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Capitalism. A thread. 
1. There’s a huge diff btwn creating something of value, getting a reward for it, & capitalism.
Capitalism is a specific system of ownership & decision making…
It is not about the existence of business, trade or getting a significant reward for value
1. There’s a huge diff btwn creating something of value, getting a reward for it, & capitalism.
Capitalism is a specific system of ownership & decision making…
It is not about the existence of business, trade or getting a significant reward for value
2. Those things have long existed before the invention of capitalism and can continue to exists after capitalism is gone.
Capitalism’s greatest trick is pretending that this is the only way we can do these things.
I'll explain further.
Capitalism’s greatest trick is pretending that this is the only way we can do these things.
I'll explain further.
3. I’m going to use the most capitalist nation on the planet -- America as my example.
In the 1930s, the Great Depression happened. Capitalism collapsed.
The employment rate was at a very conservative estimate of a horrible 25% . In reality, it was probably a lot higher.
In the 1930s, the Great Depression happened. Capitalism collapsed.
The employment rate was at a very conservative estimate of a horrible 25% . In reality, it was probably a lot higher.
4. A small group of people were stinkingly wealthy, while people died of hunger and suicide, children suffered, homelessness... It was a really really dark time.
The Great minds at the time started to ask why?
Why this?
The Great minds at the time started to ask why?
Why this?
5. They realised that capitalism by design was inherently flawed to result in such moments of abrupt economic destruction. So they decided that for capitalism to exist, they needed to patch it up.
This was the birth of Keynesian Economics. It was patch patch capitalism.
This was the birth of Keynesian Economics. It was patch patch capitalism.
6. It suggested; more government intervention to cub things like monopoly, fair taxation etc.
Remember that this was patching. So while things were better than during the great depression, capitalism still couldn't yield "the American dream" it promised.
Remember that this was patching. So while things were better than during the great depression, capitalism still couldn't yield "the American dream" it promised.
7. Much like how the french revolution brought capitalism to France with big hopes that it will bring equality, liberty, fraternity and democracy, but couldn't.
So of course, Americans were getting frustrated. This frustration brought about a new political campaign premise.
So of course, Americans were getting frustrated. This frustration brought about a new political campaign premise.
8. We saw politicians like Reagan and co, blaming the "old" patch patch Keynesian capitalism, promising to kick it out.... and replace it with the pre-great depression capitalism.
It was as if they had all forgotten all they suffered during the great depression.
It was as if they had all forgotten all they suffered during the great depression.
9. Well, sadly, American paid for it. Only about 2 decades later, in 2008 the fragile unstable capitalism came crashing down again, the second time in JUST 75 years. Lives and properties lost, hopelessness and yet again, government bailouts for capitalists.
So why this???
So why this???
10. Why does capitalism inevitably self destruct?
Not only can capitalism never bring equality, it's also at odds with it
In capitalism there're 2 groups who make the decisions:
a) are a tiny group of shareholders; 1% own about 2/3rds of the shares &
b) the board of directors
Not only can capitalism never bring equality, it's also at odds with it
In capitalism there're 2 groups who make the decisions:
a) are a tiny group of shareholders; 1% own about 2/3rds of the shares &
b) the board of directors
11. Usually, the 1% in society are the ones who can afford to invest large amounts of *CAPITAL* into the business. So they are the shareholders. These shareholders elect the second group of decision-makers: the board of directors.
You get one vote for every share you get.
You get one vote for every share you get.
12. The thousands and millions who work for these corporations, dedicating significant parts of their lives, at least 8hours a day, have to live with the decisions that the small number of decision-makers make
*Can you see why this is not just about trade and reward for value?
*Can you see why this is not just about trade and reward for value?
13. This also means that Capitalism is fundamentally undemocratic, If there is no democracy at work where we spend most of our adult lives, there will be no democracy in “politics”
14. In capitalism, profit is the ultimate goal.
Everyone helps to produce a profit. But not everyone gets a share in it.
The people who get the bulk of the profit are the shareholders, and if your boss is kind like me, you get a bonus at Christmas.
Everyone helps to produce a profit. But not everyone gets a share in it.
The people who get the bulk of the profit are the shareholders, and if your boss is kind like me, you get a bonus at Christmas.
15. So the shareholders who often don't even work at this large corporations are going to vote for a board of directors who they believe will yield the most profit for them... and of course reward the directors handsomely with enormous salaries.
16. How do you make a profit?
Simple! By reducing the cost of production & selling high. Reducing the cost of production often means, reducing wages.
Let's circle back to capitalist US.
When all the big corporations are reducing wages, it means Americans have less buying power
Simple! By reducing the cost of production & selling high. Reducing the cost of production often means, reducing wages.
Let's circle back to capitalist US.
When all the big corporations are reducing wages, it means Americans have less buying power
17. This is capitalism's greatest dilemma. Its labour is its market. If people have less buying power, who is going to buy all the products you're advertising?
This is where credit comes in. Credit isn't real money (Thanks to the poo that is fiat) Credit is the promise of money
This is where credit comes in. Credit isn't real money (Thanks to the poo that is fiat) Credit is the promise of money
18. and since credit isn't real money/value, authorised banks can produce credit out of thin air. #ValueMyAss
Americans need to take a shit ton of credit just to make up for the reality that they are earning shit in comparison to what they have to buy to live in their society.
Americans need to take a shit ton of credit just to make up for the reality that they are earning shit in comparison to what they have to buy to live in their society.
19. So credit doesn't actually serve the people, it serves the 1%, the capitalists. It ensures that buying will happen (profit) while putting the masses in debt.
A senseless what? a senseless system.
A senseless what? a senseless system.
20. There's another way to getting cheap labour. Poorer skilled countries.
So years ago, when American Corporations "discovered" China, India & co, they took the labour there, again, living more unemployed Americans, more competition for the available jobs, meaning; less wages..
So years ago, when American Corporations "discovered" China, India & co, they took the labour there, again, living more unemployed Americans, more competition for the available jobs, meaning; less wages..
21. A what?? A senseless system.
Now back to value. To shut down this silly idea that the 1% create value. They don't. We all do. No one will ever pay you for your worth, it has never happened and never will.
Now back to value. To shut down this silly idea that the 1% create value. They don't. We all do. No one will ever pay you for your worth, it has never happened and never will.
22. When you’re hired, there has to be a profit. I run a business, people hire to get a profit.
In capitalism, the worker makes a surplus of what they get. (profit)
This isn’t in itself bad. What’s bad is what happens to the surplus? and how does that surplus come about?
This isn’t in itself bad. What’s bad is what happens to the surplus? and how does that surplus come about?
23. Capitalism ensures that these questions are handled by a few(Those with the capital).
This is why Capitalism is fundamentally unequal. It is capable of massive levels that's so unimaginable.
This is why Capitalism is fundamentally unequal. It is capable of massive levels that's so unimaginable.
24. Now here's why the patch patch never works.
If there's no democracy where we work, how can there be in political power?
Crony capitalism is inevitable. Help me understand, why won't the small number who have the capital, not buy political power that favours them??
If there's no democracy where we work, how can there be in political power?
Crony capitalism is inevitable. Help me understand, why won't the small number who have the capital, not buy political power that favours them??
25. What I have against those who are against capitalism is how inarticulate they about the alternate solutions.
Capitalism is very unsophisticated & sad.
The alternate is simple. We need more corporations that are worker co-operations. It just means businesses owned by workers
Capitalism is very unsophisticated & sad.
The alternate is simple. We need more corporations that are worker co-operations. It just means businesses owned by workers
26. Google the Mondragon Corporation.
It is the 7th largest corporation in Spain. It is a legitimate business, out-competed thousands of capitalists corps, they even have a university now to teach their system.
It is the 7th largest corporation in Spain. It is a legitimate business, out-competed thousands of capitalists corps, they even have a university now to teach their system.
27. Together, the workers hire, fire and evaluate their managers, the opposite of capitalism.
The means of production and capital are communally owned.
The means of production and capital are communally owned.
28. They set up a rule that the highest person can’t earn more that 8 times the lowest worker, in comparison to the average American corporation where the CEO earns around 350 times the lowest workers.
Democracy at work means more equality and stability.
Democracy at work means more equality and stability.
29. The workers will not vote themselves out of a job, so they are definitely not voting to exploit poorer people in Africa and India for cheap labour.
30. We are convinced that a system where an ordinary can of fruits has fruits harvested in china, processed in Mexico and packages in America is somehow the best human beings and our sophisticated as our minds are can do. LIES.*
31. The opposite of capitalism is not the government. LOL. This is simplistic. Look at the Soviet Union for instance.
A government can decide to fire all the heads of the corporation & replace them with their own board, makes no diff bcos the basic structure is still capitalist.
A government can decide to fire all the heads of the corporation & replace them with their own board, makes no diff bcos the basic structure is still capitalist.
32. The solution to capitalism is indeed socialism, but socialism is not necessarily more government. Socialism simply means the means of production are owned by the people.
33. Just like every inefficient, unjust socio-economic system be it feudalism, slavery, whatever, it will come and go for something better, this insistence that there is nothing better than capitalism is unimaginative.
34. Wealth is subjective is a dismissive false equivalence. There's a difference between being rich and being able to buy significant political power. We don’t need people who are individually richer than the entire collective/country combined.
35. There is a huge diff btw a millionaire & a billionaire, no matter how subjective wealth is
We need socialism, i.e; more worker co-ops in our major corps & businesses, so those who labour to produce the surplus cn benefit from it too, not just investors & investment bankers
We need socialism, i.e; more worker co-ops in our major corps & businesses, so those who labour to produce the surplus cn benefit from it too, not just investors & investment bankers
Thank you for getting this far! Hurray!!!!
Also, for further learning on this subject, please watch the economist and Professor, Richard Wolff on YouTube. Brilliant is an understatement and he makes it so easy to understand.
