The huge mistake in capitalist thought

capital: wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing

With this definition in mind, the goal of capitalism is to accumulate wealth, is it not? I am sure that more practiced players in the game of semantics could argue me out of this point, but for the purpose of this post, let’s assume that the capitalist system exists to perpetuate wealth among individuals, companies, or organizations.

If the purpose of capitalism is to gain wealth, then inevitably there will be some deceitful ways of acquiring capital. After all, a capitalist is encouraged to make money wherever possible (if you happen to be a devout capitalist and disagree with this statement, then I will welcome a friendly discourse on this matter). As long as the bottom line is showing a gain in the profit margin, then the ways in which money is made are largely irrelevant. Look at the disaster in Bangladesh as a prime example. Over a thousand impoverished workers died a horrific and completely avoidable death due to the incessant need of the business owners to make money. Then you can think about companies that produce weaponry intended to end a mass amount of lives (in the name of freedom and prosperity for a small section of the world’s populace, of course). Then of course you can bring up the companies that contribute to making the earth bald before her time (a phrase borrowed from H.D. Thoreau) in the interest of making profit. These examples simply scratch the surface of the detrimental ways in which capital is gained by the faithful servants of the capitalist system.

I must now direct your attention to the amount of profit that is seen as a result of the Congressional practice of setting the interest rate on federal student loans. The following information has been reported on by Shahien Nasiripour of the Huffington Post (the link to his article will appear below). In this year alone, the United States government stands to make $51 billion on existing student loans for higher education. That number is roughly equivalent to the combined profit that the four largest U.S. banks (JP Morgan Chase, Bank of America, Citigroup, and Wells Fargo) reported last year, is more profit than what was made by each of the two most profitable oil companies (Exxon Mobil and Chevron) last year, and is ten billion dollars higher than the Apple corporation’s bottom line in 2012.

During election season, the politicians who are responsible for the interest rates of student loans will say that this country needs to invest in the future. Well, Congressional leaders, young people are the future of this or any country. Instead of putting eager students in a system that saddles them with debt, invest in them! Give them an interest rate that is manageable, not miserable. It is the upcoming generations that will have to literally pay for the actions of the current political scene. Student loans are second only to home mortgages in the realm of household debt. With this type of debt, how will college graduates save money for a car, a house, or a retirement, when they have a large monthly payment that applies mainly to the interest of their federal student loans? This is such a folly in the capitalist mantra. I am speaking directly to the capitalist when I say: if you are so quick to make money wherever you can, then by making every class but the business class broke and disheartened, you are not only hurting your potential earnings, but you are destroying a society that has the potential to live well within its means.

http://www.huffingtonpost.com/2013/05/14/obama-student-loans-policy-profit_n_3276428.html

Well done, Switzerland!

When you think of Switzerland, what do you think of? For me, I think about Roger Federer, neutrality, the Alps, cheese, multi-purpose pocket knives, and Swiss bank accounts like you see in action/espionage movies. Swiss bank accounts are sought by wealthy people from all over the planet. Bankers are certainly welcomed in a place like Switzerland, which has a long history regarding the banking industry. You would think that in such a country, capitalism would be running rampant. You might also imagine that Swiss policies on CEO compensation would be bought out by lobbyists, much like what happens here in the States. I had these very thoughts, but an article that I read today proved me wrong.

The Swiss voters passed a measure today that would put a cap on pay-outs to top executives. This legislation has been dubbed “The Fat Cat Initiative.” It wasn’t a close vote either. Nearly 68% of Swiss voters punched ‘yes’ into their ballot.

You can read more about this story for yourself here:

http://www.bloomberg.com/news/2013-03-03/swiss-voters-set-limits-on-ceo-paychecks-sf1-projections.html

In frustrating times such as the present, this type of story is uplifting. If a pro-banking country can say that enough is enough, then there is hope yet for this country. I am confident that we can pass a similar bill and finally get some economic sanity. We’ll see how long it takes for us to pass a similar vote.

The capitalist classroom

What if I set up my classroom to mirror the capitalism that is demonstrated in The United States? I envision that it would be something like this…

On the first day of school, students would bring in their supplies. We would not put them in a pile and share what we have throughout the school year. Instead, students would keep all of their materials to themselves. The students whose parents didn’t have enough money in August to purchase a ruler, a binder, a protractor, scissors, or glue would have to improvise during math class and when completing art projects. Each desk would be viewed as private property. Students who trespass would be subject to the discretion of the desk’s owner. Students could rent out their desks to other grade level students who come into the classroom for only one or two class periods. The profit line is the bottom line to an aspiring capitalist. Entrepreneurial students could bring in top-of the line supplies and set up payment options for classmates in need of the service (think pay-as-you-go pencil sharpener, three-hole punch, mechanical pencil lead, and pencil-top erasers).

At lunch, the students who did not bring a lunch will have to ask their friends who did bring lunch if they can spare a bit of food. The students who brought their lunch would be asking why they have to share what is rightfully theirs. Out at recess, students who brought a ball, a jump rope, or a frisbee would only share their equipment with other people who brought equipment for recess. Those kids who didn’t bring any type of ball would have to make up their own games.

After all, sharing is not a viable economic solution in a capitalistic environment.

Grades could be bought at the right price, or the students could ask their parent’s friends to lobby for the highest grades. I would be complicit in this type of activity, because I could further my position in the school if I associated with people who can garner power easily.

Now, does this type of classroom match the classroom that you grew up a part of? I highly doubt it. Classrooms thrive on socialist ideas – sharing, community equipment, cooperation, and equality for all. Most students feel hurt by “budding capitalists,” the kids who brag about their new school supplies, new school clothing, and awesome selection in their lunch box. Students grow up realizing the benefits of treating everyone the same. It is only when they grow up and become entrenched in the capitalist system that this country currently has that they see the world as a place that owes them something instead of the other way around.

How capitalism truly functions

I know that there isn’t a perfect way to set up society, especially with a host of imperfect people who are hell-bent on making things difficult for others. But do we really have to settle on capitalism as our societal upbringing? If our governmental system can be overthrown, then our societal system can too. Changing these firmly-rooted ways of life in the States will be extremely difficult, but there’s no sense in not thinking of ways to take real action in promoting a beneficial change for the majority of people who live here.

If I have already posted this picture along with my thoughts about it, I apologize. I feel strongly enough about this topic that I could write about it five times a week. When I first found this picture, I was astonished at its accuracy. Then when I found out that it was drawn in 1911 during a labor movement, I felt like I was looking at a relic that needed to be handled with extreme care. Look at the bottom of the pyramid. Do you see yourself down there? I knew that that “weight of the world” feeling was due to something! Turns out it is the capitalist system is the burden on the common man’s back, and with a shift in societal values, that burden could be banished for a long time. The lines next to the common man at the bottom of the pyramid: We feed all. We work for all. Try arguing against that. The true working man does everything for this society. Forget all of this hogwash about the “givers versus takers,” or “job creating businessman.” The common man does the work, and keeps society going. Those of you who work in education know that the most important people in the school are the janitors and the secretaries. Without these positions, the school will not run effectively.

The upper tiers of the pyramid are the “fat cats.” Look at the way they’re dressed for a clue as to what they do for a living. The second tier people get to wear their fancy dinner attire to accommodate for their lavish lifestyle. The next tier up has the military men, and I’m not quite sure that today’s enlisted men and women should be halfway up on the pyramid. The behind-the scenes military men should actually have a higher up position on today’s pyramid, for they control far more now than they did in 1911. The fourth tier belongs to the religious sect. I think this is a fitting spot both in 1911 and today. The fifth tier is the ultimate spot for a man in the pyramid. I know in the picture it looks like a king, but in today’s time, I can equate that with a Wall Street kingpin. These are the true masters of the world, for they decide how society is allowed to run.

Like I’ve said before, I know that I am cynical. You may very well look at this rationale as bogus, and I’m sure that you’d be correct in doing so. I simply think that there is a much better way of running our society. Capital should not be king, otherwise people will make decisions based on monetary visions of right versus wrong. Labor should be the focus.