The economic justification for Capitalism

[Joker]

Many people make the argument that capitalism is some sort of "natural" system that cannot be replaced. However, this is nonsense, because in reality Capitalism is a social construct that demands certain rules and regulations for it to function (for example, private property rights, contracts enforceable by law, the commodification of factors of production like Labour etc) None of this is natural, but was introduced through political and historical processes that can be overturned.

Moreover, the economic argument for Capitalism is based on a make-believe model of "perfect competition". In Perfect Competition, there is the assumption that all economic agents have perfect information, there is no market power (i.e. there are an infinitely large number of firms competing against each other, each selling a homogenous product), prices are flexible, and that people are completely rational. It's clear that most of these assumptions are in reality violated, so why do we still believe that Capitalism can work as perfectly as this stylised model suggests?

There are as we speak significant protests against Capitalism all around the world, and I'm glad about that tbh. For too long we've been told that there is no alternative to the current economic system, and that economic theory has proven that Capitalism works, when it reality the theory proves exactly the opposite.

[Coney]

I'm waiting for Cripps' summary. :unsure:

[Cripps_orig]

I'm waiting for Cripps' summary. :unsure:RVPs shit

[Syn]

These sorts of arguments/discussions irritate me. 'Perfect competition' isn't a stylised model for the same reason you said - the data doesn't fit. Nobody uses these simple models you learn at school or university. They can, at best, serve as a starting point. I have worked in regulation where models of competition (including the unrealistic assumptions you're talking about) are adapted; after a series of careful refinements you have something which resembles the structure of a particular industry. Then you make policy proposals. What do you mean the 'theory proves exactly the opposite'? It doesn't. And you can't go anywhere with this discussion because you're using undefined, loose terms like 'capitalism'. What defines whether a set of policies falls into the 'capitalism' category?

Economic theory doesn't propose any ideology is correct. It may propose a normative foundation in which to make decisions under very specific requirements. You first look at the data; role of institutions etc. and then look to adapt.

[Niall_Quinn]

Talk is cheap, either we're killing the board or we aren't killing the board. Everyone make up their minds and let me know.

[PGFC]

Many people make the argument that capitalism is some sort of "natural" system that cannot be replaced. However, this is nonsense, because in reality Capitalism is a social construct that demands certain rules and regulations for it to function (for example, private property rights, contracts enforceable by law, the commodification of factors of production like Labour etc) None of this is natural, but was introduced through political and historical processes that can be overturned.

Moreover, the economic argument for Capitalism is based on a make-believe model of "perfect competition". In Perfect Competition, there is the assumption that all economic agents have perfect information, there is no market power (i.e. there are an infinitely large number of firms competing against each other, each selling a homogenous product), prices are flexible, and that people are completely rational. It's clear that most of these assumptions are in reality violated, so why do we still believe that Capitalism can work as perfectly as this stylised model suggests?

There are as we speak significant protests against Capitalism all around the world, and I'm glad about that tbh. For too long we've been told that there is no alternative to the current economic system, and that economic theory has proven that Capitalism works, when it reality the theory proves exactly the opposite.

Lend us a tenner, go on, I'll give you a score back in a weeks time, promise.

[Letters]

There are as we speak significant protests against Capitalism all around the world, and I'm glad about that tbh. For too long we've been told that there is no alternative to the current economic system, and that economic theory has proven that Capitalism works, when it reality the theory proves exactly the opposite.

The problem is I haven't heard any of the protestors suggest an alternative. :shrug:
You can't protest against something without saying what you think should happen instead.

[PGFC]

The problem is I haven't heard any of the protestors suggest an alternative. :shrug:
You can't protest against something without saying what you think should happen instead.

I PROTEST!!

[Letters]

GW isn't a democracy

:pal:

[Niall_Quinn]

GW isn't a democracy

:pal:

Face-ist

[PGFC]

GW isn't a democracy

:pal:

Ok Napoleon :rolleyes:

[Letters]

*QI BUZZER*

Napoleon was taller than average at the time he lived.

:cool:

Facts :bow:

[Flavs]

*QI BUZZER*

Napoleon was taller than average at the time he lived.

:cool:

Facts :bow:

Doesnt really matter as he was also a twat, french, a dictator, a bit gay oh...


he's also fat

[LDG]

Doesnt really matter as he was also a twat, french, a dictator, a bit gay oh...


he's also fat

And a cunt.

[Letters]

Also, isn't this a bit like how the moaners moan their moany tits off after a few seasons without a trophy (I know it's more than a few now but the moaning started ages ago). I don't remember anyone protesting about 'the system' when it was generating prosperity for lots of people. Not that I'm saying the system is perfect but is there a perfect system? I suppose the real question is whether there's a better system.

[LDG]

Boom and bust is the only way. IMO of course.

[server too busy!]

Doesnt really matter as he was also a twat, french, a dictator, a bit gay oh...


he's also fat

Doesn't that pretty much describe you...

[Flavs]

Also, isn't this a bit like how the moaners moan their moany tits off after a few seasons without a trophy (I know it's more than a few now but the moaning started ages ago). I don't remember anyone protesting about 'the system' when it was generating prosperity for lots of people. Not that I'm saying the system is perfect but is there a perfect system? I suppose the real question is whether there's a better system.

Like Dirty Harry says "yeah i hate the system as much as anyone but until someone comes along with a better one i will stick with it"

[Flavs]

Doesn't that pretty much describe you...

I'm also fat

[LDG]

I'm also fat

and a cunt.

[Flavs]

and a cunt.

:upset:

[Letters]

We're doomed. Doomed! Doooooooooo!

http://www.bbc.co.uk/news/business-15755835


Bank of England governor Sir Mervyn King has said Britain's economy could stagnate until the middle of next year.

The Bank cut its 2011 and 2012 growth predictions to about 1%, warning the global economic outlook had "worsened".

Delivering the Bank's quarterly inflation report, Sir Mervyn said the eurozone debt crisis was the "single biggest risk" to the UK.

But he said inflation had peaked and was likely to fall sharply over the next few years.

The rate of Consumer Prices Index (CPI) inflation in the UK fell slightly to 5% during October, down from a rate of 5.2% the month before.

Sir Mervyn also said that the UK's economic problems were shared by other countries.

etc.

[Coney]

etc.

:gp:

[Niall_Quinn]

We're doomed. Doomed! Doooooooooo!

http://www.bbc.co.uk/news/business-15755835



etc.

We're not doomed, because you don't kill the ox that pulls the gravy train. But we are manipulated, lied to, abused, robbed and disenfranchised. We should probably do something about that. The worst thing though is human potential, this has been held in the gutter by a few slimy scumbags for too long now and we should definitely do something about that. It's time to move on.