Post 4424083 - (inefficiencies of capitalism)

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inefficiencies of capitalism

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peebo
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Posted: Thu Feb 23, 2012 12:39 pm Post subject: inefficiencies of capitalism

http://zinelibrary.info/files/inefficiencyofcapitalism.pdf this is an interesting pamphlet by brian oliver sheppard examining what he sees as inherent inefficiencies in capitalism. have a read at it and discuss at your leisure! _________________ “Civil government, so far as it is instituted for the security of property, is in reality instituted for the defense of the rich against the poor, or of those who have some property against those who have none at all.” Adam Smith

Fnord
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Posted: Thu Feb 23, 2012 2:06 pm Post subject:

The only real inefficiencies are in the people who fail to become successful in a capitalistic economy.

peebo
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Posted: Thu Feb 23, 2012 2:09 pm Post subject:

sheppard identifies ten inefficiencies in the article. do you disagree with him on all of them? there is a short summary of his points here: http://juicedbooks.blogspot.com/2011/06/inefficiency-of-capitalism-anarchist.html The Inefficiency of Capitalism: An Anarchist View by Brian Oliver Shepphard Summary: Sheppard points out that it has become automatic to think of capitalism as being efficient because this is what is oft repeated. Sheppard uses a neat list to dispell the accepted view and believes that the system is actually inefficient. 10 Inefficiencies of capitalism 1. Product duplication 2. Systematic Unemployment 3. Cost Shifting 4. Waste of Unsold Goods 5. The inefficiency of Hierarchies 6. Planned Obsolescence 7. Price Gouging 8. Creation of False Desires 9. Parasitic Jobs 10. Inefficient Distribution Patters Notes on the Hx of Capitalism The system developed out of feudalism after the fiefdoms and lords began to disappear (. It is thought that serfs worked no more than an average of four hours a day. By modern standards, serfs were extremely lazy. As agricultural workers, there were long winter seasons without work to be done. The newly independent serfs found themselves needing to rent themselves out to people in order to buy their own food, pay new housing costs etc. People started moving around a lot more, seeking the most comfortable living conditions possible. Other contributions to capitalism were the rise of Protestantism, mercantilism and the Enclosure Acts that abolished the Commons (in England) (. Working Definitions Capitalism - system by which there is private ownership of the means of production Efficiency - this is a loaded term that absolutely cannot be read as being something that is automatically positive. What is efficient for a business, may be bad for society or the environment. "Efficiency" and "convenience" as applied to our modern consumer society are words used to indicate that there is about to be less service, the consumer will do the work, or pay a fee. For example, automatic checkout lines at grocery stores, fast food restaurants and ATM's are all referred to as being fast and convenient. Companies find ways to get unthinking consumers to do labor and slyly redesignate the labor as "fast" and "fun." Inefficiency #1 Product Duplication Classic example would be breakfast cereals and bars of soap. It appears that people are making important decisions, but all of the products are remarkably similar, overpriced, and shoddy. For example, a person could buy unbranded whole oats for 5% of the cost of the processed oats and have a much healthier breakfast, getting more fiber, less sugar in the diet etc. (14). Inefficiency #2 Systematic Unemployment Capitalism would not work if everybody had full time employment. "Work" meaning it would decrease profits, until the system collapsed. Economists have looked under the microscope and discovered that there is something that, like gravity, exists, and this is called the Natural Rate of Unemployment (NRU) (1. There is some debate, but economists believe the NRU is between 4-9%. When the economy dips below the NRU, the economy becomes inflationary, as workers can begin demanding better wages and there is no competition for jobs. Because one must always remember, without competition, this divine system would cease functioning. Inefficiency #3 Cost Shifting Private interests seek to lower costs by pushing them onto the public sector. The military industrial complex in US serves heavily as a subsidy to technological firms. Another example would be how the auto and oil industry profits enormously from public infrastructure. Inefficiency #6 Planned Obsolescence Vance Packard's classic 1957 book The Waste Makers discussed limited life spans of products (23). In the 1930's a GE engineer proposed increasing sales by making lamp bulbs that lasted for the duration of only one battery cycle. Many products tell consumers when a product needs to be replaced using things like indicator strips. Many of these indicators tell consumers the products wear out when in reality, the products are still useful. Inefficiency #7 Price Gouging Decreased supply supposedly with increase demand, so limited editions and things like that are released. Video game consoles are released gradually. A classic example is the Cabbage Patch Kids dolls in the 1980's (24). _________________ “Civil government, so far as it is instituted for the security of property, is in reality instituted for the defense of the rich against the poor, or of those who have some property against those who have none at all.” Adam Smith

ruveyn
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Posted: Thu Feb 23, 2012 2:14 pm Post subject: Re: inefficiencies of capitalism

peebo wrote:

http://zinelibrary.info/files/inefficiencyofcapitalism.pdf

this is an interesting pamphlet by brian oliver sheppard examining what he sees as inherent inefficiencies in capitalism. have a read at it and discuss at your leisure!

Nonsense. Manufacturers make what their customers will buy. Consider the fate of the Edsel for a moment.

As a rule that which does not sell, will in short order, cease to be produced.

Only the government with their guns and jail cells can compel people to buy what is not wanted.

ruveyn

peebo
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Posted: Thu Feb 23, 2012 2:20 pm Post subject:

one simple example is that of uk supermarkets throwing away something like 20 million tons of food every year. how would you explain that? _________________ “Civil government, so far as it is instituted for the security of property, is in reality instituted for the defense of the rich against the poor, or of those who have some property against those who have none at all.” Adam Smith

ruveyn
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Posted: Thu Feb 23, 2012 2:23 pm Post subject:

peebo wrote:

one simple example is that of uk supermarkets throwing away something like 20 million tons of food every year. how would you explain that?

The tonnage that sells pays for the tonnage that is tossed.

Under the best of circumstances there will be items that are not cleared off the shelves. That is because at times more is offered to sell than there is willingness (or ability) to buy. It is impossible to exactly balance supply and demand.

ruveyn

ProfumoAffair
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Posted: Thu Feb 23, 2012 2:35 pm Post subject:

Fnord wrote:

The only real inefficiencies are in the people who fail to become successful in a capitalistic economy.

Not really. People backstab. People don't teach others effectively. People cause others pain. Causes inefficiency.

In no way does your view show any depth.

Fnord
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Posted: Thu Feb 23, 2012 3:43 pm Post subject:

ProfumoAffair wrote:

Fnord wrote:

The only real inefficiencies are in the people who fail to become successful in a capitalistic economy.

Not really. People backstab. People don't teach others effectively. People cause others pain. Causes inefficiency.

You support my assertion in that you cite inefficient behaviors in people.

ProfumoAffair wrote:

In no way does your view show any depth.

You want depth? Earn a uni degree.

Burzum
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Posted: Thu Feb 23, 2012 4:10 pm Post subject:

peebo wrote:

one simple example is that of uk supermarkets throwing away something like 20 million tons of food every year. how would you explain that?

You mean food that has exceeded shelf life? There are laws in place for that. They will be punished if they don't toss the food.

Declension
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Posted: Thu Feb 23, 2012 4:12 pm Post subject:

Capitalism is inefficient at many tasks. The thing about capitalism is that it comes with its own religion, called libertarianism. This religion is based on the assumption that something is efficient if and only if capitalism does it. This view really is religious, in the sense that it redefines "efficient" to mean "done by capitalism", just like religious people redefine "good" to mean "from God". The truth is that there are certain aspects of life that are better for everyone (and I do mean literally everyone) when they are not run by capitalism. Healthcare and education are good examples.

AstroGeek
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Posted: Thu Feb 23, 2012 4:17 pm Post subject:

Declension wrote:

The truth is that there are certain aspects of life that are better for everyone (and I do mean literally everyone) when they are not run by capitalism. Healthcare and education are good examples.

Yes. Most of the Western world spends about half as much per capita per anum on health care and yet has longer life expectancies.

And although ruveyn is right, that capitalists produce what people will buy, the capitalist system also works to encourage us to buy more than we need and fails to constrain our materialism so that it is sustainable.

thedaywalker
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Posted: Thu Feb 23, 2012 5:24 pm Post subject:

ruveyn wrote:

peebo wrote:

one simple example is that of uk supermarkets throwing away something like 20 million tons of food every year. how would you explain that?

everyone pays for the tonnage that is tossed

ProfumoAffair
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Posted: Thu Feb 23, 2012 5:43 pm Post subject:

Fnord wrote:

ProfumoAffair wrote:

Fnord wrote:

The only real inefficiencies are in the people who fail to become successful in a capitalistic economy.

Not really. People backstab. People don't teach others effectively. People cause others pain. Causes inefficiency.

You support my assertion in that you cite inefficient behaviors in people.

Incorrect analysis. My examples show how strife causes people not to succeed, and how people cause the problem whilst still being successful themselves. It's a problem in all levels of society, inefficiency in capitalism, not the problem of all those at the bottom.

Fnord wrote:

ProfumoAffair wrote:

In no way does your view show any depth.

You want depth? Earn a uni degree.

You can't use that as an excuse to peddle a lowbrow belief.

Last edited by ProfumoAffair on Thu Feb 23, 2012 5:45 pm; edited 1 time in total