Raw Capitalism smothers Free Enterprise

Free Trade and Globalization have made a mockery out of the Free Enterpise system.

Raw Capitalism has knocked out the Free Enterprise system. Financial leaders like Alan Greenspan chose to feature money products by making money on money instead of making things. For example, Greenspan liked the home equity market as a financial product. He thought money could be made by providing loans on the asset of homes that were growing in value. It seemed like a win win situation except for the fact it was based on an upside down economy as demonstrated in the fall of the mortgage and banking industry.

Every structure needs a foundation and many of the money products and investments are only stand alone products which can not sustain for any long period by themselves. A basic economy is needed to act as a foundation. The Free Enterprise system was the foundation until Free Traders and Globalists found a way to chop up economies and send them around the world for the sake of cheap labor. However cheap labor begets cheaper labor in a world of terrible need. And in the end you can not do business with people who do not have money. You first have to find a way to provide people with adequate capital for any system to work. With Globalization and Free Trade, you have workers making things that they can not afford to buy themselves let alone have any money left to buy anything the more prosperous nation has left to sell. In the end a working poor class grows in the more prosperous nations who soon find out they can not even afford the cheaper imports. In the USA, we now have a working class that has to depend on government help to survive. There are even homeless workers who do not make enough money to afford shelter. Many school systems are finding many children in attendance without any home address. About one third of the population in the U.S. live in poverty. This matches up with the fact that only about 38 percent of all workers in the U.S. qualify for unemployment insurance. The majority of workers apparently do not work long enough at any one job or make enough money in any given period to qualify. Workers are being sacrificed on the altar of greed. And everyone loses when 70 percent of workers pay more in payroll taxes than they do in income taxes.

In further posts we will go deeper into the story and explore what when wrong.

The old sayings apply here. What comes first the chicken or the egg or you can not put the cart before the horse.

History demonstrates that we divide into cultures, societies and nations. We break down into units to better serve the needs of each community. Globalist Free Traders try to cut out parts for the sake of making more money for a few. They try to make a one size fits all world economy but forget what it takes to make each society to be self sufficient. When production is moved from place to place irregardless of the specific needs of each community, burn out societies are left behind when the production moves out.

The only thing that will work is local value added Free Enterprise economies fitted to the needs of whole commounities and not just parts. There has to be added stages of value added in each setting from raw product to the retail or end user stage with people adding to the value at each level for the sake of the whole society. Free Enterpise was chosen as the way to do it. In the Free Enterprise system, owners grow or make something and put a price on their efforts to provide them with a decent living. At the same time, the owner has to pay the workers he uses a living wage in order to afford the things the need in the setting where they live.

I was surprise when I read Alan Greenspan's book The Age of Turbulence that he wrote hardly nothing about the Free Enterprise system and the term Free Enterprise was not even in the index of his book. Apparently we have a type of Capitalism that considers Free Enterprise a hindrance in making more money. Free Trade is not trade as historically practiced and defined. In the past, trade was based on trading something one nation had for something the other nation had. It was never based on moving production from place to place for the sake of cheaper labor which even absorbs the high cost of long haul shipping and its negative impact to the ecology.

Free Trade has made human beings the main product being traded in a new kind of slave trade. Workers are put on a world trading block to compete with each other for the same jobs. No job is safe - low tech or high tech. Research and development is a waste of time too if in the end the production phase goes elsewhere.

Who said we had to compete like this in a global economic arena. The Global Economy certainly has not evolved in any natural economic way especially when millions have lost their jobs during the most massive dislocation of jobs in U.S. history. No natural rational process would let this happen. However a few elite groupings in government, big business, the media and in the academic world drove the process not matter what the consequences were.