"Capitalism has Failed"

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"The investments of businesses are ridiculously low, as low as after the Second World War. The reason for this may be the immense indebtedness of private households. The only thing that blossomed in the US in the last years was Wall Street - that is now killing itself.

The financial markets are many times greater than the real economy needs for its investments and its commerce. The volumes are so inflated that they must be scaled back, at least a third and probably two-thirds. Many bankers and brokers will not have anything to do any more...

The classical shareholder does not exist any more today; there are only share-turners. Most are professional investors that are not interested in the business.."

Fredmund Malik is different from the mass of consultants. He has absolutely nothing in common with American management theory. He sharply criticizes the idea of shareholder value, business management oriented onesidedly in the interests of shareholders. He sees there one cause for the worldwide financial crisis. He also regards the conventional training of managers in MBA schools as wrong.

to read the interview with Fredmund Malik "Capitalism has Failed" published on 7/13/2010, click on

http://dc.indymedia.org/newswire/display/149882/index.php

demandside's picture
demandside
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Jul. 31, 2007 3:01 pm

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Malik's correct. Of course capitalism's failed as it is wholly concerned with creating profit and our version requires no obligation to society and is disconnected from real production. Selfishness without altruism results in psychopathy, which is precisely what has happened, essentially due to its Calvinist and objectivist roots, and if not corrected will result in a failed U.S. Either a business person is a full member of society, with its attendant obligations, or he or she is a parasite.

The stock market is a great example of the problem of capitalist thought in that it is totally disconnected from true value derived from actual performance of the business and totally reliant on the perception of stock price and it's potential for movement. Much business is conducted not with the customer in mind, or social implications, but with how speculators will react thus affecting stock price thus affecting compensation. The stock market as we know it, and as it operated during the roaring 20s, is a result of wealth not being satisfied with returns from real production, it thus moves to speculation, in which management does whatever necessary to satisfy the stock market including sending American jobs to low wage labor markets and wasting finite resources and degrading the environment, all with the costs to be borne by society at large.

Another problem is that our capitalism is unsustainable, not just from an environmental point of view, but also from the consumer point of view. In order for our capitalism to operate the consumer must buy what they can't afford, thus necessitating credit; It cannot operate if consumers buy what they can afford.

jeffbiss's picture
jeffbiss
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Jul. 31, 2007 3:01 pm

We has all seen first hand capitalism can not exist without slave labor.

The rich need us to pay taxes to house and feed, educate, and provide medical, dental, and social security to their 20 million illegal laborers to grind our wages down.

this is the most evil nation, evil system in the world. The Soviets never did this to their people.

Iron_Panda's picture
Iron_Panda
Joined:
Sep. 7, 2010 3:17 am
We has all seen first hand capitalism can not exist without slave labor.

Well, it can and does. There are as many capitalisms as their are theorists.

The rich need us to pay taxes to house and feed, educate, and provide medical, dental, and social security to their 20 million illegal laborers to grind our wages down.

I'll buy that.

this is the most evil nation, evil system in the world. The Soviets never did this to their people.

That's definitely not correct. The U.S. has its flaws but overall the rule of law protects people where other nations' leaders, such as in North Korea or Iran, can do whatever they want. Also, the U.S. pales in comparison with what the Soviets under Stalin did to those under Soviet control. While slavery and the indian solution were abjectly brutal, by simple number Stalin far surpassed us. Then there was the Cultural Revolution in China that had no parallel in the West. Never say "never".

jeffbiss's picture
jeffbiss
Joined:
Jul. 31, 2007 3:01 pm

Iron Panda: The Soviets never did this to their people. - You are absolutely right!! Stalin merely had them sent to Siberia to work/starve to death or had them outright killed, maybe that is the program you would prefer, aye comrade? Those who do not know history are doomed to repeat it.

tmoney13's picture
tmoney13
Joined:
May. 1, 2010 1:20 pm

The Soviets were way more than pretty bad. What state doesn't evolve into that sort of thing when an elite has no controls on it?

The Corporate State will probably evolve into the same thing as its structures begin collapsing with an accelerating speed....courtesy of the Patriot Act. that provides the "legal" (though unconstitutional) framework for it.

http://www.ustream.tv/recorded/9217110#utm_campaigne=synclickback&source=http://www.truthdig.com/avbooth/item/chris_hedges_on_moral_courage_20100901/&medium=9217110

Retired Monk - "Ideology is a disease"

polycarp2
Joined:
Jul. 31, 2007 3:01 pm

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The world we're leaving for today's teens...

Without immediate global action on climate change, today's teenagers will be forced to live with the consequences of our inaction. The World Bank has issued their third report of climate change, and it says that global temperatures could rise by as much as 4 degrees Celsius by the time today's teens hit their 80th birthday.

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