Economic Growth and world Resources - Profit fuled by cheap

[RedCeltic]

Capitalism is a system that is driven by economic growth. In order for the economy to continue to grow, capitalism must continue to exploit land, labor and resources. When these resources become scarce, the economy becomes stagnant, economic growth slows down, and capitalism falters.

In order for this system to continue to work in the future, it must place more and more of the worlds population at the lower economic status, producing the more wealth for an increasingly smaller minority of the world population.

Capitalists will tell you that a global economy will help raise the economic status in developing nations. However, this is contrary to the goals of economic growth of capitalism. For the more people who are brought up to the level of consumption of the average American, the less resources available, and less room for economic growth.

[truthaddict11]

this is the main reason for the push for the "free" market with things like NAFTA, GATT and FTAA right?
These things have only devastated developing countries more while more developed capitalist countries still obtain more wealth. tell me if i am moving in the right direction

[RedCeltic]

Quote: from truthaddict11 on 1:57 pm on May 12, 2003
this is the main reason for the push for the "free" market with things like NAFTA, GATT and FTAA right?
These things have only devastated developing countries more while more developed capitalist countries still obtain more wealth. tell me if i am moving in the right direction

Yes, That's exactly what NAFTA, GATT and FTAA seek to do. The only way the economy can grow, is if it seeks out new sources of resources and cheap labor. They must secure resources form these developing nations in order to ensure higher profit yelds, with low overhead. When cheap resources and labor for exploitation become scarce, the overhead will go up, and profits down.

So because capitalism is depentant on world resources and labor for growth, it's potential for growth is in fact limited to what output the earth and population can produce, and how many people actually live as end user top consumers in the first world.

Here in the United States, we are only 5% of the world population and consume 25% of the world's resources.