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View Diary: Anti-Capitalist Meetup: An Immodest Proposal (54 comments)

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  •  In fact there is evidence to the contrary just (2+ / 0-)
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    The Geogre, JayRaye

    on the provision of services and accessing them. What is happening here is that the price of electricity, heating, water and transport (that are privatised) are eating into incomes that have been falling for 20 years. I read earlier this week, that over 60% of the population wants these nationalised. Needless to say no party is advocating renationalisation irrespective of the demand of the public. To add insult to injury they have started privatisation of the post office even though it is profitable and hence contributes to gov't revenue and irrespective of the majority of the population opposing privatisation.

    The most ridiculous thing is the public-private partnership where the gov't essentially covers long-term investment and the profits are reaped by the private sector. Once profitability enters the equation, inevitably service provision declines both in terms of everyone being able to access these services (due to insufficient income) and the fact that the private sector simply refuses to do repairs needed to ensure provision.

    In terms of Smith, in terms of both the gross and net product, he argued that demand determines supply in terms of both the quantity and composition of output. It was later arguments that accepted Say's Law that insisted that supply determines demand ... whatever will be produced will be consumed. In later economic arguments (Neoclassical) this specifically relates to the capital market and saving (supply) and investment (demand) for capital. A more coherent discussion on demand determination relates to expected effective demand, but that is never precise (neither was Smith's argument) and that time lag is what leads to both short-term over-production or underconsumption. For post-Keynesians, this is a long-term problem as the theory of effective demand returns to a long-term issue where demand (and expected demand) is what essentially enables economic growth in the capitalist system as opposed to the babble of Say's Law.

    "Hegel noticed somewhere that all great world history facts and people so to speak twice occur. He forgot to add: the one time as tragedy, the other time as farce" Karl Marx, The Eighteenth Brumaire of Louis Bonaparte .

    by NY brit expat on Sun Sep 15, 2013 at 07:05:42 PM PDT

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    •  In Sweden as well (2+ / 0-)
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      JayRaye, NY brit expat

      The public builds the sewers, the electric system, the libraries, the roads, etc., and then a conservative government says that the #1 problem is taxation and decides to sell something. "Hey, why not sell the power company? The American power companies are more efficient than ours." So, 100 million pounds (total investment by the public, adjusted for inflation, somewhere in the billions or trillions) go into the "profit" side for the government, which is running "like a business." Then, though, the national electric starts to act like a private electric: maximizing profit per unit.

      In Sweden, it's hospitals. The public is trembling in fear as each one gets sold. Even in America there are things left to sell, and cities sell off their water pipes.

      The time lag in capitalist (or Keynesian) response is the critical problem. In capitalism, market hoarding creates a famine, and then market flooding feeds, but first, hundreds of thousands starve. In governmental "excess," expected demand can be slowed by inefficiencies, and sometimes idiotic political parasitism (the Soviet), but the base will complain a whole lot more quickly than the capitalist will notice.

      To me, it's all back to the original sin of substituting aggregated market capital for individual markets. Then again, I may get to be a pre-industrialist Luddite (but not a William Morris type).

      Everyone's innocent of some crime.

      by The Geogre on Mon Sep 16, 2013 at 03:54:45 AM PDT

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