The Problem with Capitalism

Here is a video of an interview with Economist Harry Shutt on the problem with capitalism. It's on george galloways show on Press TV

I thought it was very interesting and well worth a watch

www.youtube.com...

2nd part is up on you tube

Oh look someone else who does not understand the difference between Keynesian economics and free market capitalism. What a confusing world it must be over at Press TV. (Not directed at OP)

[edit on 26-6-2009 by projectvxn]

[edit on 26-6-2009 by projectvxn]

OK I'm no economist, so explain to me in Laymans terms. How we can continue with a capitalist ideology that is sustainable with the earth that doesn't exploit the poor

reply to post by woodwardjnr


It's quite simple -- capitalism works fine, in that people like it (apparently), and embrace it without too much complaints. I think this is due mostly to TPTB "indoctrinating westerners with a capitalist story," but if you've ever read Wage Labor and Capitalism, you'd understand why capitalism works so well.

The answer is regulation. Business's institutions are haunted by what's affectionately known as "business decisions," whereby the managers/owners of a capitalist enterprise put profits above all else, resulting in built-in ethical/legal shortfalls.

Sadly, that's exactly what I expect from the companies I invest in (that's why I own Monsanto stock, despite their atrocious record, which includes intentionally killing people through illegally dumping poison into rivers/water supplies).

And they were right to hurt the people they did, they way they did, because the benefits simply outweighed the costs.

If Monsanto doesn't do it, somebody else will. Like I said, it's simply a business decision.

That's why I want regulations in place. So investors don't have to make these really terrible decisions. Given the right regulatory environment, where big business simply can't make it profitable to break the law, they will stop doing it.

These companies aren't run by Satan, after all. They're just run by people who are doing what they should be doing -- putting the shareholder and profits before all other considerations -- including the value of human life.

Here is an excerpt from a post I made on why some regulation is needed. and what happens when it's not there:

The best protection is a working regulatory institution.

While bush was in office, he installed more than 100 top officials who were once lobbyists, attorneys or spokespeople for the industries they oversee, which is a bit like assigning the fox to guard the hen house.

To add fuel to the fire, the SEC was filled with men of such unfathomable incompetence, they did not notice Bernard Madoff's Ponzi scheme after receiving detailed reports for nearly 10 years outlining ever detail of illegal activity.

Then, Bush decided to remove the Uptick Rule, which made it possible for speculators and the arbitrageurs (remember them?) to literally send a company into bankruptcy using the open market, or at the very least, scare the hell out of everyone by causing the stock price to drop just a few pennies above zero.

Starting to get the picture of what's going on here?

Wait, there's more:

In 1999, Bill Clinton Signed into law the Gramm-Leach-Bliley Act, allowing mega corporations, wielding ungodly sums of money, to merge together and begin speculating in the derivatives and OTC market. It also made the now famous credit default swaps legally impossible to regulate.

Adding to the volatility of the market, oil prices were soaring to never before imagined heights, due mostly to the speculative activities of institutions fomenting higher prices with their 10s of billions of capital and low margin requirements:

world consumption of oil at 87 million bpd was far exceeded by the "paper market" for oil, which equals about 1.36 billion bpd, or more than 15 times the actual market demand.
www.reuters.com...

A study of the oil market by Masters Capital Management was released which claimed that speculation did significantly impact the market. The study stated that over $60 billion was invested in oil during the first 6 months of 2008, helping drive the price per barrel from $95 to $147 per barrel, and that by the beginning of September, $39 billion had been withdrawn by speculators, causing prices to fall.
www.thetimesonline.com...

And that's not even the half of it, but the rest, as they say, is history.
Here we are, slumped over, bailing out the very institutions that caused this mess

And if you want to know where our country is headed right now, why it's happening, and who's doing it (HINT: Check the fortune 500 list), see my thread on Class Warfare

[edit on 27-6-2009 by Kaytagg]

Capitalism is fine. It's the best system on earth at the moment.

The problem is big government that's in bed with business. They pay off politicians through donations and perks and the politicians don't do what they were elected to do.

The reason why Capitalism is the best system on earth because it allows the individual the freedom to pursue their hopes and dreams.

It's self interest and capitalism that gave us Apple Computers, Microsoft and Dell. In a communist/socialist structure these things would be controlled and ran by the state.

Money is a motivating factor that creates innovation.

An actor wants to become a better Actor so he/she can make millions per picture or thousands per episode on TV. That Boxer in Cuba risks his life so he doesn't have to fight for the state but he wants to become champion and fight for millions of dollars.

Capitalism is not bad, it's big government. This is why Corporate lobbying should be banned, public financing of campaigns and term limits should be in place.

Governments also hold back science and technology in the name of national security. This is just so they can try to use the technology for a new weapon when these things could benefit mankind.