Capitalists don't understand how capitalism works
It's no secret that capitalists don't understand what socialism is. When they talk about socialism they mix in communism, fascism, feminism, atheism, and just about any other word that scares them. So it's no surprise that the vast majority of Americans have no idea what socialism is.
The surprising thing is that the vast majority of Americans fail to understand what capitalism is either. Even professional capitalists appear ignorant of how capitalism works.
There are a lot of examples, but this one is a particularly good example.
Yet amazingly enough, the stock market is at an ALL TIME HIGH.
More than 11 million people in the US alone are still unemployed. 2.7 million homeowners are in forbearance (meaning they’re not paying their mortgages). Millions more are relying on food banks to feed their families...
Plus there are entire industries– retail, travel and tourism, commercial real estate– which have been completely vanquished. And it’s unclear if they’ll ever fully recover.
Somehow lower profits + lower consumer spending + higher unemployment + ravaged economy + soaring demand for food banks = record high stock prices.
I don’t think you need a PhD in finance to understand that this makes absolutely no sense– the stock market is completely disconnected from any sort of reality.
It’s no longer about productivity, innovation, profitability, or the health of the economy.
This is a brand-new thing, huh? The stock market going up even while the working class gets exploited and destroyed. This capitalist thinks that this is something new.
He seems to have missed the lessons learned from the 1980s 90s and 00s. Time and time again, in literally thousands of instances, factories, mines, and other places of employment for the working class were shut down and off-shored.
And guess what the stock market did every time? It directly responded positively every single time that the working class got screwed.
The only thing different about it this time is the size of the screw job.
Capitalism is functioning exactly how it's supposed to. And how it always has. The fact that it's dysfunctional and has a negative impact for American society is how the system is designed.
That this diehard capitalist doesn't recognize this fact only shows how indoctrinated he is.
There is one other item worth noting.
And according to Standard and Poors, corporate profits of the S&P 500 are down 48.96% compared to this time last year.
Right. Market always punish falling corporate profits, amirite?
Well no. A lot of the best stock market winners of the last 20 years have been companies that don't make any money. Tesla, Uber, Netflix, Twitter, the list goes on and on.
But once you recognize that capitalism rewards losing money (i.e. bad investments) then you are forced to recognize that capitalism isn't efficient. And that's just the stock market.
In real estate the wealthy are incentivized to buy investment houses that sit empty while our homeless population explodes.
And what can you say about a system in which farmers go broke producing crops that they plow under or get dumped in the landfill, while people go hungry in the cities?
It's worse in the labor markets, where the people that are most important to the economy, supplying us with our food, clothing and shelter, are almost always the lowest paid.
While on the other end of the scale, people paid the most do nothing but push electronic bits that represent money across a computer screen.
Now when it comes to your well-being, which is more important in your life? Food clothing and shelter, or electronic bits across a computer screen? Let's not forget that the person pushing bits on a Bloomberg terminal are often doing it to destroy the livelihoods of working-class people who produce your food and shelter.
This is how capitalism works. It destroys the working-class. It destroys people that you need most. And it incentivizes that destruction through the mechanism of compensation. Or lack of.
And then there is the environment, which capitalism incentivizes its destruction by using the term "externalities".
And of course there is the always extremely profitable capitalist enterprise - war.
What the cheerleaders of capitalism always do this blame the government, even when the government is bought and corrupted by the capitalists, and directly does the bidding of those capitalists.
Cheerleaders of capitalism besides being ignorant of how Capitalism works, are also ignorant of the history of capitalism. They will tell you, and honestly believe it, that more capitalism leads to more freedom and prosperity.
Let's just ignore the obvious question of "At what point when you are at work, when the boss is telling you what to do, how to do it, and where to do it, do you tell yourself 'This is freedom'?"
Let's instead focus on some history.
Three times in the last 150 years major nations were owned and controlled by corporations, whose sole purpose was to reward shareholders with profits. In other words these countries were run just like a business, and for decades if not centuries, without major interference from the government.
The examples I'm thinking of include India under the British East Indies Company, Indonesia under the Dutch East Indies Company, and the Congo Free State.
So how were these capitalist utopias?
They were all guilty of slavery, war, famine and genocide.
The Congo was a particularly gruesome example, in which it is the only instance in history where severed hands became a tradable currency.
Until the institution of capitalism is honestly critiqued and its role in society questioned, nothing will ever improve.