Wednesday, June 13, 2007

A sad indictment of capitalism ?

Many elements of this picture are true, a popular bromide says "Every good lie has a bit of truth in it", and while i would say that this is a good representation of the system we live in, i would argue that we do not live in a capitalist system. We live in a system that is a compromise between capitalism and socialism with a large dose of mystical overtones.

In a true capitalist system "A rising tide raises all boats" to quote another bromide. Every bromide becomes a bromide because it rings very true. Capitalism is not a 'Something for nothing', 'Some win at others expense' zero sum game. Capitalism is geometric in its progression. Value creates more value, and consumption of a value is the fuel for the creation of yet more value. Take for example freight that is hauled on long-haul trucks. A driver or a team of two drivers pick-up freight from a shipper and spend fuel, buy food and pay for entertainment while in route to the receiver of the freight. The drivers receive enough compensation to make the payment on the truck, fuel, and meet their expenses. This payment must be added onto the cost of the freight. Consumers pay for this service to receive the products they want and need. In return the consumer works making products and providing services for other people.

Understand that you get out of capitalism what you put into it, and it rewards thoughts that create benefit above all else, but thoughts alone are useless there has to be action taken to bring the thoughts out of mans mind and into the world that he lives in. I have chosen for example as my ultimate goal to provide housing to people, either through sale or rent. I am in the process or rehabbing my first house, I will probably break even on this house because to many mistakes were made in the rehab, but i will gain knowledge and next rehab i do will actually turn a profit.

No comments: