Wednesday, November 16, 2011

Capitalism’s Obituary: “…years on debt life-support…”

Continuing my explanation of the elements of Capitalism’s obituary, unequal exchange, the birth defect of capitalism, sooner or later transfers all wealth from one party to the other.  For example, if each party had $100 and one gained $5 in each transaction, it would take only 20 transactions for one party to have the entire $200.  It did not take long for capitalism to own every real thing of value.  For capitalism to continue, it had to have the losing party go into debt.  The debtor had to pledge to pay future income to the creditor.  It did not solve the unequal exchange problem; it just kept capitalism artificially alive on debt life-support.

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