A Critique of Market Capitalism and a Promotion of State Capitalism

By N from Charlemagnes_Corner

Introduction: A diagnosis

The Capitalist mind is truly a perverse mind in that it is a mind consumed by one’s own advancement without worry of the future. It is a mind so obsessed by the present that it is ignorant of the ramifications of the aforementioned advancement. It is a fixated mind.

I say this in reference NOT for the average citizen who partakesin a private transaction, as it is safe to say that that is all of us. But Isay this about the business owner who ships his job overseas and expects to betreated as if he were a domestic corporation when in reality he is logisticallya foreign entity.

One could argue that the system works by virtue of it still being in place and by stating that our GDP has consistently grown under it. The thing is, one could argue that, but one should not. As it is true that the GDP of the United States (my country) has grown consistently since 1960[1], (except for 2008 where there was a dip) but how is GDP reflective of the quality of life within the nation? Sure, American paychecks are technically bigger than 50 years ago, but purchasing power has not budged an inch. In fact, despite some ups and downs over the past several decades, today’s real average wage (that is, the wage after accounting for inflation) has about the same purchasing power it did 40 years ago. And what wage gains there have been have mostly flowed to the highest-paid tier of workers.[2]

Our system of government allows for the concentration of wealth.Look at Jeff Bezos who, by manipulating US social services, has gotten awaywith paying his workers a dirt wage, not paying federal income taxes, getting a$137 million dollar tax refund[3] (even though Amazon getsaway with not paying federal income taxes) and having the taxpayer PAY for thosesame workers’ welfare. This is perfectly legal and sanctioned by our systemwhich has, for some time, been too intertwined with the private sector.

Let us understand the premise that economics is not a system of governance, that was the failure of most socialist systems, economics is a tool. Capitalism is only as good as the government who utilizes it. So is socialism to a certain extent. Private ownership is not an inherent good thing nor is the concentration of wealth within the context of the advancement/preservation of the nation.

Within pure capitalism advancement of the individual takes center stage while advancement of the nation is pushed to the side. It is this very notion that makes me critique capitalism because when the nation is abused that is when the disease of bolshevism can rear its head within a people. Remember the working class comprises the bedrock of any people and if these people are abused they will rise up as can be seen in any revolution.      

This series of essays hopes to explore my economic philosophy. It is a philosophy which seeks not to enrich any particular class  in an unfair way, but to preserve those classes and providing regulation so that order can exist within the socioeconomic fabric of the nation-state.     

Domestic Capitalism And International Capitalism            

Capitalism IS NOT EVIL. It is the only economic model that (in theory) demands consent, I acknowledge this. However, like anything taken to an extreme or perverted it can become a bane to a nation as opposed to a boon.

Let’s understand two realms of capitalism. Domestic and international. Domestic capitalism is private business within the borders of the country.
International capitalism involves multiple nations and the outsourcing of jobs with trade deals and what not

Domestic capitalism has a few problems, for example Bezos and the workers’ shitty pay or the absorption of small businesses by bigger businesses. Wal-Mart comes to mind. The crony capitalism is the issue with domestic capitalism at the core of it all.
The truly problematic form of capitalism is international capitalism.

International capitalism comes about from the aforementioned crony capitalism. Once a private entity realizes that it has the economic strength to construct a factory overseas that is when we get international capitalism. The motivations to move overseas are numerous but the most important reason. Is cheap labor.

You see western workers have self respect, we do not see ourselves as dirt.  However this mindset is not present in some peoples. Some people exist in a state of absolute poverty and are so poor they will work for a dollar. This is not the fault of any particular system from my view, no one is to blame but the leaders of these peoples. It’s sad, but it’s the reality of it.

So long as those people exist, a private corporation will always be incentivized to move theirproduction over to countries that harbor those people and no worker protection.Thus depriving the civilized nation of jobs.

Let me be clear, workerslike citizens are entitled to rights and to deprive them of this is medievaland barbaric. That is why I say civilized nations are the victims here for onlyan uncivilized civilization treats its workers like dirt.

The story of Wal-Mart is one that highlights the problems of domestic capitalism transferred to the international stage.
Wal-Mart was founded by Sam Walton in the 60s, when Walton bought a store in Brentville, Arkansas and then eventually expanded to every state in the south.[4] When it began to expand it would expand in a way that absorbed the competition in the areas of service.

In 1996, Wal-Mart opened its first store in China and officially played its hand at globalism. As of 2017, according to Wal-Mart’s corporate figures, the company employs 2.2 million people.[5] Those American workers, whom Wal-Mart employs, complain constantly about low wages.[6] In fact Wal-Mart has been in trouble several times for illegally disciplining workers who went on strike.[7]

Now Wal-Mart is not a hard job to work at. But there is a problem when their workers in cheap overseas countries are reportedly paid $0.14 an hour and the domestic workers are paid a starving wage which mandates taxpayers to pay for welfare to those underpaid workers. Wal-Mart workers cost $6.2 billion to the American taxpayers.[8]

I do not believe in raising the minimum wage federally, as it messes up the whole system, but I also cannot tolerate a company which can afford to pay their American workers more but doesn’t and instead foots the bill to the American tax payer. Then runs around and opens a factory in China or India or BOTH. This phenomena of outsourcing is always bound to happen by virtue of the fact that capitalism is founded on competition and a zero-sum mentality. The way in which to limit or restrict this inevitability is with the government. The right wing must understand that the state needs you, you are a member of the nation. The nation requires a state to preserve it, and the state needs the nation to legitimize it. The state can love you, if you demand love. The state has the moral and logistic responsibility to prevent any entity, domestic or foreign, from abusing you. I will discuss more about the union between capitalism and state soon

Within the context of the USA, our state has accepted the premise that the USA does not have a nation in the traditional sense. They do not care for the future of its people

The mistreatment of workers will almost always result in a surge in socialist support and such a thing can turn the USA into Venezuela or something similar.

State Capitalism And Public Mandate

Capitalism will almost always result in the movement of investment to overseas labor for cost reduction. In the US, capitalism coincides with governmental corruption because as I stated in the first post the US government is too intertwined with the private sector. For example, take the signing of the John S. McCain National Defense Authorization Act For the Fiscal Year of 2019 (H.R. 5515). The bill complies with the bipartisan budget agreement and authorizes $639.1 billion in base funding. Further, the bill authorizes an additional $69 billion in the Overseas Contingency Operations (OCO) fund to cover contingency operations. When factoring in $8.9 billion for mandatory defense spending, a total of $717 billion is authorized to be appropriated.[9]

Capitalism will almost always result in the movement of investment to overseas labor for cost reduction. In the US, capitalism coincides with governmental corruption because as I stated in the first post the US government is too intertwined with the private sector. For example, take the signing of the John S. McCain National Defense Authorization Act For the Fiscal Year of 2019 (H.R. 5515). The bill complies with the bipartisan budget agreement and authorizes $639.1 billion in base funding. Further, the bill authorizes an additional $69 billion in the Overseas Contingency Operations (OCO) fund to cover contingency operations. When factoring in $8.9 billion for mandatory defense spending, a total of $717 billion is authorized to be appropriated.

http://www.govtrack.us June 5th 2018

Congressman Thornberry introduced the legislation and he is also the Congressman who takes the most contributions from the Defense Industry, these contributions amount to $330,750.[10] So is it any surprise that he introduced one of the most expensive pieces of legislation for the Department of Defense in the Nation’s history. This anecdote is to illustrate the situation in the United States of America. When you have a government like this, that is so caught up in its preservation, it becomes easy for capitalism to run amok by manipulating elected officials.  

With all these issues in place why not implement a dictatorship of the proletariat? Because that’s stupid. Communism is for idiots full stop.

Communist philosophy seeks to divide the working class from the capitalist class. Capitalism as we know it, in effect divides the working class and the capitalist class.

As a result the workers grow restless and will begin to exercise their strength in numbers and begin to vote for far-left policies as they see no other recourse. One can hardly blame them.

So with that being said, any third positionist must advocate for a economic model which does not divide the classes and instead unites them to work in conjunction. The manufacturer is nothing without the inventor and the inventor is nothing without the manufacturers.
I believe in a capitalist model which exists solely to serve the nation-state. All within and nothing without.

All corporations and private businesses are under governmental oversight. If a corporation wishes to construct a factory overseas, a representative of the company must make his case before a government committee and a representative of the company’s workers must be present in that meeting. A negotiation must then ensue which sees how the company shall repay its workers should it move overseas.

I do not believe in acarpet minimum wage raise, however, I accept the premise that our minimum wageis not a living wage. As it should be, HOWEVER, a corporation which can affordit, must raise the wages of its adult workers to a standard which allows aprosperous life. If the private business chooses not to do this, I do notbelieve we should force them, we ought to coerce them. Raise taxes on thecorporations and their CEOs. Sanction the company’s foreign imports as if theywere a foreign entity. After all if you do not do that then the rest of thenation shall be paying for the welfare of the poorly treated workers. Why notjust raise taxes and have the corporations pay for them through that and theneventually cave in and raise wages. Such a maneuver would come with a rollbackof food stamps for the uplifted workers of course.

If these corporations thendo the logical thing of implementing automation, then they will be taxed forsuch a choice. An automation tax which will be levied on any business that usesautomation, the degree of the tax will be dependent upon the degree ofautomation present in the business.

If this does not work,or the corporations continue to rebel, then the establishment of a publiccompany can be established to compete with the private entities. These companieswill be subsidized with the taxes of the private entities, a cut in militaryspending if needed. These state run companies will only exist so long as theprivate sector continues to fail, it’s exit strategy, should the private sectorcorrect itself, will be to sell the public company to a private individualwhich will then be treated like a regular private entity.

Whether you, the reader, agree or disagree, one thing that is irrefutable is that our system is broken. Wages are stagnant. Jobs are going away and some will soon cease to exist as a result of automation.


[1] “United States Of America GDP” data.worldbank.org

[2] “For most US workers, real wages have barely budged in decades.” Drew Silver, August 7th 2018

[3] “Bernie Sanders says Amazon paid no federal income tax in 2017. He’s right.” Manuela Tobias, May 3rd 2018

[4] Vance H. Trimble, Sam Walton: The Inside Story of America’s Richest Man, pp.46-64 (Dutton, 1990)

[5] corporate.walmart.com

[6] “Walmart Employs 1% Of America. Should It Be Forced To Pay Its Employees More?” Henry Blodget  Sep. 20th 2010

[7] “Union Blues at Walmart” The Nation. Dicker, John June 20, 2002

[8] Report: “Walmart Workers Cost Taxpayers $6.2 Billion In Public Assistance” Clare O’Conner Apr 15,2014

[9] http://www.govtrack.us June 5th 2018

[10] http://www.opensecrets.org

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