by ralfy » Mon 08 Dec 2014, 22:51:44
$this->bbcode_second_pass_quote('Newfie', 'I') see very little of capitalism in the USA. I see Consumerisim. Beyond that I ind of think that what Capitalism we had could not support sufficient growth. Thus Capitalisim gave way to Consumerisim, which is just a way to support continued growth at any cost.
Take our screwy health care system. The cost efficient, capitalistic, way for health care would require something far more efficient by way of a Payment system. Instead we have the most convoluted and inefficient payment system in the world. I work, pay taxes, money goes to IRS, transferred to another agency, transferred to the state, transferred to a disbursement t agency, and eventually reaches a Dr. who gives care to someone. There are far more employed in our health care money disbursement system than there are providers.
That fits a Consumerisim model where the goal is to provide full employment. It does not fit a capitalistic model here the goal is efficiency.
That makes sense. In our calorie rich world we have no problem making things. We have all the stuff we need. What we have is a social problem trying to keep people employed, so they feel useful. So they don't riot. Consumerism works to this problem very well. It also requires continued growth to keep up with the growing population.
Other examples abound.
In the US, I contend, belief in this system has risen to the level of religion.
Consumerism is the result of free market capitalism.
The region now known as the U.S. started with free markets, after which European colonizers formed enclosures, and with government legitimized private property and started using money. After that, business men (later, robber barons) using newly formed technologies exploited natural resources and started modern industrial civilization. That's when free market capitalism started.
With industrialization, capitalists during the early part of the twentieth century manufactured various goods, and with banks extended easy credit to factory workers, thus establishing a consumer society.
After WW2, high labor costs and what was now a growing global market prompted capitalists to outsource manufacturing. Meanwhile, more citizens (many with college degrees) moved away from blue collar work to earn more money in white collar jobs. The use of the dollar as a reserve currency, the extent of the manufacturing sector, the strength of the military, and large amounts of gold made available from allies during the war helped, and also promoted consumer spending as a means to make the economy grow, not to mention capitalists moving from Main Street to Wall Street to make even more money.
All these were emphasized further starting with the early eighties, as Reaganomics deregulated financing while capitalists used the military to protect the petrodollar and gain access to natural resources worldwide. How did U.S. households react to this? They voted for one Reagan clone after another, spent happily on houses, appliances, etc. Meanwhile, the rest of the free world started copying what the U.S. was doing: receiving outsourced labor in manufacturing with dreams of moving to financing, white collar jobs, and middle class lifestyles.
This also explains why consumerism is important for capitalism. As stated, capitalism focuses on efficiency, but the purpose of efficiency is productivity, and the benefit of productivity is increased sales, and with that more profits. After all, what use is there to be more efficient if not to make more profits, and what other way is there to make more profits but to sell more goods and services? And what is purchased is used. Hence, capitalism dependent on consumerism, and capitalism leading to the same.
That's the reason why many other countries copying the U.S. saw increasing sales for cars, appliances, construction equipment, etc.