Reply To: (Is this really ) How Capitalism is Killing Itself?

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@ Phil – The special interest groups that have hijacked society are to be found in the FIRE (Finance, Insurance, Real Estate) sector. Politicians and the media are, for the most part, paid lackeys of this sector. All of economic policy has been subverted to meet the perceived interests of this group.

The entrenchment of privilege is a common theme throughout history and in other places and at other times has variously resided in the Priest Class, the Aristocracy, the Military and the bureaucratic classes. Sometimes society just collapses under the weight of its own internal contradictions (e.g. USSR) and sometimes the ruling elites are removed by violence (e.g.French and Russian revolutions)

What is different this time is that today’s hijackers have taken control of substantially the entire world and almost all economies and societies are experiencing similar problems.

Modern society is complex – maybe too complex for any theory. Marxism basically assumes that under capitalism wages are lower than they otherwise would be in order generate an unearned surplus for the capitalist. This is partially true – but the capitalist takes risk and could lose all of his money if his venture fails. If it succeeds he is rewarded via the profit function. The opportunity for both loss and profit motivates the capitalist to try his best to succeed. This kind of arrangement is conducive to innovation. It is also wide open to abuse – the evidence of which is all around us.