Tuesday, March 27, 2018

For The Hell Of It

(Continued from What Is Capitalism?)

- Capitalism moves towards a closed system. Those dispossessed from their lives on the land become employees. Employers make a profit out of the labor of their workers who can't afford to buy the products they make: with employers profit added the total cost of products is more than the total of workers wages. Workers can buy only a fraction of what they produce.  Employers consume some of the excess. The rest must be sold in territories outside the system. As capitalism and the free market expand their reach, and populations in the territories, dispossessed from their lives on the land, become employees producing additional products that have to be sold, that outlet is closed. Competition drives advance of technology; the amount of products made for fixed cost increases. But workers can't pay more for employer products than employers pay them. Employers have the choice of hoarding the excess products, or allowing with higher wages workers to have some of them and live more than a life of subsistence: maybe then they'll work better and make more products.
- But how do employers profit from that if all they can get from their employees for their products is the same amount they have paid them in wages?
- They allow them credit to buy more.
- But that is their money too!
- They don't let it get too far away. In one scenario workers buy houses on credit at low interest rates, the boom in house buying is followed by a bust, interest rates are raised, refinancing is impossible, payments become unaffordable and houses are repossessed.
- Poor workers. Made slaves, dispossessed of their land, are allowed to buy back land, only to be dispossessed again! Is it a stupid question to ask why employers don't stop persecuting their employees and let their businesses run on without profit? Why do the rich-beyond-any-use capitalists think they need their profit?
- A company doing business in the billions operating without demand for profit presently exists: the watch manufacturer Rolex. At the death of its owner the company became a private foundation without loss of competitiveness.
- Then there is no institutional, practical necessity for profit.
- Profit isn't the only value. Have you ever tried to read Marx's Capital?
- I tried.
- Even second hand, hearing it discussed, I experience a strange sense of unreality. Value, Marx says, is socially useful labor. Employees produce that value, but employers take most of it for themselves as their profit, without doing any socially useful labor themselves. Their relation to their employers, labor, is used to explain what money is, to prove that employers are robbing employees of what is theirs.
- What's wrong with that?
- It's an explanation in terms of the severely limited world of the marketplace where everything is to be bought and sold, including people, that is, from the world of part-time slavery Marx is trying to explain. In the larger world something is socially valuable passed from one person to another as an act of sympathy, as participation in another's life, as a creative act, as an act of humor, as an act of disencumbrance...
- All of which hasn't the slightest meaning to capital's slavedrivers. They won't willingly give up the god-like act of remaking human beings from part-time slaves into full-time slaves. They're in it for the hell of it.

Further Reading:
Capitalist Utopia
The Politics Of Truth