Capitalism Is A Scam Here Is Why…..

[dropcap]T[/dropcap]he basis of Capitalism is not too hard to understand. In the first place, you have to understand that money is not an even unit of exchange. It is a artifact to redistribute wealth.  Money in reality is just worthless paper, and the goods and services produced by society are what has real value. But a “bait and switch” occurs. Money is made into the sole “gatekeeper” for goods and services. You cannot get goods and services without money. When this happens goods and services in themselves become worthless; and money which constitutes the only means to them becomes actual wealth. Money has co-opted the value of goods and services, and has made the worthless paper that it actually is into a deviant instrument of constituted wealth. This is true.

Then the next thing you have to figure out, is the “purchasing power” of currency. In the political economy, how much of the “purchasing power” of currency is needed to pay for labor and raw materials, and how much of the purchasing power of currency makes up what Marx called: “Surplus Value.” Lets say the “Sustenance Level” of the currency is around 25%, and the “Surplus Value.” is around 75%. This means that you can charge a profit of 75% on all goods and services, and still stay in a sustainable range and not endanger the economic life of society, which is being taken care of by the afore mentioned 25%. Thus the holders of profit can allocate in this way 75% of the wealth of society, and use that wealth to buy back and own everything. Generally this is called “Wage Profit Co-efficients,” or “Disparity” but it is really more complicated.

Next you have the banks. The way they make money, is to distribute more money to society and corporations then can be matched in a society’s “Gross Domestic Product.” Since goods and services are worthless and money is everything, this means simply that corporations and society are borrowing more money than they can pay back. If the money exceeds “Gross Domestic Product” then this means that the society is borrowing money beyond its collateral or worth, and beyond its productive capacity. This in-debts the whole society and even corporations to the banks.

Once this happens the banks then tighten the flow of currency after the inflationary stage, to a deflationary cycle to make currency harder to obtain, thus increasing its value through relative scarcity. This causes the wealth that society has to  be sucked up by the banks through foreclosure and interest. And at this point interest rates can be raised to increase profit. Thus alternating cycles of inflation and recession insure that the banks keep making money.

The next question is how do corporations and banks split the 75% surplus value.

The banks get 60% through society and corporations paying back their so-called “debts” and corporations get to keep 40% of their wage/profit co-efficient or leeching of surplus value from the political economy described before, factoring in sustaining and surplus forms of purchasing power, as well as use value and surplus value in terms of socially sustainable profit. Then the workers and consumers foot the bill forever.

Thus Capitalism is a scam…..