How Do You Fix a Broken Capitalist Economy?
it's inevitable .
it's part of the whole (holistically speaking)! The two main modern world financial/economic/social systems we are aware of are Capitalism and Communism or quasi Socialism.
People from the western world believe that the latter has failed .
now people from the Eastern block probably say the former has failed.
In reality both systems have failed, if not totally then significantly.
Both systems were originally created by man for the well being of all people, through the fair and equal distribution of the country's production/wealth to all who have earned it; people need to work to earn their share of the whole; this is nature's law.
Because not all people are born equal, inequality gives rise to a power difference, which leads to competition.
Competition is necessary and good to change (preferably improving) the status quo .
rules are needed to ensure the proper functioning of this system.
Systems are governed by rules .
rules are necessary to ensure proper functioning and fairness to all.
Fairness to all must be enforced by the laws of the system because of a particular trait of man called greed.
The verb 'enforced' is one sign in this article that shows the socio economic system referred to here is unstable and therefore unsustainable.
Greed runs away uncontrollably without the effective governing rule of law.
The governing source of failure in socio economic environments is human GREED.
At the very beginning when people were simple, rules were few and systems were uncomplicated, everyone was content, but that was a very long time ago.
Then the human race evolved into a complex system; people thought they were so sophisticated they could rise above the rest .
and thus the phenomenon of inequality came into being.
Carl Marx referred distinguished the two emerging classes as the bourgeoisie (the industrialists, the capitalists, the owners .
we will call them the A people) and the proletariat (the working class, the non-owners .
we will call them the B people).
To keep this discussion simple no discussion of details of the classes will be referred to here.
It is all very simple and clear; the A people have been making everything complicated, all in an attempt to gather more wealth for themselves through the effort of the B people.
Essentially the A people have had the means to build great wealth at the expense of the working class, wealth they use to maximize their pleasure and minimize their pain.
The B people are encouraged to spend all they earn during their working lives, thereby putting back into the system the resources used to add to the wealth of the wealthy.
The more the B people work the happier and more secure the A people become.
Unfortunately (for the B people!) this unequal balance of work and money earned by the B people was brought about by the overpowering greed of the A people who enticed the B people to live on credit i.
spend more than you can earn! When the masses spend more than they earn creates an unstable economic system.
When it reaches the tipping point, as Malcolm Gladwell puts it in his book "The Tipping Point", the system collapses! So now, How do You Fix a Broken Capitalist Economy? There is only one FAIR, practical and impossible way, impossible because the A people will fight to prevent it and they probably have the power to stop it.
What they (the law makers, the A people) are doing instead is taking money from the working class now and from future generations to pay for the horrendously large debt they created (like a president for example).
This strategy will balance out the balance sheet over a long period of time; economists will put it like this: clear the liabilities side by pumping people's money (through hard work) into the assets side of the BS.
The FAIR way is to dip into the great wealth of the A people (there is much and enough wealth there, make no mistake about that) and distribute it to all people; uplifting people everywhere, making the B people stronger (A people don't want that).
This will strengthen all nations that will then become more productive and contribute to the global economy as one, now that the world is fast becoming one village.
Consider the unification of Europe into the EU; weaker countries' currency became stronger while the currency of dominant countries became weaker, necessary to create a balance in the whole.
The reason England refused to join the EU is because the pound was and is still a strong currency.
The OLD way will win over the FAIR way again.
The bourgeoisie will continue to live comfortably in great wealth while the proletariat will slave away over at least the next generation to pay the huge debt those in power created over the heads of the working class.
GREED is part of human nature so there will always be disparity of power and wealth among people .
the rich taking advantage of the poor at all levels.
The challenge for those already on the A side is to recognize what they have and to share it in a benevolent way; many do but not nearly enough! Everyone's challenge in life, assuming they are a B person, is to move over to the A side.
Because you are reading this you are probably a B person wanting to move over to the other side.