We can assume that capitalism didn’t fail before it was created so we have the first tragedy of capitalism in the late 1920’s leading to the Second World War a decade later. Capitalism was rescued by that war and later fake news militarism in the US and welfarism in the UK provided the economic stimulus that let “neoclassical” economics reboot capitalism and then presides over a slow relentless decline until western capitalisms death in the mid 1980’s. The Second World War war was the tragedy….and today post the 1980’s we have the farce. How so?
Well, capitalism has failed again. If you don’t believe us just consider what capitalism needs to justify its name. It needs capital and that capital has to be the misappropriated value taken from the workers who created it by, you guessed it Capitalists. What we have now is the ridiculous spectacle of the rich simply and like Sir Phillip Green lazily tapping off the proceeds of workers and taxpayer debt, acquired in the form of profit for rubbish mostly manufactured at low cost in China. This is not capitalism…this is the free market. The free market is the “farce” in Marx’s quote above.
So when capitalism is exhausted to the point of extinction in the Western world and the “state” has given up trying to tap off economic value from capitalist because they no longer exist (rich people are not the same as capitalists whatever Britain’s Labour Party think) we are all encouraged to turn to the smoke and mirrors, the Alice in wonderland alchemy of debt. Debtamorphosis is what we call it. No one really understands how this debt based system drives odd behaviours and creates values that are unfair to the poor. Debt also promotes lifestyles that, whilst not exactly immoral are hardly mainstream. Welcome to the Marxian 21st-century farce.
We will consider this later but it is not pretty. Handbagging between the west and Russia, “fake news”, proxy wars between adolescent nations that are still to grow up and a western world that is narcissistic, obsessed with itself and yet self-loathing enough like some neurotic bingeing on debt before throwing up at each and every economic convulsion since 1945.
The free market needs to create only one side of the economic binary of demand and supply, and unlike in the old days when supply created it’s own demand via wages and profits now the system needs only to have demand. But with the link to production, working and wages severed the demand has to come from somewhere and it comes from debt. That is the dirty secret that a few “oddballs” talk about on programmes like Russia Today but their smugnesses the western mainstream media ignore.
But a debt based economy has many flaws. Firstly it is unsustainable as the debt can never be paid off as it simply goes into immediate consumption. That is why the screeching socialist of Corbyn’s Momentum have no idea what they are talking about. Debt based “anti-austerity” without a corresponding productive investment is simply wasted on the here and now. And the biggest waster of debt would be the left wing’s sanctified socialist state.
The next problem with debt is planetary. Whilst we grumble and Corbyn’s Momentum screech about “austerity” the poorer parts of the world look on in horror as valueless debt based wealth gobbles up the planet’s resources to meet the shallow needs of the western worlds entitled consumers. The world is being destroyed not simply be consumption….but by its progenitor, debt.
Debt is as we all know tomorrows consumption today. So it affects the young who have to pay off the debt and in doing so maintain their own consumption paid for by more debt. The additional burden the Wests young have though is with their already indebted governments. These governments help to indebt the young with student loans and higher house prices (a direct result of the cash-raising against their asset price inflated property of the baby boomers). It could not be worse for the young. The solution, build more houses, invite in more migrant workers to ensure demand and borrow more money which is the left wing answer simply makes matters worse. Worse because new houses will simply become an asset against which working people can borrow more cash. Without that debt however the economy will quickly contract. Real as opposed to a pretend austerity.
So within all this, the beneficiaries of the debt based economy, essentially the wealthy public servants and the financial elite know that at some point ordinary people will not simply be mentally pauperised by stupidity they will be financially pauperised by debt. They the elite, however, will jet off to join the other world elites who using more traditional forms of exploitation (like pumping oil out of the ground and keeping the sales receipts) have carved out places of pleasure in more agreeable parts of the globe like Dubai.
This final point explains the “Big Ticket” consequences of our 21st-century farce. World tensions and fake news. The world has too much debt to go to war. No one could prosecute a serious conflict for more than about a week. And with nuclear weapons and so much synergy between most modern nations who would want to go to war anyway. So we have conflict zones where a scaled-down battle rages between those who can see the West’s debt-based economic model for what it is an Alice in Wonderland alchemy, for example, The Russian Federation, ISIS, North Korea, and Iran and those who think the model creates a haven for liberty but who simply fail to understand how it really doesn’t do that at all.
In addition to the proxy wars, we have the farce of fake news. Fake news has been a staple of the western world for years. Who the hell knew what was really going on in the 1950’s to 1990’s. However only now is news being used to “call out” the Western hegemony for the debt-fuelled nonsense it really is. And the western powers don’t like it. Fake news in the new farcical “cold war”
The sad truth is that western politicians are too stupid to understand how they are being played by a system that is enslaving their voters with debt. They fail to see that fake news is simply a critique of the west by nations who are more traditional about how they exploit their people. There are the seeds of revolution within all this but at the moment most people would prefer to stick with debt. The economics of the West both left and right wing is such a farce you couldn’t make it up.