Here’s a summary from Karl Marx on failure of Capitalism:
1. Inevitability of monopolies, which eliminate competition and gouge consumers and works.
2. Lack of centralized planning, which results in overproduction of some good and underproduction of others, encouraging economic crises such as inflation, slumps, depressions.
3. Demands for labor-saving machinery, which force unemployment and a more hostile proletariat.
4. Employers will tend to maximize profits by reducing labor expenses, thus creating a situation where workers will not have enough income to buy the goods produced, creating the contradiction of causing profits to fall.
5. Control of the state by the wealthy, the effect of which is passage of laws favoring themselves.
Redistribution or war or Elysium. Welcome your thoughts!
Troubling headline but perhaps I can’t necessarily disagree with the sentiment. Remember the Romans:
By 53 B.C., factions in the Senate had paralyzed the Roman government. The annual consul election degenerated into a contest of who could bribe the most voters. Street riots erupted. In a desperate move to restore order, the assembly elected General Gnaeus Pompey to serve as sole consul for a year.
For those that don’t know him, Seth Klarman is considered one of the greatest investors ever, behind Warren Buffett. His book “Margin of Safety” sells for hundreds of dollars on Amazon. So I feel his opinion is important (not always right, just important) This is quick read on the economic developments of the US since the financial crisis in 2008 and it’s not optimistic!
I found this particular quote interesting:
As Alexander Fraser Tyler said over two centuries ago, “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury.”