Bullet Proof Ideas

CC : The Capitalism Crisis

October 8, 2008 at 2:38 am (Capitalism)

Even though the modern capitalism started with the first industrial revolution ( late Sec. XVIII early Sec. XIV ) , the idea of the private property institution, exchanging products for money and even banks ( and slavery ) can be found in ancient civilizations , like Romans.Capitalism has destroyed cultures , unemployed people and spread poverty all over the world.

Even though the modern capitalism started with the first industrial revolution ( late Sec. XVIII early Sec. XIV ) , the idea of the private property institution, exchanging products for money and even banks ( and slavery ) can be found in ancient civilizations , like Romans.Capitalism has destroyed cultures , unemployed people and spread poverty all over the world.

Having an  economy strictly based on the idea of making profit,consuming and reducing the production costs leads capitalism on a Vicious Circle with a peak and a decay.

Those decays may be named as “Crisis”, which provides an endless feedback loop. The 1929′s great deppression of NY stock market is a good example.

USA since industrial revolution had its economy growth by selling manufactured products to europe.
After WWI , Allies European countries* ( Uk and France ) had just been into a war, their economy was weak .Once allies are not able to buy USA products ,  What is USA supposed to do with all exceeding produtcs ?

The money spent on production,injuried factories , what forced them to fire everyone and close the place.Worst part is that , many people had their money in Stock Market , which is totally connected with the factories.Conclusion :Unemployment and Poverty rised in USA.

Capitalism is an uninstable economic system.Full of social inequalities.The most important point is the individual profit, no matter what it takes.

The crisis had its end when Franklin Roosevelt, presidend of USA decided to let the state operate a bit in economy.

In capitalism, the state is confined to defining the basic laws of market, besides that, there is the idea free trading.It becomes a challenge, the one who can produce the best product with the lower price wins.It doesnt matter if you stole the raw material from a poor country , used children as workers or polluted rivers.

But with this crisis , the intervention of the state was the only solution.A sequence of programs , called New Deal , was responsable for this recovery in economy.His main  goals was giving work to the unemployed and a reform on business and finacial practices.He wasnt worried about health, education or seccurance.He was just trying to give end the unemployment, so people can work , have money and buy.Buying is a keyword in capitalism.

So, USA had once again a growth of economy, like i said before , its peak.

But, is it worth it to have an economical system where crisis are common and unexpected ? Seems like government play cards with people’s life,  no one knows whats the next card.

Its important to infer that ’29 crisis leaded many other countries to a decay (like Germany, Canada , UK and even France ) in economy.And that Dicatorships like nazism and fascism were precceded by an economical crisis.

The crisis period of occurance is gettin shorter, the current bank crisis ( Lemons Brother for example ) in america is just another decay in the vicious circle that started almost 80 years ago.