Capitalism and you
Posted: Sun May 14, 2023 5:41 pm
In a prior thread, I attacked Capitalism... my failure
in that thread was to assume that others understood
Capitalism as I did.. my bad.. so to correct this and move
my case along, I am revisiting Capitalism, as a system..
now is this really how I want to spend my time? not really,
but as others avoid homework, I shall provide them and you
with some basics about capitalism and what it means to you...
the basic and unavoidable point of Capitalism is the basic
drive for Capitalism.. that is the drive for profits....
if you don't accept this, you don't accept or understand
capitalism... there is no other point in capitalism outside
of profits.. as I hope to demonstrate.....
my critique of capitalism is nothing more than a repeat of
everything that Marx/Engles said about Capitalism...
and to this day, the single best critique of Capitalism
still lies within the critique of Marx/Engles...
One of my basic points of contention with capitalism is that
capitalism is nihilistic... and nihilism as I have described it is...
Nihilism: the negation of human beings and their values....
so the point of capitalism is the pursuit of profits... all other
values are subsumed within this pursuit of profits...
so to be clear and have some base understanding of Capitalism,
I have borrowed from Wiki to have a common point of view...
and wiki says this about capitalism:
Capitalism: ''Capitalism is an economic system based on the private
ownership of the means of production and their operation for profits"
so what is the point of capitalism? some might say to gain products
and services that might otherwise be unavailable....and has admirable
as that goal seems to be, it neglects to mention that the entire point
of capitalism is the search for profits..
and let us flesh out that point...every single person engaged in
the ownership of the means of production must engaged in
the search for profits... for it is profits that allow a business to
remain open...no profits, no business...think of your own
personal finances.. you have to make more money than you spend...
what happens if you don't make more money than you spend?
bankruptcy might be one result of that action... or you go broke...
and maybe not declare bankruptcy, but other bad things happen
like becoming homeless.. (the average American is just two
paychecks from being in dire financial trouble)
so the business, whatever business, must make profits to continue
to be in business...and how do business make profits? and here
come the nitty gritty of capitalism... you have expenses,
and one of those expenses is labor... in fact, for most businesses,
the highest cost within expenses is labor... and labor is the
most flexible aspect of business... you can't cut down on most
cost like rent, or insurance or taxes, or materials... those costs
for the most part are fixed...and so it is within labor that we can
cut cost and make profits...
and what is labor? Labor is the person who sells themselves to
a business for a wage/salary...( for those who believe that labor
is voluntary, I will work out that point later)
so how exactly does this labor aspect work? I am paid a certain amount
of money per hour, week, month.. on some amount offered by
the business... and this is an important point, the labor doesn't say,
pay me X amount of dollars, the business says, this is the going rate,
and I might be a little flexible, but not by much...salaries
and hourly rates are mostly fixed... at every job I have ever
had over these 45 years has been fixed by the employer,
not the employee... and how does a business work out
what is the rate of employment? let us make this math simple,
I am offered a job at 10 bucks an hour... and to make a profit,
the business must sell my production or my work for more
than they pay me... so, I make sandwiches, at 10 bucks an hour
the business must sell my sandwiches for more than what they pay me...
that is the only way to make a profit...so in my hour, I make 10 sandwiches..
my cost is fixed...10 dollars an hour, so the business sells the sandwiches
I made for 10 bucks, for an overall price more than 10 dollars...
If I make 10 dollars and the business sells the sandwich for
10 dollars, there is no profit.. and we haven't even included
the other fixed cost of rent, supplies, taxes, advertising...
so, to make a profit, the business must sell those sandwiches
at a greater price than the combined cost of the sandwiches...
and as labor is the highest cost in a business, that is
the cost that business can fix...so by paying it employees
a lessor rate than they created, I make $10 and the business
sells my work for more than that and again, to make the math
simple, let us say, that the business sells my effort for $20...
and that is for every hour, I work, the business gains $10 profits...
so at the end of the day, 8 hours, and I work at $10
and the business sells my effort at $20 dollars, so over an 8 hour
period, I am being paid $80 dollars... and the business makes over,
an 8 hour period... $160... or double of what it paid me....
again, this is a simplistic understanding of exactly what happens,
but it is in essence, a correct understanding...
to survive the business, whatever business that maybe, must
sell the cost of the product, whatever that product is,
more than the cost of making or buying that product..
if something cost $10 dollars, it must be sold for over that cost,
$10... or there won't be any profits...
and the greater the difference between the making or creating
that product, and selling that product, it is an increase in profits...
if you can sell those products at $30 dollars, then you have made
an even greater profits...
Now think about this... if you have just one person creating profits
by the difference between what you pay then and what you can
sell their efforts, you have made profits...
so if you have 10 people with a set cost of $10 dollars wages,
and that is $100 dollars and you can sell those products at
$20 dollars, you have made $200 dollars.. again minus other costs...
but that is the way to gain wealth... to have as many people as possible
making profits for you by selling their efforts for more than you
pay them...and every salary/wage paid for, can provide even
greater profits...
so a couple of points is quite clear, if you can keep wages/salaries low,
you can increase your profits... again the maker of profits is the difference
between what you pay people and what you sell their efforts for,
the greater the difference, the greater the profits...
and the second point that becomes clear is that the entire point
of business is to increase profits by any means necessary and the
easiest way to make profits is to increase the difference between
the work used to create the products and what those products
can be sold for.... thus we now get why businesses love
cheap labor... it allows them to have greater profits...
and why it is in the best interest of business to have a large
supply of labor available.. in other words, businesses love
it when there is an unemployment... it creates a large worker
base upon which you can demand that if they want a job,
they must take less money in order to have a job...
the more available workers, the lower the cost to employee
them... they will accept lower wages/salaries to work...
and this is why businesses hate full employment.. it forces
business to hire people at a greater wages... the fewer workers available
means that you have to pay more to get workers into the door..
and this is basic supply and demand.. the supply drives the prices
of the demands...more of something means the cost will go down to
allow it to compete.. and the less of something forces the price to go up...
now as I have mentioned, I have worked for over 45 years now,
and I haven't, yet, to have a job where the owner/boss hasn't
threaten me with being fired if I don't make profits...
if there are a lot of available workers out there, I can be
easily replaced by someone who will work for less money...
and business depends on that as a means to keep labor costs down...
thus increasing profits....
but another point becomes apparent and here is where I am arguing
about the nihilistic value of capitalism.... as a worker, I am quite
replaceable, I am expendable...and business operate with that
fact in mind... I am expendable... because my value as a worker
is less then the need to make profits.. I become a means to make
profits.. profits has more value to a business than workers do..
we are expendable....at a job once, I asked for a raised and
the owner said, he would rather fire me and hire three more
people because of my wage... he could hire three people
for what he was paying me.... and that is the exact mind set
that I am attacking... people have no value other than making
profits... they are a means to an end... and once my value
is below making any profits, I have no value to the business...
I am fired... for the essential aspect of business is to make
profits, not in any, way, shape or form about the employee..
the employees are expendable.. with only having value if,
if we make profits... we have no other value..
this is pure nihilism... negating people and their values....
in this case negating people for the profits they can make...
and so ends part one...
Kropotkin
in that thread was to assume that others understood
Capitalism as I did.. my bad.. so to correct this and move
my case along, I am revisiting Capitalism, as a system..
now is this really how I want to spend my time? not really,
but as others avoid homework, I shall provide them and you
with some basics about capitalism and what it means to you...
the basic and unavoidable point of Capitalism is the basic
drive for Capitalism.. that is the drive for profits....
if you don't accept this, you don't accept or understand
capitalism... there is no other point in capitalism outside
of profits.. as I hope to demonstrate.....
my critique of capitalism is nothing more than a repeat of
everything that Marx/Engles said about Capitalism...
and to this day, the single best critique of Capitalism
still lies within the critique of Marx/Engles...
One of my basic points of contention with capitalism is that
capitalism is nihilistic... and nihilism as I have described it is...
Nihilism: the negation of human beings and their values....
so the point of capitalism is the pursuit of profits... all other
values are subsumed within this pursuit of profits...
so to be clear and have some base understanding of Capitalism,
I have borrowed from Wiki to have a common point of view...
and wiki says this about capitalism:
Capitalism: ''Capitalism is an economic system based on the private
ownership of the means of production and their operation for profits"
so what is the point of capitalism? some might say to gain products
and services that might otherwise be unavailable....and has admirable
as that goal seems to be, it neglects to mention that the entire point
of capitalism is the search for profits..
and let us flesh out that point...every single person engaged in
the ownership of the means of production must engaged in
the search for profits... for it is profits that allow a business to
remain open...no profits, no business...think of your own
personal finances.. you have to make more money than you spend...
what happens if you don't make more money than you spend?
bankruptcy might be one result of that action... or you go broke...
and maybe not declare bankruptcy, but other bad things happen
like becoming homeless.. (the average American is just two
paychecks from being in dire financial trouble)
so the business, whatever business, must make profits to continue
to be in business...and how do business make profits? and here
come the nitty gritty of capitalism... you have expenses,
and one of those expenses is labor... in fact, for most businesses,
the highest cost within expenses is labor... and labor is the
most flexible aspect of business... you can't cut down on most
cost like rent, or insurance or taxes, or materials... those costs
for the most part are fixed...and so it is within labor that we can
cut cost and make profits...
and what is labor? Labor is the person who sells themselves to
a business for a wage/salary...( for those who believe that labor
is voluntary, I will work out that point later)
so how exactly does this labor aspect work? I am paid a certain amount
of money per hour, week, month.. on some amount offered by
the business... and this is an important point, the labor doesn't say,
pay me X amount of dollars, the business says, this is the going rate,
and I might be a little flexible, but not by much...salaries
and hourly rates are mostly fixed... at every job I have ever
had over these 45 years has been fixed by the employer,
not the employee... and how does a business work out
what is the rate of employment? let us make this math simple,
I am offered a job at 10 bucks an hour... and to make a profit,
the business must sell my production or my work for more
than they pay me... so, I make sandwiches, at 10 bucks an hour
the business must sell my sandwiches for more than what they pay me...
that is the only way to make a profit...so in my hour, I make 10 sandwiches..
my cost is fixed...10 dollars an hour, so the business sells the sandwiches
I made for 10 bucks, for an overall price more than 10 dollars...
If I make 10 dollars and the business sells the sandwich for
10 dollars, there is no profit.. and we haven't even included
the other fixed cost of rent, supplies, taxes, advertising...
so, to make a profit, the business must sell those sandwiches
at a greater price than the combined cost of the sandwiches...
and as labor is the highest cost in a business, that is
the cost that business can fix...so by paying it employees
a lessor rate than they created, I make $10 and the business
sells my work for more than that and again, to make the math
simple, let us say, that the business sells my effort for $20...
and that is for every hour, I work, the business gains $10 profits...
so at the end of the day, 8 hours, and I work at $10
and the business sells my effort at $20 dollars, so over an 8 hour
period, I am being paid $80 dollars... and the business makes over,
an 8 hour period... $160... or double of what it paid me....
again, this is a simplistic understanding of exactly what happens,
but it is in essence, a correct understanding...
to survive the business, whatever business that maybe, must
sell the cost of the product, whatever that product is,
more than the cost of making or buying that product..
if something cost $10 dollars, it must be sold for over that cost,
$10... or there won't be any profits...
and the greater the difference between the making or creating
that product, and selling that product, it is an increase in profits...
if you can sell those products at $30 dollars, then you have made
an even greater profits...
Now think about this... if you have just one person creating profits
by the difference between what you pay then and what you can
sell their efforts, you have made profits...
so if you have 10 people with a set cost of $10 dollars wages,
and that is $100 dollars and you can sell those products at
$20 dollars, you have made $200 dollars.. again minus other costs...
but that is the way to gain wealth... to have as many people as possible
making profits for you by selling their efforts for more than you
pay them...and every salary/wage paid for, can provide even
greater profits...
so a couple of points is quite clear, if you can keep wages/salaries low,
you can increase your profits... again the maker of profits is the difference
between what you pay people and what you sell their efforts for,
the greater the difference, the greater the profits...
and the second point that becomes clear is that the entire point
of business is to increase profits by any means necessary and the
easiest way to make profits is to increase the difference between
the work used to create the products and what those products
can be sold for.... thus we now get why businesses love
cheap labor... it allows them to have greater profits...
and why it is in the best interest of business to have a large
supply of labor available.. in other words, businesses love
it when there is an unemployment... it creates a large worker
base upon which you can demand that if they want a job,
they must take less money in order to have a job...
the more available workers, the lower the cost to employee
them... they will accept lower wages/salaries to work...
and this is why businesses hate full employment.. it forces
business to hire people at a greater wages... the fewer workers available
means that you have to pay more to get workers into the door..
and this is basic supply and demand.. the supply drives the prices
of the demands...more of something means the cost will go down to
allow it to compete.. and the less of something forces the price to go up...
now as I have mentioned, I have worked for over 45 years now,
and I haven't, yet, to have a job where the owner/boss hasn't
threaten me with being fired if I don't make profits...
if there are a lot of available workers out there, I can be
easily replaced by someone who will work for less money...
and business depends on that as a means to keep labor costs down...
thus increasing profits....
but another point becomes apparent and here is where I am arguing
about the nihilistic value of capitalism.... as a worker, I am quite
replaceable, I am expendable...and business operate with that
fact in mind... I am expendable... because my value as a worker
is less then the need to make profits.. I become a means to make
profits.. profits has more value to a business than workers do..
we are expendable....at a job once, I asked for a raised and
the owner said, he would rather fire me and hire three more
people because of my wage... he could hire three people
for what he was paying me.... and that is the exact mind set
that I am attacking... people have no value other than making
profits... they are a means to an end... and once my value
is below making any profits, I have no value to the business...
I am fired... for the essential aspect of business is to make
profits, not in any, way, shape or form about the employee..
the employees are expendable.. with only having value if,
if we make profits... we have no other value..
this is pure nihilism... negating people and their values....
in this case negating people for the profits they can make...
and so ends part one...
Kropotkin