Originally posted by Bob Armstrong
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Differentiating Democratic Marxist and Capitalist Economies
Democratic Marxism Discussion Paper # 5
Note: cyclically re-posted for the benefit of new DMGI members, DM-G viewers, and DMGF members/viewers.
Fundamental Difference Between the DM Economy & the Capitalist Economy
When profit is the goal, as in capitalism, the point is not to produce for the demand. The point is to create the demand by marketing, so as to be able to maximize production and thus lower costs. This adheres to the principle of volume efficiency – once you have invested the capital to produce one widget, the cost of infinite production of widgets is actually a very small amount more; and the more widgets produced, the cost per widget decreases. The next goal is, at the same time, to try to keep the selling price of a widget high – allegedly to cover the cost of a widget being produced and some profit. Thus the producer ends up making even more money for each additional widget made and sold. This is a deliriously wonderful outcome for capitalism; ever-increasing profit per widget – The Ponzi Scheme realized.
It does not matter that a widget is not needed at all; the issue is solely “marketing”: “Don't fall behind your neighbour in quality of life; you must have a widget too!”
In opposition to this, Democratic Marxism's economy is based on “sustainability” and “meeting actual needs first”. Only produce what is needed in the volume needed. And if planned obsolescence (As in capitalism) is eliminated, then whent the demand is filled, production ratchets back, and goes into a new initial low-volume replacement mode. Workers then shift out of this employment to other jobs, if necessary, with re-training if necessary. The increased cost of replacement widgets must become subsidized by the general economy (We cannot totally do without widgets – so if one breaks down, it will have to be replaced).
The Consequence of the Sustainable Economy
The first major consequence is that employment has to drop; jobs are well below the potential pool of labourers available.
So there are created three classes: the paid employed; the unpaid employed (those on UBI who decide to labour at something beneficial to society for free); the non-contributing in terms of societal contribution (Living private little lives).
The employed will enjoy higher income than the non-employed.....the upper class will not wither away. So the sustainable economy requires a very steep progressive income and wealth tax to generate tax revenues for government for society to provide a Universal Basic Income Livable Benefit (Also, low employment will lead to shrunken tax revenue). The tax grid, however, must not be so steep that non-paid working is seen as more beneficial than working. Of course, there will be some status benefit, likely, in being a paid-worker. Also, for those capable of marrying their passion to their career, there will be a most attractive general quality of life (And likely substantial benefit to society for them being paid workers. There likely will have to be a consumption tax of some kind as well to generate enough government revenue.
The Non-Paid Working Class
The government will provide a Universal Basic Income Livable Benefit to all. The tax system will recoup the benefit, or much of it, from higher income citizens. Or, perhaps, receipt of the benefit may be optional.
The State-Supported Class will subdivide into two: the non-paid working class (will use their time, effort and money to provide free, contributions to society); those who simply wish to live a private, little, enjoyable life, and not work. It will be true that competition will be fierce for any paid-worker positions.......despite the naysayers who believe all will suddenly be satisfied with a life of drinking beer.
Monthly budgets will be lower due to the free products/services provided by the non-paid workers. There will be no charging for unpaid worker labour – all paid employment will have to be registered and government approved. This, of course, will lead to an underground economy, but this exists in any regulated system.
Quality of Life
Quality of life will be in each individual's hands......they will be able to determine their own destiny with many less obstacles than in current day capitalism (Even social democracy). They will determine the level of satisfaction with life they want (Within the bounds of all being taken care of – no more billionaires......those that want that will just fail to reach their self-interested goal). For those who desire a somewhat higher quality of life than the rest, they will have to decide whether to enter the competitive race for employment.
For the non-paid workers, life will be “livable” - a step way up from the quality of life of many, in both the under-developed, and developed, societies.
Democratic Marxist Global Institute (DMGI)
Original – 20/8/4; Recent Revision – 20/10/17
Author: Bob Armstrong, Coordinator
Recent Reviser: Bob Armstrong
Most Recent Postings:
24/2/2: CT.DM; DMPO; DM-G; DMGF; TRN
Fb Page: Democratic Marxism – Global
(https://www.facebook.com/profile.php?id=100064839518717)
Fb Group: Democratic Marxist Global Forum
https://www.facebook.com/groups/2045...ref=nf&__xts__[0]=68.ARB5MaP7fzlN9ItgmSkMWzv60Rd9mIxsQIkIgIa6_Guh2MGR6mV82GdH-IxgmiiVaJcZ-NLi7Cz46VX0nn78clmPjd-pttzlYPR9dmEubTBnBdnGohd0bl3Fy4k02cb3BVHNVOcfjANvEEUCRw6k1IZDDsZV6l9V1Id5_NomySGWmEpA3Inygttyrt3-jYH1m1M50W3d94tVElUVaZ-SrM-WZ4BkYEj0ZYF5Y5X2d7KRG_MQJtND8fXyDSkU0F1I4FVHkI_eoiyOazUgCRS0lmfetiENOGsaJPb6MfuHzQ92-u7gMI_E8888fus
E-mail:
demmarxglobalin@gmail.com
Snail Mail:
DMGI
P.O. Box 3246,
Meaford, Ontario, Canada
N4L 1A5
Website:
In development
Copyright – Democratic Marxist Global Institute - 2020
Democratic Marxism Discussion Paper # 5
Note: cyclically re-posted for the benefit of new DMGI members, DM-G viewers, and DMGF members/viewers.
Fundamental Difference Between the DM Economy & the Capitalist Economy
When profit is the goal, as in capitalism, the point is not to produce for the demand. The point is to create the demand by marketing, so as to be able to maximize production and thus lower costs. This adheres to the principle of volume efficiency – once you have invested the capital to produce one widget, the cost of infinite production of widgets is actually a very small amount more; and the more widgets produced, the cost per widget decreases. The next goal is, at the same time, to try to keep the selling price of a widget high – allegedly to cover the cost of a widget being produced and some profit. Thus the producer ends up making even more money for each additional widget made and sold. This is a deliriously wonderful outcome for capitalism; ever-increasing profit per widget – The Ponzi Scheme realized.
It does not matter that a widget is not needed at all; the issue is solely “marketing”: “Don't fall behind your neighbour in quality of life; you must have a widget too!”
In opposition to this, Democratic Marxism's economy is based on “sustainability” and “meeting actual needs first”. Only produce what is needed in the volume needed. And if planned obsolescence (As in capitalism) is eliminated, then whent the demand is filled, production ratchets back, and goes into a new initial low-volume replacement mode. Workers then shift out of this employment to other jobs, if necessary, with re-training if necessary. The increased cost of replacement widgets must become subsidized by the general economy (We cannot totally do without widgets – so if one breaks down, it will have to be replaced).
The Consequence of the Sustainable Economy
The first major consequence is that employment has to drop; jobs are well below the potential pool of labourers available.
So there are created three classes: the paid employed; the unpaid employed (those on UBI who decide to labour at something beneficial to society for free); the non-contributing in terms of societal contribution (Living private little lives).
The employed will enjoy higher income than the non-employed.....the upper class will not wither away. So the sustainable economy requires a very steep progressive income and wealth tax to generate tax revenues for government for society to provide a Universal Basic Income Livable Benefit (Also, low employment will lead to shrunken tax revenue). The tax grid, however, must not be so steep that non-paid working is seen as more beneficial than working. Of course, there will be some status benefit, likely, in being a paid-worker. Also, for those capable of marrying their passion to their career, there will be a most attractive general quality of life (And likely substantial benefit to society for them being paid workers. There likely will have to be a consumption tax of some kind as well to generate enough government revenue.
The Non-Paid Working Class
The government will provide a Universal Basic Income Livable Benefit to all. The tax system will recoup the benefit, or much of it, from higher income citizens. Or, perhaps, receipt of the benefit may be optional.
The State-Supported Class will subdivide into two: the non-paid working class (will use their time, effort and money to provide free, contributions to society); those who simply wish to live a private, little, enjoyable life, and not work. It will be true that competition will be fierce for any paid-worker positions.......despite the naysayers who believe all will suddenly be satisfied with a life of drinking beer.
Monthly budgets will be lower due to the free products/services provided by the non-paid workers. There will be no charging for unpaid worker labour – all paid employment will have to be registered and government approved. This, of course, will lead to an underground economy, but this exists in any regulated system.
Quality of Life
Quality of life will be in each individual's hands......they will be able to determine their own destiny with many less obstacles than in current day capitalism (Even social democracy). They will determine the level of satisfaction with life they want (Within the bounds of all being taken care of – no more billionaires......those that want that will just fail to reach their self-interested goal). For those who desire a somewhat higher quality of life than the rest, they will have to decide whether to enter the competitive race for employment.
For the non-paid workers, life will be “livable” - a step way up from the quality of life of many, in both the under-developed, and developed, societies.
Democratic Marxist Global Institute (DMGI)
Original – 20/8/4; Recent Revision – 20/10/17
Author: Bob Armstrong, Coordinator
Recent Reviser: Bob Armstrong
Most Recent Postings:
24/2/2: CT.DM; DMPO; DM-G; DMGF; TRN
Fb Page: Democratic Marxism – Global
(https://www.facebook.com/profile.php?id=100064839518717)
Fb Group: Democratic Marxist Global Forum
https://www.facebook.com/groups/2045...ref=nf&__xts__[0]=68.ARB5MaP7fzlN9ItgmSkMWzv60Rd9mIxsQIkIgIa6_Guh2MGR6mV82GdH-IxgmiiVaJcZ-NLi7Cz46VX0nn78clmPjd-pttzlYPR9dmEubTBnBdnGohd0bl3Fy4k02cb3BVHNVOcfjANvEEUCRw6k1IZDDsZV6l9V1Id5_NomySGWmEpA3Inygttyrt3-jYH1m1M50W3d94tVElUVaZ-SrM-WZ4BkYEj0ZYF5Y5X2d7KRG_MQJtND8fXyDSkU0F1I4FVHkI_eoiyOazUgCRS0lmfetiENOGsaJPb6MfuHzQ92-u7gMI_E8888fus
E-mail:
demmarxglobalin@gmail.com
Snail Mail:
DMGI
P.O. Box 3246,
Meaford, Ontario, Canada
N4L 1A5
Website:
In development
Copyright – Democratic Marxist Global Institute - 2020
Even though you are a lawyer, how could you write a post which makes absolutely no sense mathematically nor culturally? You seem to be saying something like: the two and a half slices of bread your DM establishment would be lucky to produce in toto, would be so well distributed that it would provide a decent meal for millions of its citizens...
And the common man is not that stupid, to not understand what marketing is all about; it is their desire to enjoy little 'unnecessary' pleasures of life, that makes them buy widgets... will your DM 'government' expropriate them, 'legally'?
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