Personal tools

Argument: Capitalism Has Shown Itself to be Highly Inefficient

From Debatepedia

Jump to: navigation, search

Parent Debate

Extended Argument

For example, by 1995, after neo-liberal deregulation which brought a purer capitalism than the social democratic era that preceded it, 95% of financial transactions were speculative and only 5% were related to the real economy. That means that only 5% of transactions actually involve production and trade of goods and services and bring tangible improvements to real people and only 5% of transactions affect the real economy of people and their lives. On the other hand, 95% of economic transactions in capitalism just go into setting prices and bringing profits to the capitalist class, or in some cases the upper middle class, generally at the expense of the working or peasant classes since they are excluded from financial speculation, the speculative transactions waste time that could be spent working on production and consumption whic affect them, and the profits made through speculation are coming from their wages - which goes part of the way to explaining the decline in wages during the neo-liberal period of capitalism. In other words, 95% of transactions in capitalism are wasteful in real terms and 19 times more time is spent on setting prices and bring profits to rich people than time spent on trade between producers and consumers in a way that brings goods and services to people and thus builds up the economy. That figure is the generally accepted figure but the source used here is Profit Over People: Neoliberalism And The Global Order by Noam Chomsky.

Problem with the site? 

Tweet a bug on bugtwits