Smashing Capitalism
Somewhere in the Hamptons a high-roller is cursing his cleaning lady and shaking his fists at the lawn guys. The American poor, who are usually tactful enough to remain invisible to the multi-millionaire class, suddenly leaped onto the scene and started smashing the global financial system. Incredibly enough, this may be the first case in history in which the downtrodden manage to bring down an unfair economic system without going to the trouble of a revolution.
First they stopped paying their mortgages, a move in which they were joined by many financially stretched middle class folks, though the poor definitely led the way. All right, these were trick mortgages, many of them designed to be unaffordable within two years of signing the contract. There were "NINJA" loans, for example, awarded to people with "no income, no job or assets." Conservative columnist Niall Fergusen laments the low levels of "economic literacy" that allowed people to be exploited by sub-prime loans. Why didn't these low-income folks get lawyers to go over the fine print? And don't they have personal financial advisors anyway?
Then, in a diabolically clever move, the poor - a category which now roughly coincides with the working class -- stopped shopping. Both Wal-Mart and Home Depot announced disappointing second quarter performances, plunging the market into another Arctic-style meltdown. H. Lee Scott, CEO of the low-wage Wal-Mart empire, admitted with admirable sensitivity, that "it's no secret that many customers are running out of money at the end of the month."
I wish I could report that the current attack on capitalism represents a deliberate strategy on the part of the poor, that there have been secret meetings in break rooms and parking lots around the country, where cell leaders issued instructions like, "You, Vinny -- don't make any mortgage payment this month. And Caroline, forget that back-to-school shopping, OK?" But all the evidence suggests that the current crisis is something the high-rollers brought down on themselves.
When, for example, the largest private employer in America, which is Wal-Mart, starts experiencing a shortage of customers, it needs to take a long, hard look in the mirror. About a century ago, Henry Ford realized that his company would only prosper if his own workers earned enough to buy Fords. Wal-Mart, on the other hand, never seemed to figure out that its cruelly low wages would eventually curtail its own growth, even at the company's famously discounted prices.
The sad truth is that people earning Wal-Mart-level wages tend to favor the fashions available at the Salvation Army. Nor do they have much use for Wal-Mart's other departments, such as Electronics, Lawn and Garden, and Pharmacy.
It gets worse though. While with one hand the high-rollers, H. Lee Scott among them, squeezed the American worker's wages, the other hand was reaching out with the tempting offer of credit. In fact, easy credit became the American substitute for decent wages. Once you worked for your money, but now you were supposed to pay for it. Once you could count on earning enough to save for a home. Now you'll never earn that much, but, as the lenders were saying -- heh, heh -- do we have a mortgage for you!
Pay day loans, rent-to-buy furniture and exorbitant credit card interest rates for the poor were just the beginning. In its May 21st cover story on "The Poverty Business," BusinessWeek documented the stampede, in the just the last few years, to lend money to the people who could least afford to pay the interest: Buy your dream home! Refinance your house! Take on a car loan even if your credit rating sucks! Financiamos a Todos! Somehow, no one bothered to figure out where the poor were going to get the money to pay for all the money they were being offered.
Personally, I prefer my revolutions to be a little more pro-active. There should be marches and rallies, banners and sit-ins, possibly a nice color theme like red or orange. Certainly, there should be a vision of what you intend to replace the bad old system with -- European-style social democracy, Latin American-style socialism, or how about just American capitalism with some regulation thrown in?
Global capitalism will survive the current credit crisis; already, the government has rushed in to soothe the feverish markets. But in the long term, a system that depends on extracting every last cent from the poor cannot hope for a healthy prognosis. Who would have thought that foreclosures in Stockton and Cleveland would roil the markets of London and Shanghai? The poor have risen up and spoken; only it sounds less like a shout of protest than a low, strangled, cry of pain.
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Hahahaha! o what a tangled web we weave!
As for poor people being financially illiterate
Once upon a time, the ultimate business model was Generous Motors, with unions, benefits, pensions..
Could it be we have reached the limits of capitalism? I mean, gosh golly! the means of production are concentrated into so few hands....
To blame the poor is as silly as the one pointing out all the welfare programs. Something is very wrong here. By that token we all would have to be at least a millionaire or
otherwise we failed for not having achieved it.
Think about it. Most of the rich stepped on someone or many, they squeeze the employees, have them work more than 40 hours and demand
free work - look around, it is happening everywhere. And we are giving away safety just to make a buck. First, you have to pay the people in order for them to spend - it is the people who drive the economy. And retail has been in the hole since XMAS 2 years ago. Just look what the American economy rests on, trillions in personal debt. Now the curtain came off and we see how we were duped thinking
we are better off than anyone around the world.
In 1980 Americans, in their infinite wisdom, voted into Presidential Office a B grade out of work movie actor, who was backed by big and small business.
This unqualified failure began the journey of destruction which is so self evident in America today, and which is fundamentally responsible for the loss of America's position as a global leader in manufacturing, industry etc.
In order to serve his masters, he began deregulation and creating " privileges for the Office of the President in order to avoid the Rule of Law and Constitution. His criminal acts in Iran_Contragate were excused by the minions of business, as unintentional and indeed, unwitting.
Then, in 2000, the Nazi Plan vaulted into office Dumbo II, and the rest is now history.
The poor and the middle class got extremely poorer, the Rule of Law and Constitution obliterated, and the Rich White Folk got richer and more powerful.
Wal Mart et. al. are a part of the conscious effort to effect the above. what government would not intervene where a purchaser demands that in order for it to purchase from you, you must destroy jobs in the US ( here read " families") and create jobs in China?
When that red flag is at the front of the Column ponting militarilly at the US, I hope the wealth those Treasonists created for themselves will be of some use to them, because, believe me, when China makes its move, its target will be Global and there will be no opposition left.
Thank you Business.
This comment section has been great reading. I knew I was poor, but didn't understand how miserable I am. Maybe it's that 30 lb. wild Pacific salmon (my son and grandson caught) that we roasted on the barbe all week and ate with those fresh tomatoes and zucchini out of our garden and those red potaotoes from the farmers mkt down the road. Or the long mellow drive through the Washington Cascades..
We may be on to something here. The poor (working class) no longer pay the bills that they cannot pay, don't seek the medical care they cannot afford, maybe it's time to stop spending the money we do not have in a way that is having a huge impact worldwide. Strategic non-shopping at Walmarts might be the way to fuse the mortgage crisis and health care crisis into a class weapon to get to the ruling class in America?
The Walton family makes up five out of the wealthiest eleven Americans. They are the largest employer in the country. Their policies, off-shoring and NAFTA-like agreements are definitely economic warfare against American workers. Isn't it time to turn the tables on them? At the very least, we should pledge to stop buying all the defective Chinese crap that Walmart pushes.
A brilliant and satyrical poke at a "sad but true" situation largely caused by the evils of Wal-Mart and similar economic schemes. It amazes me that people cannot see the entire "cycle" and all its oppressions - outsourcing, slave labor, off shoring, no health care, poverty wages, using the taxpayer to subsidize a low wage service sector workforce, contaminated products from China, sprawl, and the sheer monotony of another "superstore" site no. 1004789343.
It is interesting she starting the article with this sentence:
"Somewhere in the Hamptons a high-roller is cursing his cleaning lady and shaking his fists at the lawn guys."
I thought she was going to explore the effects that "illegal aliens" are having on the current mortgage crisis. Why is no one discussing this? Who, besides an illegal, would need a no-document loan that doesn't require a SSN?
Oh well, is suppose, tourism has many faces, from cultural exploitation to visiting the hapless sweat shop workers, as we toil..away ever hopeful, that some day we'll win the lottery...
we're aware that working will never make us rich...as the band The Softmachine once say..."hop
The elite who like to let us think we're free have an answer to all of this, it was called bankrupcy reform, and credit card reform, how coincidental that they got it through just before...j
lets see, people forfeit all the equity, sometimes quite sizeable, in their houses when they stop paying the mortgage, and fully sabotage their future credit rating (which can seriously jeopardize your ability to get a good job). next the bank sells the house at pure profit. can someone explain to me, how is this a defiance by the poor??
I guess if you urinate on $100bills before you hand them all over to a con man, you've made a kind of statement too.
citizens pay a sickeningly, almost deadly high price for ignorance
of basic economics and "money mechanics". but dont feel too bad, the system
is designed to reinforce it. its not a bug, its a feature.
its such a shame that citizens require
a burning fire before they think about
getting beyond their ignorance.
but, yay! free enlightenment is just a
click away.
see a paper I wrote called "fractional reserve banking as economic
parasitism"
endorsed by two phd economists. printed in nexus
magazine, 60k world circulation. #1 top downloaded
economics paper. used by economics
teacher in australia as standard classroom material.
more info on request.
"fractional reserve banking as economic parasitism"
http://eco
recent supporting material: "confessions of an economic hit man"
http://www
Yes, they are like ticks on the host, the working people. They don't have the good sense to drop off when full though, like a tick will.
splashy
Great analogy!
.
our brand of capitalism will self destruct just like communism did.
americans cheered when communism failed not realizing theirs was next to fail.
pure capitalism goes against too many universal laws just as communism did.
but it will take time first the middle class has to all but disappear and then the economic system will falter and then well you get the picture.
the problem is not the capitalists they are just doing what capitalists do. the problem is the ignorant american populance that associates socialism with communism.
Why wouldn't the American populace associate socialism with communism? Even Marxist scholars disagree about the similarities and differences.
.
Business is very, very simple. You want your workers to do a good job, you pay them good wages. That makes them happy. Then they work harder for you. Give them job security, that makes them happy too. And if they don't appreciate the job, you can always fire them and hire someone else. Wow, what a concept. Good jobs, good wages, people spend, good economy. Why is that so hard for big business to accept?
I know my post was a bit condescending, but it's aimed at Republican businessmen, who are not too bright.
First Act = S&L Bailout
Second Act = Dot.com Bubble Pop
Third Act = Enron Era
Fourth Act = SubPrime Meltdown
Greed, Deception, Corruption and Exploitation.
"Certainly, there should be a vision of what you intend to replace the bad old system with -- European-style social democracy, Latin American-style socialism, or how about just American capitalism with some regulation thrown in?"
How about none of the above? Global socialism, now more than ever! Don't let anyone tell you that replacing extreme capitalism with semi-extreme capitalism will have to do!
What is wrong with giving people an opportunity to own their own home. It makes them better citizens.
That said, what is wrong with making people pay their debts. Encouraging the non-payment of debts will only encourage lenders to not lend in the future without attaching onerous terms that will reduce the number of people that can get a loan.
"That said, what is wrong with making people pay their debts. Encouraging the non-payment of debts will only encourage lenders to not lend in the future without attaching onerous terms that will reduce the number of people that can get a loan."
It hasn't been a bad business model for rent-to-own centers and pay day loan shops.
Karl Marx put it very well when he said:
1. The oppressed are allowed once every few years to decide which particular representatives of the oppressing class are to represent and repress them.
2. The rich will do anything for the poor but get off their backs.
3. Capital is reckless of the health or length of life of the laborer, unless under compulsion from society.
4. Capitalism is the process, controlled by society's greedy, to keep the working class so tired from constantly striving to provide for their families that they have no time or energy to notice that they are being f*cked royally.
And we can hope, that for the owning class, "All that is solid melts into air."
So true.
The rich are as ticks on a dog to the working class, but they think that because they are above on our backs that they are better than we are. They suck the life out, and don't seem to realize that if they suck too much, the host dies and so will they.
We need a tick killer and repellent.
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