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View Diary: Harvard innovation guru: Pursuit of profit is killing the U.S. economy (199 comments)

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  •  Capitalism vs corporatism (14+ / 0-)

    I once heard a lecture and I wish I could remember who it was from.  But the whole lecture was on the difference between true capitalism and our modern system which I call corporatism.  While many like to pretend they are one and the same, the reality is that they aren't.  Corporatism is much more destructive and damaging to society the more it is allowed to grow because corporatism is incapable of saying "enough is enough."

    What was interesting about the lecture, though, is the idea that capitalism is all about risk vs reward.  That it takes money to make money.  People who take big risks by investing money into the system (people, research, innovations, etc) will see the greatest reward.  This combined with competition is what makes capitalism work.

    However, corporatism hates risk.  Corporatism hates anything that costs them money because it means less profits for shareholders.  So corporations lay off employees, outsource jobs, close factories and would much rather just buy out the people who do still innovate or come up with ideas than make them themselves.  This essentially results in movement toward monopolies.

    Corporations are so obsessed with their own narrow interests, they tear down the very soceity in order to get richer.  This is done by suppressing wages, and benefits and pensions and lobbying against social security and medicare in favour of private accounts/insurance.  The people get more and more poor and struggle to get by while the rich get richer and refuse to see any problems with their vampire-like business model.  They don't see the reality that if you feed off the public too much for too long - ie. are too greedy or make too much profit - you risk killing off the very society that got you rich in the first place.  It is parasitic.

    Corporations don't want to innovate any more than absolutely necessary because that costs money to do and there is often strong competition with little guarantee of benefits.  They would rather wait and keep selling people junk at a massive markup for as long as possible to keep profits increasing.  

    And the pursuit of infinite profits, which corporations seem to believe in, is only possible if they are charging more and more money while providing less and less to the customer.  

    It was a fantastic lecture and this article just reminded me of it.  

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