Collapse of Capitalism: The 9 Plagues

collapse of capitalismLet me be blunt: The collapse of capitalism is approaching.

Or, perhaps better said: Our marginally capitalist, partly-free market systems are approaching a massive collapse.

Not because of what capitalism is, mind you, but because the powers that be have bastardized it.

Capitalism can bear many distortions and abuses, but it is not indestructible.

And, make no mistake, the ‘capitalist’ system we have today has been massively corrupted, so much so that it’s sagging under the load… and will continue to do so until the proverbial straw breaks its back.

Collapse of Capitalism: The 9 Plagues

  1. The average producer is being stripped bare. In the US, for example, the total take of taxes has not risen dramatically, but fewer and fewer people actually pay them. There was a big uproar during the last election cycle over the fact that 47% of working-aged Americans paid no income tax. That means that the half who do work (read suckers) are paying the whole. And more than that, they are also paying for the many millions who are on food stamps and disability. Producers are being punished and abused, made into chumps.
  2. Thrift is essentially impossible. I’ve explained this in detail previously, but a hundred years ago, it was possible for an average person to accumulate money. Mechanics, carpenters, and shop owners slowly filled their bank accounts with gold and silver. It was common for them to make business loans and to retire comfortably. But now, all of our surplus is drained away to capital cities, where it is poured down the drains of welfare, warfare, and political lunacy. Money has been removed from the hands that made it, and moved into the hands of non-producers, liars, and destroyers.
  3. In 2008, US federal government regulations cost an estimated $1.75 trillion, an amount equal to 14 percent of US national income. Let me restate: Simply complying with regulations costs American businesses more than $1,750,000,000,000 (that’s $1.75 Trillion) every year. This, again, is money taken out of production and wasted on political lunacy.
  4. Small businesses are being squeezed out. Take a look at the two graphs below, and understand that as small businesses are squeezed out, only the large corporations remain. These days, only the largest and best-connected entities are able to get their concerns dealt with (by the politicians they fund). Small operations are cut off from the redress of their grievances and are crushed by taxes and regulation. And don’t forget the comments of Mussolini:

    Fascism should more properly be called corporatism, since it is the merger of state and corporate power.

    While there may be no dictator, state/corporate partnerships are taking over commerce in the West.

    The Collapse of Capitalism
    The Collapse of Capitalism

  5. The military industrial complex is out of control. Their lobbying, fear-mongering, and spending can only be characterized as obscene. Dwight Eisenhower was right when he warned us about this in 1960. It is sad beyond measure that so few Americans took him seriously. Trillions of dollars and millions of productive lives are being spent on the war machines of the West. Never forget that wars destroy massively and produce nothing.
  6. All the Western nations now feature large enforcer classes, composed of bureaucrats, law enforcement units, inspectors, and so on. In the US alone this amounts to several million people – none of whom produce anything, and all of whom restrain producers from producing. Millions of people are paid to restrain commerce.
  7. We now have a very large financial class in which blindly aggressive people make millions of dollars. The problem is that finance is not productive. It may allocate money in beneficial ways (though it often allocates mainly to itself), but it doesn’t actually produce anything. At present, the allocators get the big bucks, and the producers get scraps.
  8. The modern business ethic has become about acquisition only. In more enlightened times, it was also about creating benefit in the world, or at least creating newer and better things. Mere grasping is an insufficient philosophy for capitalism; it leads to dark places.
  9. Every nation on the planet is using play money and forcing their inhabitants to use their play money. Moreover, they have super-empowered a small class of Central Banking Elites, who make fortunes on their currency monopolies, and who are entirely unknown to the producers who unwillingly (and unknowingly) purchase jets and yachts for them. Our money systems have brought back aristocracies; a class that is both hidden and immensely powerful.

I think the point about the collapse of capitalism has been made with these nine points: The West has built a hyper-political culture built on lies, misdirection, fear, avarice, envy, and sloth. (Avarice, by the way, is a mindless craving for gain.)

So What’s Next?

That’s up to the producers. Everything hinges upon them. The game, as it is, depends entirely on them being willing to accept abuse.

All that is necessary to fix this is for the producers to stop being willing victims. Simple, I know, but there is a problem with such a sensible idea:

The producers are convinced that their role in life is only to struggle and obey.

Modern producers believe that the ruling classes have a legitimate right to tell them how much of their money they are entitled to keep, which charity causes they’ll be forced to contribute to, which features their car is required to have, and much, much more. Why? Simply because those other people are in “high positions,” and they (the producers) are in “low positions.” An evil assumption has been planted in their minds:

It is right for important people to order me around.

The productive class holds all the real power, but they are nearly devoid of moral confidence. So, they are abused without end.

Right now, a parasitic ethic rules the West and will continue to rule so long as producers play the part of the suckers. If this continues, what remains of capitalism will grind to a halt and will be overrun by a Neo-Fascist arrangement – not the dictator and swastika variety – but one where the state and powerful business interests merge into one unstoppable and insatiable force.

On the other hand, if ever the producers wake up from their moral coma and reject the role of doormat, they will build a society embodying the ethics of production. It almost sounds impossible, I know. But it is has happened before and could happen again.

It’s up to us.

Paul Rosenberg
Collapse of Capitalism: The 9 Plagues

18 thoughts on “Collapse of Capitalism: The 9 Plagues”

  1. A. This is democracy in action.

    B. This is symptom of A.

    C. This seems to be the nature of government, to regulate. As a small
    business owner I have to deal with all this crap, its annoying, but its
    not going away without a major change in government and that won’t
    happen without a business destroying economic “event”.

    D. That’s capitalism. The strongest make the rules and use them to limit competition.

    1. The catch with the military is that its necessary for defense, but
    oh so tempting to use for “strategic” purposes. Mandatory service for
    all would temper the impulse for empire building, I would think.

    2. This is a cultural problem in that we have a bunch of cultures who
    hold different values and are constantly fighting to impose those
    values universally through control of government.

    3. and 4. This is capitalism, again. It was never about “creating
    benefit in the world”, its always been about acquisition. All those big
    name capitalists from the late 19th and early 20th century were
    “acquirers” and “allocators”. Their goal was to build commercial
    empires, monopolies, and become wealthy.

    5. This is a symptom of capitalism, see “D”.

    All of this is unavoidable. The clever, capable and corrupt will always
    rule regardless of political or economic systems. They will also always
    destroy what they rule. Then the cycle begins again.

  2. “Producers”? WTF? No wealth is ever created except by putting work to raw material. Creating a system where people get paid who do no labor is the problem. Too many parasite “shareholders” and not nearly enough pay for workers is the problem.

  3. I do not equate employment with being a sucker producer. When a person is employed, they are a “slave” to their employers. Few workers today are unaware of their slave masters. It is either Big Corporate/government, or small business. If the employers are small business owners, they are “slaves” to the government regulations. (Big Corporate is a Leviathon. They are not a slave to anyone.) Both go into these positions knowingly. In return for their servitude, they get paid. They buy what they need, or more likely in our society, what they think they “need.” Like it or not, most of us are on the lower levels of the food chain. Whether one has a hissy fit about Big Corporate or not, it will not help the worker. Being a “sucker” may very well put food on the table. They didn’t learn obedience from their employers. It was government run schools.

    Not every job produces a product. There are few manufacturing jobs left in the US. While some of those jobs were factory jobs, there were many jobs that were high skill jobs. Not only are they overseas, but even if the jobs re-appeared in the US, the computer has made the working person redundant. The required numbers of workers would be drastically reduced.

    I find it interesting that you equate “thrift” and taking out a loan to be the same genre. There are only two basic ways to accumulate money. To be self-sufficient (doing things yourself) and reducing expenditures. Taking out a loan makes you a slave to the bank. It is neither self-sufficient, nor does it reduce expenditures.

    In your article concerning thrift, you mention the year 1890. In that year, the average person had the skills to do many of the things themselves instead of paying someone else to do it. They lived a life of thrift. They made, fixed, patched, or did without. They had a greater availability of resources that are unavailable to us. It was easier to grow a garden, have small livestock, and do it yourself on small lots, without the burdensome zoning regulations we have today. This also meant that the standard of living was lower. Just three years later, there was a “panic.” We call it a Depression.

    “[I]t was marked by the collapse of railroad overbuilding and shaky
    railroad financing, resulting in a series of bank failures. Compounding
    market overbuilding and the railroad bubble was a run on the gold supply. The Panic of ’93 was the worst economic depression the United States had ever experienced at the time.” (Wikipedia)

    When the rubber meets the road for us, few will meet the challenge. We are a “do it for me,” society, instead of doing things for ourselves. We do not know what thrift, or constraint is. It will be to our hurt.

  4. The “47%” comment – did it erroneously include government employees as part of the working class?

    1. Please don’t, read any of the countless books written by ethically sound authors. If you want to read free-market philosophy, read Adam Smith. If you want to read about the capitalist exploitation of labor, read Karl Marx. Ayn Rand is ethically devoid, and thus theoretically unbalanced.

  5. It gets tiring hearing, constantly, what is wrong – I know the problems. I want to know, of those writing these type of doom-and-gloom articles, what they have done, or are personally doing, to prevent the apocalypse. Whining to me is NOT the solution.

    1. No, but the people out there actively disobeying are not spending great amounts of time reading & posting online. Between producing and defending what they produce, there’s not a lot of time left. There is no one approach to undermining those eating away your substance. Take what you love and what you care about, and figure out how you can productively disobey. No one can know your circumstances and abilities, and no one is going to hand you an answer.

    2. There is no solution to be had from within the very system that is failing… if there were then it wouldn’t be failing. Its not implying apocalypse though… just a rather rough sorting out process.

  6. Good stuff here. And thanks in particular for point #8. Even the ‘great, enlightened” Walter Block is a boob on this one. We had a discussion about this once. He made clear his conviction that government and large multinationals muscling their way into developed nations, setting up slave wage sweatshops, just to line the shelves of stores with an overabundance of goods that only satisfy investor targets, is pure “capitalism”. The same variety as the local guy who provides needed goods and services to his community. To me this is the fraud that fuels capitalism’s detractors. And they are right. Because despite Mr. Block’s encyclopedic knowledge of other people’s economic theories, this is absolutely not captialism. Third world sweatshops are not ‘free-enterprise’. 30 different patents on the peanut butter and jelly sandwich is not ‘innovation’. And junk stores, carrying the leftovers from the discount store, who carry the leftovers from the box stores, who carry the leftovers from the mall stores, is not supply meeting demand. It is an empire building corporate machine, no different from what we see from the war machine. Its here, it’s forced upon you and you will eventually be consumed by it. I know I am. I live near a sea of strip malls full of an orgy of useless goods that will never be needed or used in 10 lifetimes. Yet new stores and strip malls go up every day. And while I’m all for having choices, the reality is just blatant excess.

    What many continue to erroneously call ‘capitalism’ is actually just a self feeding resource destroying machine where quantity is king and quality is sacrificed to production for production’s sake. WE don’t need this much stuff, especially as quality is sacrificed in the interest of pumping out ever growing numbers. But the megacorps pumping it out have to keep pumping it out to sustain the growth model that supports their stock prices, stock markets, and the overly indulgent lifestyles of the few at the top. And only a fool or a liar can’t see that this same cycle is what requires and perpetuates the endless expansion of credit and monetary supply that has destroyed American wealth while enslaving the working class to it. Overconsumption is a sickness that has been pushed upon us in an effort to satisfy the addictions of a few. There is no innovation, creativity or art involved. No reasonable balance between supply and demand. Just the endless push towards more and more and more. That is not capitalism, that is addiction and empire. Nobody asked for or needed 500 different stores selling the same mass produced garbage. Nobody demanded diminished quality goods at ever inflating prices. They’ve just been pushed upon us beside a bombardment of advertizement to make us think we want and need them. All for the benefit of the same fascist cronies at the top who are responsible for the other 8 plagues.

    Paying cash for heroin IS a free market transaction. But buying more and more heroin to feed your worsening addiction to it is NOT capitalism. The first step to our collective recovery from these plagues is to stop acting like it is….

  7. The most important of the 9 listed was number 9!

    9. Every nation on the planet is using play money


    forcing their inhabitants to use their play money!

    My overall opinion of this article is that it was yet another “reactionary revolutionary” doing good analysis, followed by bullshit, since the “solutions” are based upon the same old false fundamental dichotomies, between predatory VERSUS productive.

    Better solutions should be based upon deeper understandings of energy laws. Of course, we should start with radical changes in our understanding of the concept of entropy, in order to understand better that BOTH the parasitical predators, and their productive prey, are toroidal vortices operating as entropic pumps of the same energy.

    This kind of article presents a correct common sense analysis which presumes fundamental differences between the parasitical parasites, VERSUS the productive prey. Those false fundamental dichotomies then lead to failures with respect to “So What is Next?” Those old fashioned false fundamental dichotomies continue to be matched by a set of impossible ideals, proposed as the “solutions.” Attempting to achieve impossible ideals will continue to backfire, and to actually cause the opposite to happen in the real world.

    Metaphorically speaking, the separations of the parasitical predators, VERSUS the productive prey, is the separation of the Vicious Wolves VERSUS the Zombie Sheeple. Within that metaphorical description of the human ecology, within which our political economy operates, the “Central Banking Elites” are the top carnivores. Those banksters serve at the top of the social pyramid systems, where all the compartmentalized powers converge. Thus, the banksters may be called the keystone species within the Neolithic Civilization’s style of economic ecology. The banksters are the lynch pin that hold together the systems of all the other kinds of lesser parasitical predators, and the phenomena thereby generated, as described in the other 8 points in this article.

    The banksters are the supreme gangsters. The banksters have been able to apply the methods of organized crime to take covert control over governments, in order to to legalize the counterfeiting of the money supply, identified in point number 9. However, there can be NO useful and worthwhile solutions which then collapse back to recommending that “Everyone should be better sheeple!”

    Instead, the only genuine solutions MUST be based on understanding that everyone needs to become better wolves. By that I mean that the fundamental concepts should be consistent with radically changed conceptions of energy laws, based on the ideas of SUBTRACTION and ROBBERY.

    Those kinds of radical changes in the paradigms in political science then change the ways that we think about everything that follows: the basic history of human animals living as robbers in their environments, which developed civilizations directed by the War Kings, which assembled and channeled the distributed powers to rob through sovereign states, which were then covertly taken over by the Fraud Kings, which are the “Central Banking Elites.”

    This article correctly identifies the problems that too many of the productive prey act like Zombie Sheeple, that have been brainwashed to believe the biggest bullies’ bullshit:

    “The producers are convinced that their role in life is only to struggle and obey.”

    AND SO, THEREFORE, “It is right for important people to order me around.” …

  8. What happens when people stopped over consumption and/or consumerism and basically whittle it down to just the bare necessities? Wouldn’t that stop capitalism?
    What are your thoughts? In my opinion it would. I’m asking because I really wanna know yours and other people’s thoughts. Thanks.

  9. You forgot about outside forces… meaning the environment we live in. The simple fact that bees are dying everywhere. Our food supply is already maintained through largely chemical fertilizers. Dont forget implosion either – the rates of depression, obesity and disease are continually on the rise per capita. The signs are all around and have been building slowly for decades. Some naturally say “oh your just a doom and gloom person”. But they are just in denial and deep down most know it. Obviously every single civilization and large organized society has fallen. It seems that a lot of people deem our society invulnerable to this and only have a few hundred past years to base that on. Its denial and complacency.

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