Joseph Schumpeter
Those of you who tune in to THE RIGHT PERSPECTIVE every Friday night, and who read my CUTTING COMMENTS know that I enjoy studying the works of the economists of the Vienna School of Economics. Economics is really a fascinating topic; a lot of people find it dull, but I find it fascinating. The other week we were talking about Joseph Schumpeter, and here in the CUTTING COMMENTS I have written about him.
Schumpeter once commented that Capitalism would not exist in the future. Socialism would replace it. Capitalism would destroy itself; its own success would cause its failure.
This is a rather odd statement for one who believed strongly in Capitalism, and fought to uphold its principles. But in Capitalism, Socialism and Democracy, Schumpeter made some very good points. He used the words “supernormal ability and ambition” to describe people capable of moving up in the business world. Without capitalism, they could never advance; only the ruling class gets to decide who succeeds. The capitalistic society does not assure happiness along with being better off. “Talents necessary for economic success don’t translate well into other realms of life.” – Don’t we all know people who shine in their arena of success, but in other ventures in life they haven’t a clue at how to manage themselves.
Through the rising up of big business, the small producers suffer. Alienation within the business community. Unhappiness. Sad people. Those out of the system. Those who don’t participate.
ANGRY PEOPLE
Saul Alinsky
That’s what Saul Alinsky was betting on. A lot of angry people that he could “organize” into one group. As individuals, he told them they had no power. But as an organized group they could take away the power from the “haves” so that the “have-nots” would be powerful. Community organization of the deprived; that was who Saul Alinsky targeted. Take it away from those who have it. Redistribution.
Schumpeter, who taught at Harvard, spoke about the Educational System. Everyone is being taught to qualify for The Great Job. The educational system is making everyone very knowledgeable and capable of doing the job beyond the level of satisfactory. But there are limited numbers of top-level jobs. Many can do the job, but only one gets the job. Those who are shut out become dissatisfied, negative, rejected, and ANGRY. Is that a good educational system? Who’s going to do the everyday job – a job that requires a lower level of education but a necessary skill? Are these what they call “jobs Americans won’t do”? Are we creating ANGRY people?
Schumpeter spoke about substituting shares of stock instead of tangible goods. He said it “takes the life out of the idea of property.” After a while the property is not even there, but the investor holds worthless paper. What is it that you are trading on the exchange? What did you originally buy? Why has the value gone out of it? Once again, you get ANGRY PEOPLE.
Schumpeter was talking about “rationalized thinking“. People in power telling us what we think. “The moral authority in the end turns against its own.”
Quite important, he said that because capitalism creates economic success, it also “creates, educates and subsidizes a vested interest in social unrest.” It produces “hostile intellectuals” – too many of which come into power. Hostile intellectuals are ANGRY PEOPLE. Angry People with power.
Interesting point of view – Schumpeter felt that as the Mass Media grew larger, the demagogues acquired more access to manipulating the public. “Public policy grows more and more hostile to capitalist interests.”
Schumpeter felt that in America, those in power did not have an understanding of what was at stake; a dismissive nature towards capitalism. “Legislative, administrative and judicial practice born of that hostility, entrepreneurs and capitalists — in fact the whole stratum that accepts the bourgeois scheme of life — will eventually cease to function.”
Schumpeter then concludes,quite depressingly, that “the bourgeois family may disintegrate. Children cease to be economic assets.” That’s the end of “bourgeois” civilization. Once you get to that point, that is the end.
Capitalism is then replaced by socialism. Capitalism by its own success produces ANGRY PEOPLE who gain the power to control the masses. Schumpeter wrote this and it was published in 1942. It was the New Deal he was addressing. He had witnessed World War I, and now World War II. As a business man Schumpeter had failed. He had met up with many problems in life. It was natural for him to look at things from a negative point of view.
In looking at how the New Deal was an intrusion into everyone’s financial position, he was very concerned with:
- Redistribution Taxation
- Controlling Business Cycles
- Wage – Price Controls
- Labor Regulations
- Antitrust
- Securities Regulations
- Monetary/Fiscal Policy
- and the overall public supplying the “indefinite extension of the sphere of wants”
The hard times he had known had led him to this view. Yet, would socialism replace capitalism? Capitalism prevailed after World War II. The US economy grew. The stock market surged. Ronald Reagan brought us Reaganomics. Wealth was created. America predominated.
Yet we have reached a time when ANGRY PEOPLE are now in power. They want to crush capitalism and redistribute the resources. Why should those who never worked to create the wealth be rewarded with receiving the wealth? Why should those who created the wealth gingerly hand it over?
Are we back to the times of the New Deal when great economic thinkers are discouraged?
Or,
Will Capitalism Live On?
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I was waiting for the next Cutting Comments instalment from Cheryl. As always, it was worth the wait.
Now I don’t know about you, but as I continued reading, totally engaged by the topic and the way a tremendous wealth of information was masterfully being funelled into the spongy grey matter without spilling a drop, I could feel the hair at the back of my neck raise slowly but surely, anticipating an end that would knock my socks off.
And then it came – and even though I anticipated it, I had to pick myself up from next to my chair after reading the bullet points. It did a bit more than knock the socks off.
WOW! And now I only have one question: If this does not do it, what will it take to make the blind SEE?
Yeah, I figured it out. We are losing it fast. It’s time we march…
http://animal-farm.us/change/we-are-all-socialists-now-446
We have not had a true capitalist system in this country for a very long time, but rather an oligarchy ever increasing in power. It has been but a facade of capitalism covering a highly manipulated scheme controlled by a few, enter the media and the federal government, along with the UN. These have worked together to sell a poor substitute for capitalism to the world, making real capitalism look like a failure when a free market has not existed, when the substitute is to blame.
The “moral authority” spoken of is at the core of the problem. There is but one moral authority, the God of our fathers which America followed in the beginning. Departure from self willed compliance with the morals and ethics which true Christianity teaches, a scheme carefully orchestrated and encouraged by the oligarchy, has created a venomous resentment towards God as he has come to be represented, and self centered individuals who think of nothing but themselves and how to acquire more.
Left alone, morality mixed with capitalism and free markets would produce a much smaller group of “have nots” than any economic system ever devised by man. When the majority recognizes the only true moral authority the have nots are cared for willingly by those who have.
A prime example of this is Dr. Ron Paul, who has delivered many babies in his career as a medical doctor with no charge to those who could not afford it. This is an exquisite example of morality and capitalism, and how the two compliment each other.
Thomas Jefferson saw the threat of amorality in economics, and warned against it:
“If the American people ever allow private banks
to control the issue of their money,
first by inflation and then by deflation,
the banks and corporations that will
grow up around them (around the banks),
will deprive the people of their property
until their children will wake up homeless
on the continent their fathers conquered.”
Sadly, this has been the case, and we are very close to the end goal of such a well laid and executed plan. The control of the money supply, combined with the lack of morality, which can be attributed largely to those who control the money supply, has created an environment where avarice has appeared to be not only commendable, but the main focus of life. Work ethic, and pride in a job well done is an antiquated notion. The result is a financially and morally bankrupt society on the brink of total collapse.
We have reached a point where education, finance, and even religion are controlled by the very oligarchy Jefferson warned about. Thanks to the United Nations via UNESCO (the source of our worthless institutions of educacation which produce “educated idiots”), domination of the churches and theology by the same oligarchs via large monetary grants, combined with an entertainment industry that constantly bombards people with moral sewage, we have a toxic combination of financial and moral bankruptcy today.
A strong element of socialism has existed since the New Deal, and a cradle-to-grave nanny state has emerged throughout the last half of the twentieth century on into the twenty-first.
Unfortunately, few have the understanding to penetrate the Mephistophelian/Orwellian fog that has engulfed America and the Western world.
Big government, controlled by the oligarchs, has been the largest contributing temporal factor to this demise. Now many common people with good intentions are looking to a fascist/socialist hybrid as the answer to all of the problems created by the gangrenous societal decay. Sadly, they will be disappointed. Looking to bigger government, and self professed philanthropist oligarchs who own the government to fix the chaos is a self defeating act, much akin to attempting to quench a blazing inferno with gasoline.
Good write-up Cheryl and Foxwood pointing to the ‘animal farm’ URL.
What we now need is a Benevolent Dictator, but among humans he will not be found. So, as it is written, the end of this Earth Age/Stage/Period is upon us (Mat.24:21). But after that the 3rd and last Earth Age will arrive, which will bring with it THE ONLY Benevolent Dictator of all times – Yahshua Messiah (Rev.19:15).
What are the masses doing every single mother fucking day when we punch the clock if we are not producing the wealth? Yeah we’re angry. Our CEO’s are not generating wealth for a solitary soul. They are nothing more than gambling addicted swine taking risks at the Casino they call Wall Street with chips from the FED. Fuck them…yeah, it is over, yeah, we are angry, and if you’re going to say we’re not generating the wealth we might just be angry enough to decapitate a few heads.