invisible hand. Each corporation in pursuit of greater managerial “performance bonuses” as determined by profits did its part in producing the destruction of the US consumer market and greater misery for all.
Adam Smithian economics applies to economies in which capitalists have some sense of commonality with other citizens of the country like Henry Ford did, some sense of belonging to a country or to a community. Globalism destroys this sense. Capitalism has evolved to the point where the most powerful economic interests, interests that control the government itself, have no sense of obligation to the country in which their business entities are registered. Except for nuclear weapons, international capitalism is the greatest threat humanity has ever faced.
International capitalism has raised greed to a determinant force in world history. Unregulated greed-driven capitalism is destroying the jobs prospects of First World labor and the ability of Third World countries, whose agricultures have been turned into export monocultures serving the global capitalists, to feed themselves. When the crunch comes, the capitalists will let the “other” humanity starve.
As the capitalists declare in their high level meetings, “there are too many people in the world.”
This article was originally published on the Paul Craig Roberts website.
Alex Jones’ predictions
"Once in place they can engage their plan to exterminate 80% of the world's population, while enabling the elites to live forever with the aid of advanced technology." --- Operation ENDGAME.
Full 2-hour HD documentary: (It doesn't sound near as crazy as it once did)
it's still crazy
Just moved from economics to SciFi.
too many people
I agree with the argument made, but banks and corporations need customers. They may talk of reducing populations, but in reality, when the replacement birthrate drops, they import immigrants, both for cheap labor and for consumption.
Capitalism demands growth, and growth demands more people. It's unsustainable, but that's the logic.
And that is the problem. You suggest that they
need customers. That's not how they think. They need income, funding, cash flow, financing. They don't give people a passing thought.
And if they kill off 2 of every 3, they will find a way to extort the rest out of the remainder.
Which, like you said, is unsustainable. But if we don't stop it before they can no longer do that, we will all be dead. Because that's likely the only thing that will ever stop them.
Maybe poor people should just
Maybe poor people should just stop reproducing or shouldn't have more than 2 kids.
Because i saw the grim outlook years ago, I'm doing my part and I have no kids and don't plan to.
I wouldn't want my kids to spend their lives working for a rich guy, barely making a living until they are too old to work which is even before retirement age or worry about finding, keeping a job.
if you're poor, you would do a great favor to your children by not bringing them into this world.
because there is over 99% chance that they'll work at slave wages and live unhappy.
Current World Population 7,219,612,818 and is increasing by 4 each second.
370,816 Births today
27,779,342 Births this year
217,813 Population growth today
16,317,252 Population growth this year
i didn't have any kids either...hmm i was married why didn't i? OH one thing, graduated in 1994 with a BSME, let me see ... i have to get this off my chest ....
my first internship while a senior in college was Pratt & Whitney, North Haven CT, now a demolished structure, jobs gone.
my second was Vitramon corp. in my hometown of Monroe, CT .... umm today a demolished structure (rumor is WALMART may be moving in)
My first full time job out of college upon graduation, AMPHENOL Corp. Danbury, CT and once again, a demolished structure. At one time 250+ employees, today maybe 30 at some offices in Danbury.
All 3 of these facilities have been knocked to the ground and the proud machinists and engineers that worked at these corporations have been outsourced first to Mexico now CHINA, which by the way I hear is still a communist country (hear that Mr. Reagan?)
So no kids for me. Seems many americans are thinking along the same lines as the birth rate has fallen to the lowest level since the Great Depression.
Hmm i wonder ....
Pyramid Schemes Like Capitalism
In my opinion, its the use of economies (money, ownership, price tags) that causes all the problems. Not one other living creature on the entire planet... uses economies. Why do capitalists? Are economies really needed? Are systems that promote competing... wanted/needed?
Think about competitive systems as racing, for a moment, if you will. There's the old stale adage... "It takes money to make money". Now apply it to racing/competing systems such as capitalism/car racing. It takes a big motor... to win races. It takes winning races... to afford big motors. In other words, in capitalism and car racing, the folks who are good at racing... will always win at racing. The folks who are not good at racing, will rarely win. Now what if... the race was to see who could be the most cooperative (opposite of competitive)? First off, cooperators HATE racing... and its against everything they stand for. Altruists/cooperators always look out for the others' needs/wants FIRST, and always place themselves last. Cooperators want to make sure that everyone crosses the finish line at the same time... and often, before THEY do. That's fairness/love. Although cooperators never compete, IF they did, it would be a competition to see which could put forth more effort to help others cross the finish line ahead of them. In other words, cooperators might compete to see who could be the most cooperative. Love-competing. Altruism (and Christianity/other love-based religions).
So, when the USA and many other parts of the world... have decided that a competing/racing system is the proper way, then guess what. The folks who are best at racing/competing, will consistently be way out front. And since the folks with all these monetary and property winnings... are stern competers... they are unlikely to give away "their" (ownership) earnings to late finishers and to folks who hate/refuse racing... because that's not the way of a stern competer. When you/we condone racing as a-ok, you get winners and losers.
In pyramid systems such as capitalism and even in playground pyramids (both always collapse and hurt those on the bottom)... the strife is to get a leg UP, not a leg down. Competer folks tend not to seek the nobility and pride of being a strong bottom-layer foundation member of a pyramid. They instead tend to seek the "heads in the clouds" monetary powers and luxuries of climbing high. And when many are racing to climb high, the tops of pyramids get top heavy, and put enormous excess strain on the bottom layer foundation people. The weight of the world's knees is on/in their backs, and they get crushed, and the racing pyramid collapses, just like capitalism's pyramid is doing. Wise mothers everywhere know that the kids should NEVER be allowed to build pyramids of people... its exploitive upon the strong foundation layers. Yet childhood pyramids are seen all the time, including in cheerleading... and rarely does a parent stand up and say STOP IT RIGHT NOW like we all know should be done.
The Columbian Freemason pyramid scheme symbol is right there on the back of the USA dollar, and the USA gov is located in a district of COLUMBIA and not even part of the USA proper. Its the USE of economies, that causes racing systems, and its the use of racing systems, that causes sure-to-collapse pyramiding. Its racing systems that are to blame, and economies (and luxuries/empowerments gotten there-from) are the devices which cause racing. The occupiers are grumbling about unfairness... but they don't know the reasons unfairness happens, until now.
You don't want jobs, and you don't want economies. You REALLY want to get out from under being "under control"... by getting off the pyramid scheme called capitalism. In order to stop further pyramiding... abolish economies (money, ownership, price tags). Run it like the USA military supply system and USA public library system... communes. Everything is owned by "team" and everyone takes care of each other. No more billings, no more fear for survival, and custodianship instead of ownership, so things are built to last, and are repairable and reusable. Cooperating is... and always will be... a better way than competing/pyramiding/rat-racing.
Larry "Wingnut" Wendlandt
MaStars - Mothers Against Stuff That Ain't Right
(anti-capitalism-ists) (anti-economy usage)
Bessemer MI USA
Yes, they are needed and no, capitalism is not the problem. What you are witnessing in the US today is corporatism, or economic fascism. This is a precise term and I do not use it as a slur. We need the rule of law, just government and a stable economic system built on capitalism if we are to survive as an enlightened, democratic country. The only way to dispose of these systems is to embrace anarchy, which is an every man for himself proposition. Sure, an individual can go totally off the grid, in the wild, living on a steal or barter system - but your life will be brutish and short. This is not a possible way of life for a society. You speaks here of the wonders of communism, but I and many others who have lived under it will tell you differently.
Don't Confuse Capitalism With Corporatism
I believe that you mean the corporatists - the fascists, not the capitalists. Capitalism is a system which exchanges commodities or services of equal value. This entire article has been an outline of corporatism, the unhealthy enmeshment of private industry with government regulation and control. It is euphemistically sanitized as crony capitalism.