Originally posted by sy.gunson
They are resigning because the ugly truth is that capitalism does not work.
What is Capitalism?
Capitalism is a social system based upon the recognition of individual rights, including private property rights where all goods, both intermediate goods and final goods, are owned privately. The “rights” referred to above are ethical-legal principles that identify and sanction man's freedom of action strictly within a social context.
Under capitalism, each individual possesses the legally unalterable authority to support and sustain himself, to conduct himself in accordance with his own independent judgment, to control the material product of his mental and/or physical labour, and, in connection with these rights, each and every individual has the legal authority to be free from the initiation of physical force. The absence of aggression that exists under capitalism allows for the formation of the free market, the vast network of voluntary exchanges of property titles to intermediate and final goods.
However, Government intervention in the markets is a form of aggression to fulfill certain socio-economic objectives. As such, it contradicts the essential nature of a capitalist economy as a non-aggressive economy. An economy remains capitalist so long as the government, or any other agency for that matter, refrains from intervening coercively in the peaceful private lives of citizens. The implications of this fact are substantial: under pure capitalism there are no taxes, no price ceilings, no price floors, no product controls, no subsidies to either the rich or the poor, no public streets, no public schools, no public parks, no central banks, no wars of aggression, no immigration restrictions, etc. Government neither resorts to aggression under capitalism nor does it sanction its use by others, end of story.
What is Corporatism?
Corporatism shares no such description. It is a social system where the government intervenes aggressively into the economy, typically with political instruments that benefit large corporations and enterprises to the detriment of smaller businesses and private citizens. Such instruments include subsidies, tariffs, import quotas, exclusive production privileges such as licenses, anti-trust laws, and compulsory cartelization designs. All involve the initiation of physical force: subsidies come from taxes, tariffs are taxes, import quotas restrict trade, license schemes prohibit non-licensed producers from producing certain goods, anti-trust laws allow competitors to gain or retain market share through legal competition in court, and compulsory cartelization speaks for itself.
Similar to socialist governments, corporatist authorities seize control of land and capital goods when they feel it is necessary to do so without regard for private property rights. However, unlike socialist governments, corporatist states usually do not formally nationalize private sector firms, choosing instead to assume de facto control over them rather than de jure control. This difference however is procedural, one of style, not of essence, making it superficial - ancillary at best - and therefore fundamentally useless as an argumentative tool of fascists and socialists to distance themselves from each other. Corporatism is a system of institutionalized aggression. Between the complementary terms “capitalist” and “non-capitalist,” corporatism finds itself comfortably within the latter.
This means that the latest attempt by the federal government to save the financial industry by subsidizing failed or failing institutional investors and banks is an illustration of a corporatist, not a capitalist effort. Market forces have nothing to do with the Troubled Asset Relief Program or the misleading “American Recovery and Reinvestment Act of 2009.” Under capitalism, firms that do not satisfactorily satisfy consumer demand are made promptly to surrender their assets and their business influence. Financial capital is siphoned away from these unproductive enterprises and allocated toward those who have proven themselves capable of taking up the mantle of “producer.”
Conversely, the kinds of legislative bills, laden with underhanded plots to subsidize various politically-connected businesses and undertakings, which see the desk of our current president, and have appeared before to his immediate predecessor, are political tools meant deliberately to obstruct the operation of this most capitalistic profit and loss mechanism. Call it what you’d like but you may not call it “capitalism.” If you find yourself cursing the wretched collaboration of businessmen and statesmen, by all means proceed. I welcome it. However, if that’s the case it is not the free market system that you find so reprehensible.
1. All peoples have the right of self-determination
18. Everyone shall have the right to freedom of thought, conscience and religion
Originally posted by Darkchemistry
reply to post by Afterthought
It sounds like an interesting movie, but please keep comments on topic or at least post your feelings about the post in some form or fashion too...thanks.
Originally posted by svetlana84
I ve seen something like this coming for a long time. the capitalist system how it is today just cannot exist. It has its flaws even in the simpler theories of the model of it.
"I walk into Brooksley's office one day; the blood has drained from her face," says Michael Greenberger, a former top official at the CFTC who worked closely with Born. "She's hanging up the telephone; she says to me: 'That was [former Assistant Treasury Secretary] Larry Summers. He says, "You're going to cause the worst financial crisis since the end of World War II."... [He says he has] 13 bankers in his office who informed him of this. Stop, right away. No more.'"