THE ECONOMIC SYSTEM: A RADICAL CRITIQUE.

 

 (5.11.06)

 

This is a 50+ page radically critical analysis making clear why we cannot develop a satisfactory and sustainable society unless we eventually change to a very different economic system.  (See The New Economy.)

 

 

 

 

Our economic system is the basic cause of most of the serious problems evident in the world, especially the damage to the environment, the poverty and deprivation of the Third World, armed conflict and the social breakdown in the richest countries.  The central faults in the system are:--

 

a) making production for profit within a free market the basic social mechanism, thereby producing grossly unjust and inappropriate development and distributions, and

 

 b) making limitlessly affluent living standards and economic growth the goals, and thereby ensuring that our society is grossly ecologically unsustainable.

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Contents:

 

1.  GROWTH;

 

           This economy must have growth.

           The Limits to Growth Analysis of our global situation.

            It is a Ògrowth and trickle downÓ rationale.

           The volume of wasteful and unnecessary production is enormous

 (but essential).

            Growth here often causes loss there.

            Growth creates or intensifies all the big global problems.

The environment problem

As the economy grows the quality of life falls!

 

2.  PRODUCTION FOR PROFIT

WITHIN A COMPETITIVE MARKET.

 

This economy fails to do what is needed, just or ecologically sustainable.

Profit ignores need.

            The marvellous free market

             ÒThe market makes the most efficient allocations.Ó

            The freedom of enterprise

            ÒMove over pal – Find something else to sell."

            What regulates? The market, or needs and rights.

Endless, mindless, un-winnable competition.

            Privatisation.

Public vs private ownership of firms

            Unemployment

Payment for work.

Work.

            Lousy work

            Wages

            Inequality

Deprivation and social breakdown FIX

Globalisation

Origins, nature and effects.

The grab by the corporate super-rich.

Third World ÒdevelopmentÓ

            Imperialism.

Class war.

The morality of the market is unacceptable.

 

 

 

                     3.   MONEY, CAPITAL, INTERST, DEBT.

Interest,

           Debt.

           The money creation and banking system.

The myth that capital is crucial for development

 

                                4.   ECONOMIC THEORY.

 

The distortion; the warped understand that results.

Some of the essential definitions built into conventional economics are

           viciously misleading.

            Taking the GDP as the important measure.

            Acceptance of the market as the basic mechanism.

            The human nature assumptions within the theory.

It is not a general theory of economics; it is only about a capitalist

           economy.

Economic theory as part of capitalist ideology.

We should therefore study POLITICAL ECONOMY, not economics.

            Economists.

            We should be very angry.