The Flaw of Capitalism
What is Capitalism?
The American-Counter-Revolution has derived its "definition" of Capitalism from the book Capitalism For Beginners, Robert Lekachman and Borin Van Loon, 1980, pages three and four.
The reason for this is very simple and basic. In 1980 Robert Lekachman was the Distinguished Professor of Economics at the City University of New York. City University of New York (used to be City College of New York) has played a central role in the Permanent Revolution (and the generation of many Conspiracy Theories). Lekachman's definition/basic description of Capitalism is very simple and at the same time very precise and remarkably correct.
"The bare, basic essentials of Capitalism are these":
Capital is the portion of a nation's wealth that is man-made and therefore reproducible. (Emphasis in the original)
Under Capitalism, a society's capital equipment, its means of production, is owned by a minority of individuals who have the legal right to use this property for private gain.
Capitalism relies on the market system, which determines distribution, allocates resources and establishes the income levels, wages, rents and profits of the different social classes.
There is more to Capitalism than that. It can refer to an economic system, the society built on it and a historical stage of Western, First world, civilization.
The trouble is, can we trust any economist to tell us the truth about Capitalism? Capitalism has continually suffered and overcome, crisis... Inflation contributes to the instability of financial markets, trade imbalances and the financial crisis of the state.
The Flaw of Capitalism is most obvious in the above quote. Take a few minutes and compare Lekachman's Rule #1 with the last quoted sentence.
Capital (money) is man-made and reproducible. Inflation contributes to instability in markets and creates financial crisis for the State.
In the American Republic its Capital (money) is created (printed by the US Treasury) and then controlled (distributed) by the Federal Reserve. Do you see the problem?
Inflation contributes to instability. "Capitalism has continually suffered and overcome crisis."
Capitalism can not exist without inflationism... Capital that is reproducible/man-made... money.
What is Inflationism?
This is a most simple, legitimate and logical question to ask.
According to Webster's Seventh New Collegiate Dictionary, 1963 (The American-Counter-Revolution uses this dictionary for the vast majority of word definition) "Inflationism" is simply defined as follows,
"The policy of economic inflation."
Simply stated, the printing of money. Remember money/capital is man-made/reproducible.
Capitalism can not survive without Capital... money. The Capital... money must come from somewhere. Maybe we need to look at the variety of words based on the base word "inflate".
"To puff up, to expand or increase abnormally."
So Capital/money by definition is "inflatable."
"Capable of being inflated."
So our Capital/money supply is "inflated."
"Expanded to an abnormal or unjustifiable volume or level."
If Capital/money is inflated this must lead to "inflation."
"An act of inflating, an increase in the volume of money and credit relative to available goods resulting in a substantial and continuing rise in the general price level."
Yes... Capital/money... reproducible, man-made wealth... is "inflationary."
"Characterized by, or productive of inflation."
And if you have been paying close attention, it is obvious this leads to "inflationary spiral."
"A continuous rise in prices that is sustained by the tendency of wage increase and cost increases to react on each other."
And of course this brings us all back to inflationism... of which Capitalism can not survive without its existence. Do you see the problem yet? Economists can not tell us the truth about Capitalism. What is that truth?
Simply stated., by its very nature Capitalism creates its own demise in its pursuit of survival... overproduction and under-consumption... The Flaw of Capitalism.
