Simon H.Johansen wrote:Darth Servo wrote:
Not "by any means necessary". There are many ways of getting rich that are strictly outlawed in capatilist societies: stealing, drug dealing, insider stock trading, etc. And most people follow those laws.
OK, I exaggerated a bit. But some corporations (such as Coca-Cola) tend to exploit loopholes in the law to avoid taxation and maximize profits.
And most of those laws were established BEFORE the capitalist system came into being.
Umm. . . capitalism wasn't a new system. It was just giving a name to a system which is as old as humanity itself.
All it takes for capitalism to start is for person A to go to person B and say "I'll give you resource X if you give me resource Y". This basic barter economy makes perfect sense to most people.
To get to a more modern capitalist economy you need at least two more things:
1. the ability to move resources in space
2. the ability to move resources in time
The first is the role of distributors and wholesalers and their ilk - they establish a link between person A & person B, when there is some geographic or communication barrier, and charge a bit extra for their effort. After all, an apple in the orchard doesn't do me much good, but one at the supermarket is of great benefit - I'm willing to pay a bit extra for the convenience.
The second is the role of banks and the stock market. With banks, the borrower can acquire additional resources
now, and pay them back later (with a little extra thrown in to pay the bank for the service it is providing). The stock market is similar, but in reverse - investors provide resources to the company for the company to make use of. The investors then make a profit as the shares (theoretically) increase in value or pay dividends.
These two categories are the ones where people can sometimes feel like they're being "ripped off", because the service the distributors and financial institutions provides can be so intangible. However, the following example might help:
Person A knows how to create item X, but wants to be given Y before creating it
Person B wants item X, but can't give A anything he wants
Impasse - without some personal connection with A, B has no way to get the item they want. Neither A nor B gets anywhere until B has had the time to earn the necessary money to pay A. Slow, at best, and frequently impossible. Enter the finance sector:
Bank: We'll give you Y now, but you have to give us 2Y later.
Person B gets Y from the Bank, gives it to Person A and receives item X in return. Over time, B earns 2Y and pays the loan back
Before the loan:
Bank has Y
B has nothing
A has nothing
After B pays back the loan:
Bank has 2 * Y
B has item X
A has Y
Sure, the item ended up costing B twice as much - but B has also had it for twice as long (or possibly, without the loan, B would never have acquired item X at all). Perhaps item X was even something which helped B earn back the money they owed the bank (for example, an investment loan for property, or a start-up loan for a small company).
Hell, misunderstanding the role of moneylenders is older than the Bible
(chalk another piece of stupidity up for the Bible - all of the injunctions against usury, simply because the authors didn't have a clue about economics)
"People should buy our toaster because it toasts bread the best, not because it has the only plug that fits in the outlet" - Robert Morris, Almaden Research Center (IBM)
"If you have any faith in the human race you have too much." - Enlightenment