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PaperclipPerfector  2yr ago (text post)   22838 thread views

Culture War Roundup for the week of October 9, 2023

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Regarding semantics, I don't know what to tell you, this is a standard academic example for 'the contradictions of capitalism.'

Typically the most productive way to push these kind of conversations forward is to go back to definitions, to make sure if the difference of opinion stems from people merely using different definitions.

The reference to academia is a bit troubling, you make it sound like you don't really believe these arguments yourself, just relaying someone else's thoughts.

In the case where marginally lower employment leads to disinvestment in manufacturing and investment in financialization and speculation instead, and this process creates a feedback loop that drives more and more of the economy into those sectors until the bubble bursts and there's a large-scale recession, that's not really describing minor course corrections anymore. It's describing a cyclical failure where capitalism cannot function under it's own success, which I think is reasonably described as a contradiction.

Why? By your own logic, the failure is cyclical, which means it is followed by a recovery. The general trajectory of capitalism, even taking these periodic crashes into account, is clearly that of growth. If you compare it to the results of systems that were supposed to be an alternative to capitalism, the contrast is even more stark. So I just don't see anything contradictory in it, and it does indeed look like a self-correcting system.

Capitalists don't explicitly acknowledge that!

Then it looks like you're just completely unfamiliar with capitalist theory. They go to great lengths to point out that the entire purpose of the system is "rational allocation of scarce resources". That statement alone is at least double-redundant by my count, which shows how much they wanted to hammer the point home.

During World War I, farmers worked hard to produce record crops and livestock. When prices fell they tried to produce even more to pay their debts, taxes and living expenses. In the early 1930s prices dropped so low that many farmers went bankrupt and lost their farms. In some cases, the price of a bushel of corn fell to just eight or ten cents. Some farm families began burning corn rather than coal in their stoves because corn was cheaper. Sometimes the countryside smelled like popcorn from all the corn burning in the kitchen stoves.

Again, this is a contradiction: capitalism is so good at making goods cheap that we need laws to make them more expensive

3 times cheaper than nowadays is indeed a good deal, but hardly post-scarcity. The fact that they were burning it instead of coal, is just a statement about the relative availability of coal, and we do it too nowadays (never heard of bio-fuels)? In fact, if anything this is probably an example of the rationality of capitalism relative to other systems. A central planner insisting "corn is for eating, not for heating" would be wasting coal, while letting an abundant resource go to waste. Also, the 1930's cannot be in any reasonable way be described as an example of unregulated capitalism.

The WWI example is even worse. War, especially in the past, has always been a time of great uncertainty, so it's not surprising people ended up producing too much or too little of something, because they were expecting the war to go a certain way, that didn't come to pass. None of this is an example of capitalism making goods so cheap that we need laws to make them more expensive. To show that, you'd need to show that the producers refused to correct production afterwards. Otherwise, it's not a contradiction at all.

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