Friday, October 26, 2018
Wednesday, October 17, 2018
WHERE HAS CAPITALISM GONE?
As
a committed Socialist and a firm believer in balance and fairness for
all I am often referred to by the disparaging description of 'red
ragger'. On the contrary I am surprisingly a keen supporter not only
of true democracy (representing the electors not the party) and true
capitalism (the free market opportunity).
Capitalism:
I
buy something from your shop which you buy from a manufacturer, who
pays workers to make the product I buy. They, the employees in turn,
with their wages, buy my product which I pay someone else to deliver
from a factory of workers making my whatnots. That is a manufacturing
economy.
I
walk into a Sandwich shop which makes me a salad roll. They made up
the roll from ingredients, hopefully, sourced locally, grown by small
farmers producing high quality fruit and vegetables which they sell
to the roll-maker. The grower then buys my product and the cycle
starts again. This is an agricultural economy.
My
car breaks down and I take it to a garage and engage, hopefully a
skilled mechanic, to make the necessary repairs they identify. I pay
the mechanic either with my product (bartering) or with the money you
gave me when you bought my whatnot. This is called a service economy.
In
a way all of these different activities interact with each other and
an advanced economy produces everything its population needs and
sells the surplus overseas.
Communism:
If
you take all three examples given above and change that free choice
to ownership by the state, where the government controls how much is
made, when it is made, where it is sold and at what price. They
determine how much workers will be paid, the hours they work, the
holidays they don't get and set the rate for bribes. It's like Animal
Farm everyone is equal, some are more equal than others and we will
determine how equal you are.
The
only good side to Communism is the governments ability to direct
entire economies and populations, see also China, unlike the exciting
mess of capitalism, in to producing things faster to the detriment of
the quality that competition creates.
Socialism:
This
is where I stand. Socialism is really Capitalism with the exception
that the investors, the shareholders, the management and the future
of the company are all determined by the members or employees. In a
sense we already have a form of socialism with the RACV or Credit
Unions, members joining together for a common cause, or Dairy Farmers
who, as individuals cannot provide both supply and distribution
themselves so join together as a group to market their product.
Socialism
is NOT Communism. Socialism is those who create the economy should
share in the economy, reward for hard work and dare I say it, nothing
for the slackers and some social help for those who can neither work
nor malinger.
Look
at our planet peoples. We all stuck on this rock together so we
should work together. The rich are getting richer through corporate
tribalism and as we see, tribalism (Corporations) destroy everything
in their path and entire economies for the sake of a few Boardroom
Emirs.
Sunday, October 7, 2018
CAPITALISM IS DEAD, LONG LIVE GREED
If
you know of Stalin, Hitler, Mugabe and Murdoch get ready for the
unparalleled evils of Woolworths, Coles, Apple and Google.
Far
for it for a socialist to preach on behalf of capitalism but I have,
and still maintain, a certain respect for the free enterprise system
of times past.
To me true capitalism is the right for every individual to make his
or her way in the world as they see fit, to produce things, to sell
things, to make profits and to employ others to do the work for them.
I think I have said before that capitalism is really a system of
‘perpetual motion’ each
action in turn producing another action which, in the fullness of
time, brings us back to the start and the process begins again.
Each
complete cycle hopefully adds just a small amount to the domestic
product of the nation which should be enough to allow the population
to grow and be gainfully employed, for wages and conditions to slowly
improve and bring an entire nation into a state of comfort, and lay
the groundwork for our future generations. Control of wages and
subsequent prices while still remaining free and competitive is
important to avoid unreasonable inflation which eats away at wages
and conditions and begins to create poverty rather than prevent it.
I
would have thought it fair that an owner should be compensated ten
times more than his lowest paid worker. If a standard wage for the
worker was $800.00 a month then it is reasonable that an owner be
allowed to earn $8,000 in the same period. After all the owner is the
one who puts up the money and takes the risk so they should be
compensated accordingly.
In
recent decades however we have seen owners (or at least the
Executives on behalf of the owners) earn in excess of 200 times more.
If the average wage was still $800 a month an Executive can now rip
off
$
160,000 before it reaches the bottom line and subsequently what the
owners or shareholders will receive. This has meant owners still
receive about the same as they did before except a fortune has been
redirected, almost fraudulently, before the benefits flow on to the
workers or even the purchasers of the product.
What
we see in this new century is no longer benefiting from the sweat of
your brow or the result of your intelligence but the acquisition of
wealth through acquisition. Take the supermarkets. They have not
benefited from good business or even fair trading. They have not
sought to be faster, provide a better product, a better service or to
fairly compete on the open market. They have borrowed from the
Financiers and bought out their competitors or subsidized prices
below cost to their competitors, they have acquired wealth by bribery
and stealth and not through good business acumen.
A
former Woolworths Executive decried the fact that the producer of a
product no longer decided on the price it would sell for to make a
fair profit, but that the supermarkets now dictate to the producer,
even to the point of driving them out of business, the price which
the supermarket will pay regardless of the value it will eventually
sell for. This tactic of course drives out competitors who try to buy
and sell in a fair trading environment.
Cashed
up supermarkets then buy up huge swathes of other businesses as well,
adding to their outlets for distribution and putting further unfair
pressure on the rest of the engine of the economy, smaller
businesses. hotels, service stations, distribution systems, credit
cards, telephone companies and advertising agencies, hardware stores,
liquor sales, chemists, newspaper outlets and dozens of other
‘hidden’ acquisitions which will force out their competitors. The
Australian supermarket system, as with its media ownership, is the
most noncompetitive in the world, little wonder shoppers now look
overseas for their purchases and deny our local economy the
opportunity to engage in true capitalism.
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