Capitalism Works for Me! True or False

Yesterday evening i was walking through Times Square and came across this arti installation. It was interesting to overhear what people said about this in line and around the area. The question is thought provoking.

Pick true or false, and then explain how you feel about capitalism and why it works or doesn't work for you.

Over the years, it has and has not worked for me. When I had nothing, I didn't think it worked for me because I worked long hours and had little to show for it. I couldn't participate in part of the consumer game because I didn't have time to consume anything save food and minimum spending. I observed small businesses grow in the early 90s recession because they provided value and quality work in a thriving garment sector. NAFTA was signed and that changed almost overnight. I had changed from the garment sector to the pharmacuetical sector and missed the NAFTA implosion of the garment center.

Over time, I've moved from company to company each time moving upwards in salary and in position. The products the company produced was consumed by global masses.

So today capitalism works for me. In the past I'd say it didn't work for me, but in reality maybe it did because it kept me hungry and looking for how to be better to improve myself, my skills, and my lifestyle.

 

Capitalism works for me. Yet, I'm not a capitalist.

The first statement is problematic, while the second one may confuse matters. I don't view this as a black and white issue.

I don't view capitalism as a stand-alone economic system, because in practice it doesn't operate that way. I view capitalism more as a function of economics within a society. To simplify, capitalism functions mainly as a means of allocating resources for the purpose of economic activity. This is based on the truism that resources are scarce and that their allocation should be determined by a mechanism that makes the most sense from an efficiency standpoint. That said, capitalism can be an efficient means for doing this, namely, through markets driven mostly by supply and demand. However, problems can arise within a society that gives too much free reign to the players within these markets. When interests are driven purely by self-interest and the accumulation of wealth (or the fear of losing it), bad things can happen, and they have.

This is why I view a mixed economy as the least of the possible evils of governance. I don't think capitalism is a stable mode of economics in its pure form. A society run under a truly free market would eventually devolve into something resembling a dystopian nightmare. I believe that capitalism, for all its good, requires adequate and balanced laws and government policies to prevent it from becoming something ultimately exploitative of the masses.

I have for a long time now thought that free markets are a terrible way to govern a society. It would like turning over all social matters to the whims of the herd mentality or, worse, mob rule.

I say I'm not a capitalist. By this I mean that I'm not a holder or user of capital as an investor in trade or industry looking to turn a profit. The closest I get to that kind of thing is with the minuscule funds I may have with banks over short periods. Other than that, I view myself mostly as a worker, and a freelance one at that.

Politically speaking, I consider myself a social democrat, which means I believe in working within the capitalist system to make it livable within the broader social realm. In a nutshell, it's like Marxism without the revolution—or, if you will, "reformist Marxism."

 

Agreed.

Right now, capitalism really isn't working for me. I pay to work. Yep. That sucks.

 

To clarify, I was speaking mostly theoretically. I acknowledge what MSD has outlined, and I also have a problem with it. I often feel guilty about getting paid for what I do (as "meagre" as it is compared to those with equal skills and education in my area) knowing there are billions who are busting their asses to a degree that is often considered against human decency to get a mere fraction of what I get. I often actually enjoy my work, while I'm sure much of the work world globally is quite miserable.

And I take advantage. I get cheap electronics, cheap clothing, cheap bananas.

Just as one example, the fraction of our incomes that we spend on food is tiny compared to what most people pay. We have disposable incomes that to many would make us seem like royalty.

I often relish it in my ignorance, but every so often it depresses me that my society's advantages were built and are maintained on the backs of the miserable unfortunate overseas.

So, basically: I think capitalism as a mechanism is a swell idea. In practice, its impact is widely pretty shitty. I'd lean more towards Marxism proper if I weren't so nice and just wished that everyone would be nicer to each other.

 

Capitalism works for me...sometimes someone is leveraging my skills to make money...then I make money.
Or sometimes I leverage my own skills to make money for myself...but the others who use my services use it to make money or save money.

Whether or not I do a business for myself depends on level of obligation I want to commit.
Because running a business is a serious obligation...if you're going to keep it at a consistent level...and/or grow.
Sometimes, I don't want it...and it's easier to just work for another.

I think the key is what you put into it...and making sure you don't get hustled.

Capitalism is simply leveraging the abilities and efforts of a group of people...money is simply the exchange of that service.
People in mass are selfish...so this leverages the agenda of self-interests. Conflicts of interests are balanced.
For the most part, if you don't work smartly, you don't gain...and if you do, you do gain.

Not taking the examples given by extremes in the media...but the overall average.
Most millionaires are self-made...frugal, cost-aware...and balanced/responsible risk takers.
On average, that wealth...when inherited is lost in 2.5 generations.
Meaning you've got to work to get it...and you've got to work to keep it. At all levels.

Usually, those countries that are disadvantaged...have governments and systems that are corrupt, or belief systems that enforce classes.
That's probably why some of those people who take a risk...and leave those countries to more capitalist countries...tend to do better there.
Meritocracy and flexibility...with even rule of law.
That's the true source of your capitalist engine...and the more you have it, the better.

Sometimes that's why I think America got a leg up as far as it has.
Not because the people are "special"...but because they have a mindset to try for it, or speak up, not to stay in their "place"
At least not as much as other nations for as long as they did.
I've found the other nations, once they got rid of the classes, the limits, made law even, and got their own unlimited mindset...excelled in their own right.

Australia, Canada, etc...are very productive
and now as even "communist" nations go more capitalist, bit by bit...painfully, they are growing in strength.
Japan works their asses off...and constantly innovates. (but are they stagnating because of their own restrictions???)
Germany too...known for their work ethic...and innovation.

So I guess that's one other component to good capitalism...creativity, thinking outside the box.
Build the better mouse-trap...

 

My name is Lindy, and I'm a capitalist.
I'm a stealthy member of Capitalists Anonymous. I make the investments that allow businesses to expand, to do basic research, to develop new products and ideas, etc. My investments (and those of others like me) allow businesses, farmers and ranchers, small entrepreneurs, scientists and clever inventors to move their business or idea to the proverbial "next level."
I am a small potatoes player, but the (somewhat unreliable) statistics say that I'm in the top 5% for income and the top 3% for net worth. I have right at a million dollars in land, stocks, other financials, and cash.
But you would never know it by my lifestyle. I live in a middle class neighborhood, (Zillow values the house at about $130K) I do my own cleaning, shovel (or blow) my own snow, eat mostly at home. I drive a relentlessly reliable 12 year old SAAB that's approaching 200K miles. I have never owned a new car, or for that matter any car less than five years old. I started my first job at fifteen, though I worked at my dad's hardware store for as far back as I can remember. I pay my own health insurance, and I pay my income taxes (about $70K last year) and property taxes in three states. Some of my relatives know that I'm "well off" and laugh at my frugal and quirky habits. When they ask for advice, the first thing I say is to never borrow money to buy depreciating assets. Then they go buy or lease a new Ford F-250.
Some of my income is taxed at capital gains rate, which is my reward for putting my wealth at risk. I bought my first stock at age twenty, and believe me, there have been losses as well as gains. It boggles my mind that I started with a $2800 investment in 1996, and now I play with hundreds of thousands, and am now a millionaire. Or thereabouts.
Capitalism is not perfect, but no system is. I appreciate the pragmatic attitude of Levite. Baraka_Guru, and rogue49, but I see a lot of self-righteous sour grapes here. Fuck capitalism indeed. And replace it with what? 1917?

 

If only more people were like you described...they would be well off.
But most tend to squander it trying to keep up with the Jones'...use it for short term indulgences, don't have the patience for long-term investment
or get caught by their ignorance or trying to keep to some strange ideal.

Sure, some get caught by circumstances beyond their control...but this is more the exception, than the trend for most.

It's about Warren Buffet's analogy for success...The Snowball.
(great book, BTW)

 

It seems that binary thinking is ingrained on the American psyche. They seem to be an all-or-nothing sort of people. I'm sure the two-party political system has something to do with it, though I'm unsure which is the cause and which is the product. They most likely perpetuate each other at least.

Many Americans also seem to view nuances or grey areas with suspicion if not outright disbelief, and consider those who acknowledge the reality of these things to be "unprincipled" if not "un-American."

I find it odd.

 

Said the Canadians.

What I overheard standing there was not as simple as true or false, black or white. I heard things similar to this video.


View: http://vimeo.com/75214858

 

Replace it with any number of social democratic economies that have done better than ours. Seriously.