Posted 10 years ago on Sept. 27, 2012, 1:15 p.m. EST by DemandTheGoodLifeDotCom
from New York, NY
This content is user submitted and not an official statement
CAPITALISM IS THE PROBLEM
The world's problems are all economic. And the solution to the world's problems has been the same for the past couple of centuries: The solution is for workers to organize so that they have the power to replace capitalism with socialism.
The problem with capitalism is that it exploits workers, because it only pays them a tiny fraction of what they produce.
In capitalism, half of all the income that workers produce gets paid to a handful of owners of capital who got lucky gambling in the market like bankers and entrepreneurs, as shown here, and most of what remains gets paid to a small handful of people who have market bargaining power merely because they are scarce like athletes and celebrities.
The vast majority of the workers who produce everything - the engineers, doctors, construction workers, factory workers, miners, farmers, teachers - have to fight over the little income that remains.
Even though worker productivity is $65 per hour, as shown here, which is enough to make every worker wealthy, most workers are broke because they only get paid a tiny fraction of the $65 per hour they produce. Most of that $65 unfairly gets paid to the owners and scarce workers.
Because of capitalism's exploitation, 50% of Americans are living in or near poverty, according to the latest census.
SOCIALISM IS THE SOLUTION
The only fair economic system is one which does not exploit workers by paying them 100% of the income, since they do 100% of the work, by paying no income to owners of capital since they do no work, and by paying workers based on how hard they work, not based on how scarce they are in the market. That economic system is called socialism.
So socialism is just an economic system without exploitation. It is a system that pays workers the full value of what they produce.
It's a system summed up in the socialist slogan, "To each according to their contribution."
Socialism is defined in the Merriam Webster dictionary as, "a stage of society in Marxist theory between capitalism and communism and distinguished by unequal distribution of goods and pay according to work done."
Karl Marx in Critique of the Gotha Program wrote, "Accordingly, the individual producer receives back from society...exactly what he gives to it. What he has given to it is his individual quantum of labor."
Socialism is simply a system where you can only get paid by working and the amount you are paid is based on how hard you work, which you do by limiting differences in income between workers to only what is necessary to get them to work hard jobs and to give their maximum effort in performance based jobs.
If we allocated income this way:
- it would pay workers from $115,000 to $460,000 per year, as explained here
- for working just 20 hours per week, as explained here.
It would make every worker wealthy and when you make every worker wealthy, you eliminate nearly every problem in society.
The key difference between capitalism and socialism is that socialism does not pay any income to owners of capital. No unearned income, such as profit, rent, interest, or dividends, is paid to anyone for merely investing their capital. In order to get paid an income, you must actually work.
Unearned income does nothing but rob workers of half the wealth they produce each year.
It is just welfare for the lucky. It allows guys like Mitt Romney to get paid $20 million per year every year without working a single day merely because he got lucky in the market a few decades ago. Workers produce that $20 million every year, not Mitt Romney.
A system where workers, who produce everything, are paid half the income and a few lucky gamblers, who produce nothing, are paid the other half is absurd.
Of course, you need investment money to run an economy. But just like we don't need to pay people to print their own money in order to make sure there's a supply of money in the economy, we don't need to pay people to invest in order to make sure there's a supply of investment money in the economy.
Just like the central bank can provide the economy with the necessary supply of money, it can provide the economy with the necessary supply of investment money. Workers don't need to pay private investors.
In socialism, all capital and businesses are equally owned by workers. So loans and investment are funded with public investment funds as explained here.
CHANGING THE SYSTEM
The solution to the world's problems is to educate workers on how much money they are losing to exploitation (most), to educate them on how much more income they would get paid in a system that does not exploit them ($115k-$460k for working 20 hours), and to then organize them politically so they have the power to change the economic system and put an end to the exploitation.
Workers have the basic human right to refuse to work in an economic system that exploits them and that allocates income unfairly. They have the basic human right to freely choose to only participate in a system where they get paid 100% of the income they produce and they get paid based on how hard they work.
Workers should have the freedom to choose whether they want to work in a capitalist sector or in a socialist sector. In order to give workers that choice, workers just need to elect politicians who will enact a very simple policy: Authorize the Fed to provide enough investment funds to launch enough new companies to fully employ everyone who wants to work for a socialist firm which is only fair since they are currently doing that for that for privately owned capitalist firms.
A FREE SOCIETY SHOULD HAVE FREEDOM OF CHOICE
If we passed a bill that authorized the fed to fund the socialist sector then every worker would have the freedom to choose whether they work for a capitalist firm where they are broke, work 40+ hours per week to make some owner rich, not guaranteed a job or benefits and have a 1 in a million chance of becoming a millionaire, or a socialist firm where you are paid at least $115k, work 20 hours per week, are an equal owner, guaranteed a job, health care and a pension, and guaranteed to be wealthy.
The socialist sector would work largely the same way as the current economy works now. It will have individually run firms that must be profitable and compete for customers in the market. The difference is that 1) workers have equal ownership in not just the firm they work at but in all the firms of the socialist sector and 2) 100% of the income (wages, profit, interest and rent) is paid to workers according to a democratically approved plan that limits differences in income between workers to only what is necessary to get workers to do mentally or physically hard jobs and give their maximum effort in performance based jobs.
This economic system is already proven to work in practice. Mondragon is a good example. They have 100,000 workers who are all equal owners, produce $20 billion in yearly revenue and have out-competed capitalist firms for 50 years. There are thousands of similar worker co-ops in the US. Economics professors Richard Wolff (rdwolff.com and democracyAtWork.info) and Gar Alperovitz (http://democracycollaborative.org/) are two popular advocates of this idea.
A lot of workers need to be organized to get a policy implemented at the federal level, but raising the minimum income to $115,000 and reducing the work week to 20 hours is a deal that enough workers may find worth organizing for.