RGacky3
8th February 2012, 09:16
1. Private property:
You don't need a state to have a tooth brush, probably not even to have a house (just neighbors).
However, to have a large enough land to have a for profit industrial farm, to have property rights over capital large enough to have actual industry, finance, even retail, you need a state. Otherwise every industrial action would just be pure takeovers.
Private Capitalist property (land and capital) are the pre-requisites to capitalism, and it NEEDS a state.
2. Contract security.
You need a public court system that CANNOT be bought in order for people to be able to make buisiness deals necessary in modern capitalism, without that you'd freeze buisiness and have a total lack of confidence.
Private courts could'nt work because you'd need enforcement, and they would simply work for the side that can pay them the most, (justice is not positive in itself, what is positive is getting your way in buisiness), so they would basically be useless, and only the rich would win.
3. Overseas insurance.
For investment and trade to be made overseas you need confidence that you would'nt get your stuff nationalized, or have worker takeovers or whatever, so you need the American military to keep those (Latin American) workers and governments in line.
4. Money
Yeah yeah, I know you guys think private currency can work, but it can't, history tells us that, you freeze trade and end up with banking bully tactics. People end up lacking confidence due to the constant competition over currency.
The gold standard leads to rediculous deflation and is just a bad idea to begin with.
5. Excess capacity.
As capitalism advances excess capacity becomes more and more of a problem (read Marx and you'd have known this, read keynes and you'd have known this, although Marx got it more right imo) for various economic reasons, as this happens you need someone to take the slack, otherwise you go into a spiral.
If the excess capital freezes, cuts ensue, workres are laid off, companies fail, demand drops, and you have even more excess capacity (i.e. capitalism fails).
6. Subsidies and helping industy (that suffer from the tendancy for the rate of profit to fall).
The tendancy for the rate of profit to fall (read all about it, I wrote it in simple non marxian terms.) (http://www.revleft.com/vb/rate-profit-fall-t160824/index.html) Has essencially taken agriculture out of Capitalism, it only stays there due to huge subsidies, and manufacturing has only survived the tendancy though outsourcing, and continual cutting, but without the state subsidising agriculture prices would rise rediculously, the industry would freeze and people would starve (for agriculture to be profitable naturally prices would have to rise enough to cover capital costs, which would outpace the ability for a large portion of the population to buy food, problem is the capacity is so large that as soon as prices rise to that level competition would bring it down again, and the capital costs would eat up the profits. There are some economics behind it and I've made a couple threads about this in the past).
7. Safety net
WIthout the safety net 1 of 2 things would happen, people would just ... die .... or they would become slaves to the church .... OR, more likely, they would tear shit up. But either way they arn't spending money, pushing down demand, and if they tear shit up, capitalism has a problem.
Private capitalism by its very nature cannot deal with it because they don't have money, and the nature of capitalism is chasing profit.
8. See Somalia
You don't need a state to have a tooth brush, probably not even to have a house (just neighbors).
However, to have a large enough land to have a for profit industrial farm, to have property rights over capital large enough to have actual industry, finance, even retail, you need a state. Otherwise every industrial action would just be pure takeovers.
Private Capitalist property (land and capital) are the pre-requisites to capitalism, and it NEEDS a state.
2. Contract security.
You need a public court system that CANNOT be bought in order for people to be able to make buisiness deals necessary in modern capitalism, without that you'd freeze buisiness and have a total lack of confidence.
Private courts could'nt work because you'd need enforcement, and they would simply work for the side that can pay them the most, (justice is not positive in itself, what is positive is getting your way in buisiness), so they would basically be useless, and only the rich would win.
3. Overseas insurance.
For investment and trade to be made overseas you need confidence that you would'nt get your stuff nationalized, or have worker takeovers or whatever, so you need the American military to keep those (Latin American) workers and governments in line.
4. Money
Yeah yeah, I know you guys think private currency can work, but it can't, history tells us that, you freeze trade and end up with banking bully tactics. People end up lacking confidence due to the constant competition over currency.
The gold standard leads to rediculous deflation and is just a bad idea to begin with.
5. Excess capacity.
As capitalism advances excess capacity becomes more and more of a problem (read Marx and you'd have known this, read keynes and you'd have known this, although Marx got it more right imo) for various economic reasons, as this happens you need someone to take the slack, otherwise you go into a spiral.
If the excess capital freezes, cuts ensue, workres are laid off, companies fail, demand drops, and you have even more excess capacity (i.e. capitalism fails).
6. Subsidies and helping industy (that suffer from the tendancy for the rate of profit to fall).
The tendancy for the rate of profit to fall (read all about it, I wrote it in simple non marxian terms.) (http://www.revleft.com/vb/rate-profit-fall-t160824/index.html) Has essencially taken agriculture out of Capitalism, it only stays there due to huge subsidies, and manufacturing has only survived the tendancy though outsourcing, and continual cutting, but without the state subsidising agriculture prices would rise rediculously, the industry would freeze and people would starve (for agriculture to be profitable naturally prices would have to rise enough to cover capital costs, which would outpace the ability for a large portion of the population to buy food, problem is the capacity is so large that as soon as prices rise to that level competition would bring it down again, and the capital costs would eat up the profits. There are some economics behind it and I've made a couple threads about this in the past).
7. Safety net
WIthout the safety net 1 of 2 things would happen, people would just ... die .... or they would become slaves to the church .... OR, more likely, they would tear shit up. But either way they arn't spending money, pushing down demand, and if they tear shit up, capitalism has a problem.
Private capitalism by its very nature cannot deal with it because they don't have money, and the nature of capitalism is chasing profit.
8. See Somalia