[quote]orion wrote:
LIFTICVSMAXIMVS wrote:
orion wrote:
Capitalism leads to excellent results because the process of deepening of capital makes our societies richer and richer and richer which is a good thing when it comes to things like food, shelter, health, education, etc…
No, it doesn’t because it’s relative to the amount of total monies in the pot. The more money put into the system the greater the inflation rate. It doesn’t take a mathematician to see that inflation, in fact, causes the disparity between the rich and the poor to grow. Suddenly, now my $100 doesn’t go as far as it used to and we find the Federal Reserve increasing interest rates to combat inflation. Well, now the extra .25% on my loans affects me greatly because I am not rich and rely on capitalists to lend me money. The rich get rich and the poor get poorer. A perfectly flawless system if one has extra capital to lend!
Since capital growth is faster than population growth the wages MUST rise.
They don’t rise fast enough to account for inflation.
The process of capital deepening has nothing to do with inflation.
In fact, if capital and consumer goods grow and money supply stays the same, a slight DEFLATION ,as is the norm for currency based on gold, occurs.
You money actually becomes worth more and more!
The reason this is not the case is fiat money backed by nothing and banks that are allowed to lend more than they actually have in savings, i.E SOCIALISED MONEY.
Which, again, has nothing to do with capitalism, that could easily deal with competing currencies and a lot with government intervention.
You are right though that inflation slowly and steadily takes your money and gives it to the rich and the government.
One more reason to limit government powers.[/quote]
I like talking theory especially when the facts speak for themselves. A dollar today is less than 100th of what it was worth 100 years ago. Thirty years ago a car cost 1/20th of a house and a house could be paid for with approximately 2 year’s annual salary or less.
Today, a car is about half a year’s salary and 1/10 the value of a home and the average home in my neighborhood costs over 10 years salary. Now, many of these reasons are organic to the market but it doesn’t take a genius to see the disparity to the cost of living and the average wage.
How has capitalism in this case improved the average person’s living conditions especially since it now takes five incomes to raise a familiy by 1970’s dollar values?