Commentary on Political Economy

Saturday 6 August 2011

The Vicious Circle of Capital

Unfortunately often, even the best minds get it the wrong way about! Here is James Surowiezki at the New Yorker telling us that markets are being upset by incompetent or dithering politicians.

In fact the opposite is the case! It is not governments that upset the markets - but rather markets that set the aganda for governments to meet! The greatest danger to capitalism is the one we are trying to outline here on this site: - namely, that capitalist governments are trying to preserve capitalist "rules" (profitability based on monetary measurement) because they rely on "markets" to tell them what to do, precisely at a time when "markets' are themselves no longer able to deal with the problems of "private" capitalist industry - taking on the workers in the workplace! As a result, "markets" seek to exploit "financial opportunities" that serve only to de-stabilise the governments (collective capitalists) on which they rely to enforce those very "rules"!

In seeking to preserve the "rules" of capitalism (to repay "interest" on public debt), governments are having to destroy the "private" economy from which they derive the "revenue" ti pay those "debts"! And their very adherence to these "rules" allows "private capital" to force governments into measures that further reduce their ability to observe those "rules" and to keep our society of capital alive!

This is the insane vicious circle or circuit from which we need a "Rooseveltian circuit-breaker"!

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