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what you dont know about capitalism

Posted by: | September 25, 2017

Capitalism….

The global elites, bankers, venture capitalist all profess  most countries  run a free market, free trade, where the prices of commodities is determine by demand.

No backdoor price fixing,  price competition, bla blah bla… but the last financial crises left many scratching their head…..

When the big banks were bail out, yes… bailed out in  the so called capitalist system and the small business man  and woman were left to ruse.

What kind of capitalist system bailed out some institution and not others?

Picking winners and losers……

Capitalism should bring about competition not mergers?

why so much merger and the big companies taking over smaller rivals. Capitalism is suppose to regulate this?

 

A  renowned writer wrote Capitalism doesn’t care if people get rich or go broke. It only offers the promise of riches as lure to get people to invest money, the purpose of a lottery is not to make people rich. The purpose of a lottery is to make money by selling tickets. The lottery only offers the promise of getting rich as a lure to get people to buy tickets.
REGULATION AND PRICES

In a true capitalist system there is  choice of  possible variety of products offered at the lowest possible prices so that the public has the greatest possible number of product choices at the lowest possible prices.

Entrepreneurs hate low prices and they hate price competition but these are the fruits of capitalist system. 

Direct conflict between fruit of a free trade system and capitalist.

Capitalists are in business to make the most possible money. They want to charge the highest possible prices not the lowest ones. They don’t give a damn about saving people money or benefiting society.

In fact, capitalists don’t want to save their customers any money at all. Quite the opposite. They want to take as much of their customer’s money as they can get.

Capitalists only lower prices when market factors force them to. Every capitalist wants to eliminate price competition for their product.

Every producer wants to charge not the competitive price but rather the monopoly price, the highest price that the market will bear.

This is where Regulation plays a big role

The worst enemies of capitalism’s basic principal of free-market competition are the capitalists themselves.

 In a true capitalist list there should be no monopolicing an industry or price by a company because regulation is suppose to prevent this.

Lack Of Standards

In order to have price competition the consumer must be able to quickly, easily and effectively compare and choose between similar types of products from different manufacturers.

Certain  standard of products and services are required in a true capitalist system

One of the goals of capitalism is to create better products. A race to the bottom destroys better products and encourages worse products, exactly the opposite of the goals capitalism was created to achieve.

Without price competition and a level playing field capitalism can’t work, no picking of losers and winners.

Why is Africa and part of Asia not allowed to participate fully in the Capitalist or FREE TRADE economy? protectionism?

They are not  allowed to export their products but can import a lot of  rubbish and outdated goods.

Some  capitalist countries still dont allow imported goods in some sector, fearing it will destroy certain industry in their country

 

Why are Venture Capitalist allowed to  make  money by increasing market power through take-overs, mergers and acquisitions that don’t necessarily result in better performance of service or product. ( where the regulators?)

 

How come when big companies make huge profit and  only the shareholder gets paid well and not the staffs? 

 

What kind of capitalist system shareholders feel no pinch when company go boost but employees looses  their  pension contribution.

If  you think this is capitalism think again…….

 

 

 

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