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Since "stocks" are the talk of the feeds, I'm going to make a thread explaining the connection between capitalism, the stock market, and why the US can't stop bombing countries, even if it wanted too.
Buckle up for the true definition of imperialism. (1/13)
Buckle up for the true definition of imperialism. (1/13)
Capitalism consists of businesses in competition with each other. Only the most cutthroat will survive, driving costs (wages) down to drive prices down (and profits for the owner up!)
Now, say a company like starbucks sees a smaller coffee shop a few blocks away. What to do?
Now, say a company like starbucks sees a smaller coffee shop a few blocks away. What to do?
Starbucks will do one of two things. The first is to purchase the shop during tough times (like right now!) The second is to open another starbucks near it anyways, and drive it out of business with lower prices.
For starbucks to make more money, it has no choice but to expand.
For starbucks to make more money, it has no choice but to expand.
There's a second, complicated aspect at play.
Banks don't just store money, they also invest heavily in industry. What if the board member of starbucks is on the board of a bank? Maybe they will invest in that new shop. Maybe they will also invest in a roasting factory itself.
Banks don't just store money, they also invest heavily in industry. What if the board member of starbucks is on the board of a bank? Maybe they will invest in that new shop. Maybe they will also invest in a roasting factory itself.
Starbucks doesn't just want money, it needs money from the banks (investors) to make even more money. That's the primary role of banks and the stock market in an economy.
Give loans to companies who will then pay them back by doing well.
Give loans to companies who will then pay them back by doing well.
Additionally, to have decision making power in a company, you only need a majority of stocks. Oftentimes it's even less than that, like 10-20%, if everyone else only has ~1-5%.
What this means is that with ease, investors/banks are able to control entire wings of industry.
What this means is that with ease, investors/banks are able to control entire wings of industry.
To clarify, all a stock is, is part of a company. Having 20% of a companies stocks means you own 20% of the money that company makes. It's in your best interest for the company to make a lot of money if you own stock.
Real simple but I figure I should still explain.
Real simple but I figure I should still explain.
Anyways, now these banks essentially take the place of the old "monopoly man factory owner guy" thing.
Except it's investors who have no connection to the actual work or management of a company beyond owning a certain percentage of it.
Except it's investors who have no connection to the actual work or management of a company beyond owning a certain percentage of it.
Even the "bosses" and "CEO's" are mostly just schmucks hired by the board of investors to actually do things. The investors just... Invest. And they make the biggest paychecks.
And they want their companies to expand, quarterly, or else they'll move their money elsewhere.
And they want their companies to expand, quarterly, or else they'll move their money elsewhere.
So what does a company like starbucks or Walmart or Amazon do? They expand like hell. They bulldoze any competition in their paths. Anywhere there is a market for people to buy, they need to expand too.
A Starbucks on every street corner.
A Starbucks on every street corner.
Some of you may be thinking "what's that have to do with imperialism"? Everything! Once a company has successfully monopolized, beat all competitors, it only has two choices.
1. Compete with itself (2 starbucks per block... Lose money?)
2. Find new markets... Elsewhere
1. Compete with itself (2 starbucks per block... Lose money?)
2. Find new markets... Elsewhere
Where is "elsewhere"? Latin america, Asia, Africa. Countries that close their economies are said to not have "free markets".
Pro-democracy movements in Hong Kong and Venezuela are about this, for example. Those countries don't want US investors stealing their markets.
Pro-democracy movements in Hong Kong and Venezuela are about this, for example. Those countries don't want US investors stealing their markets.
Michael Parenti refers to this as "capital penetration", Lenin, who discovered this process, refers to it as Imperialism.
Imperialism isn't simply when "a country does a thing to another country" - it's this.
(Fin)
Imperialism isn't simply when "a country does a thing to another country" - it's this.
(Fin)
Please retweet! Long threads like this get buried often. I will be responding to any questions here and in DM's :)
