The capitalist model cannot exist without economic crises.

Have you ever wondered about the causes of financial crises? Probably yes, if you decide to pay attention to this topic.

In fact, everything is very strange in a science like economics. Many are not ready to consider it as a science.

The situation when the progressive development, financial well-being of a number of countries of the world suddenly gives way to a sharp drop in assets, quotes, exchange rates, sometimes even people who consider themselves to be specialists in the economic field seem incomprehensible.

Financial crises, arising often from nowhere (as it seems to many), have covered world markets for more than a century and a half. This is not counting what was before the 50-ies of the XIX century, when the financial system was different.

Crises were “locomotive”, “oil”, “alcoholic”, “mortgage”, “insurance”. Crises rolled because of the large number of unemployed, because of the small number of unemployed, because of high prices for raw materials, because of low prices for raw materials, because of military actions and because of the absence of military actions in this or that region of the world .

In the video, which is presented to your attention today (video of the channel MyGap), it tells about a distant economic crisis that arose as early as the nineteenth century. Today it is called "the long depression". The capitalist model cannot exist without economic crises.

Comments

[Kirill Vladimirovich]

Yes, that’s the model, they cut the bills, and the carriage of the clipper should be somehow returned to the starting point in order to cut further, that’s the crisis as a tool for returning it, relieving stress from the population, updating the population’s thinking patterns

[Pessimist22]

But at the same time, the capitalist model of society is different, for example, if you take Finland and Russia, much depends on society itself.

[Maki Avellevich]

any system has a phase of movement / desire for symmetry and vice versa for chaos.
capitalism, socialism, jamaharia, it does not matter. the mechanics are the same

[vladimirZ]

The basis of crises under capitalism is the spontaneous uncontrolled process of the development of the economy, production, finance, markets, the privately capitalist mode of production, as the basis of their life.
Therefore, in a number of countries — the USA, Japan, Sweden, Norway, Finland, Germany, etc., they have switched to their state regulation, so that somehow, there is no way to remove crises as phenomena — this is simply impossible under capitalism, but to mitigate their course.

In the USSR, already in the industrial period of its development, with a planned economy, there were no such crises — there was no mass closure of enterprises, growth of unemployment, the accompanying social tragedies. There were crises related to the distortions of forced planning in favor of heavy industry, the defense complex of the national economy, and the lag in this connection in the development of goods for the population.
This, unfortunately, was the main factor of dissatisfaction of the Soviet people, and against the backdrop of the ideological confrontation between the Cold War of the USSR and the Western capitalist world, it triggered the collapse of the USSR, the socialist camp, and socialism itself. Hope temporary.

In Russia and the post-Soviet states, upon the seizure of power in them by anti-socialist, pro-Western elements, they decided to completely abandon the regulation of the economy and finances, to deviate almost completely from leadership and influence on production, i.e. in fact, go over to the pre-crisis model of the capitalist state with inevitable systemic crisis phenomena of the economy, finance, the closure of industrial production, mass unemployment, and the complete curtailment of the social program to support the population.
How will this end in Russia?
The political crisis grew into an inevitable revolutionary situation, and the evolutionary restoration of the social socialist state.

[Vadim237]

For Russia, this will end with further development - no revolutionary situations will be dealt with by anyone now, people are looking for ways to earn money and work.

[vladimirZ]

For Russia, this will end with further development - no revolutionary situations will be dealt with by anyone now, people are looking for ways to earn money and work.
- Vadim237 (Vadim)

And where are these people "able to earn and work" if most of the enterprises are closed? No work! Unemployment in millions.
What kind of Russia do you live in? In the television?
Protest rallies are held in all major cities to the policies of the current government and its anti-social actions.
In addition to millions of unemployed, there are millions of working poor and poor people in the country, already officially confirmed by statistics. And this is still the working age population.
And what about the millions of elderly in pre-retirement age? They will be left without work and pensions. How do they live? For what?
Or do you propose to them, as Edrosov's deputies, "to leave the comfort zone", "not to rely on the state, which owes you nothing," to "save up for pensions" while paying insurance premiums to the Pension Fund of Russia, to give up their right to the pension they earned?
There is no and will not be any development of Russia under the current liberal capitalist anti-people’s government, because it is impossible to build a developing economy only on the export of raw materials and oil and gas, with its massive offshorization, the level of corruption, theft and embezzlement.
And is this not that social combustible material for the revolutionary situation that capitalist power itself creates?

[Vadim237]

In fact, in Russia there are more than 600000 operating factory factories, not counting private offices, services and so on and the official statistics are 5 million unemployed, new enterprises are being introduced every day, the day before, an aluminum plant was launched in the Krasnoyarsk Territory, with staff for 10000 people, and At the expense of rallies in all cities, I have not heard or seen, if there are any, then at least people participate in them.

[vladimirZ]

In fact, in Russia there are more than 600000 operating factories, this is not counting private offices ...
... but at the expense of rallies in all cities, I did not hear and did not see
- Vadim237 (Vadim)

Ha ha ha With 600 thousand working factories, where did 5 million unemployed come from ???
For those who just watch TV, there are no problems at all. Russia is "a great power that defeated America in Syria", "how to provide assistance to Syria and Venezuela," "the problem of Ukraine," and "how happy the Russian people are under Putin." All for you, the circle of questions has been exhausted. Good night, children".

[lucul]

Yes, that’s the model

In short, all capital crises are due to loan interest. Because the loan interest is unsecured fiat money, which, accumulating over the years, ultimately bring down a cap. the economy. )))

[ProkletyiPirat]

Quote: lucul

In short, all capital crises are due to loan interest.

Mortgage interest itself does not lead to a crisis; unbuffered inflows and outflows of investments lead to a crisis. All industries, including agriculture, require a laminar, not turbulent, flow of investments, as soon as buffering is not enough to ensure a laminar flow of investments, the company goes bankrupt, but most often there is a refinancing (loan buffering) and the company loses profit and / or goes to other hands.

[Nick_R]

Cyclicity, or rather a sinusoid in n-dimensional space, is the main form of movement, and therefore life. So capitalist cycles are NORMAL. The smaller the amplitude, the slower the development, the absence of amplitude - death. True, an excessively high amplitude threatens to destroy the system. Optimum in the middle.

[TAMBU]

and I thought it a sinful thing that the main form of movement is an exponent ...

[Mcar]

If humanity does not destroy private property, private property will necessarily destroy humanity.

One young man, the son of my neighbor, puzzled and perplexed me with the question: In a nutshell - what is Marx's “Capital” about? Then I could not answer him, in fact, to retell in one phrase 3-4 volumes of a difficult text to understand. Now I can, prompted. But not in two, but in three: the essence of Marx's “Capital” is the destruction of private property.

Inside all the pre-capitalist modes of production, the prerequisites of the following structures were ripening, which, having reached a certain phase, led to social revolutions - a change in the basis, superstructure and, accordingly, the emergence of a new socio-economic formation. The process of capitalist reproduction, in contrast to its predecessors, takes on a cyclical character, the main phase of which is a systemic crisis. Production, having gone through the crisis phase, goes into a state of depression (stagnation), followed by the recovery phase, followed by a rise. These four phases make up the industrial cycle. Its main phase is the crisis, it is he who creates the cycle. All other phases are, as it were, derived from the crisis. A systemic crisis is a consequence of the internal contradictions of the capitalist system and an integral phase of its development. The onset of the capitalist crisis can be delayed, but impossible to avoid.

Crises are intrinsic to capitalism; they express the essence of the bourgeois mode of production; therefore, capitalism acts not only as a form of development of productive forces, but also as a form of their inhibition and destruction.

The main contradiction of capitalism is the contradiction between the social character of the production process and the private capitalist form of appropriation.

The social nature of the production process is a consequence of the division of labor. A large number of people are involved in the production of ready-to-eat products, providing for the extraction of raw materials, the production of means of production, the functioning of energy and transport systems, etc. Individually, all this is impossible to produce.

For capitalists, the goal of participating in the organization of production is to make a profit, which is a measure of the effectiveness of activity in bourgeois society. The only regular source of profit is the surplus product, which is created by the proletariat, but appropriated by the capitalists on the basis of their ownership of the means of production. The surplus product thrown onto the capitalist market, where economic or value relations play the leading role (which is the same thing), first takes the form of surplus value, and in the final form, profit.

The capitalist invests money in money (D) in the production of goods (T), so that, having sold them on the market, he is again turned into money capital, but already more than primary (D1), i.e. to get surplus value - profit. To organize the production of goods, the capitalist must acquire the means of production and labor. In other words, to acquire machine tools, production facilities and raw materials (means of production) on the one hand, and on the other, to pay workers wages. The capital needed to acquire the means of production is called constant capital, and labor is called variable. But surplus value, and therefore profit, creates only extremely variable capital. Permanent capital can only reproduce its own value.

The capitalist himself does not need the manufactured goods, he needs to be sold, and as quickly as possible, i.e. win competition, turn commodity capital into cash and start a new production cycle in order to obtain new surplus value. In order to win the competition, he must reduce the price of the goods. To do this, the capitalist has to increase labor productivity - on the one hand, introduce new, more productive technologies, equipment, and on the other - lower the level of wages. In this way, the value of variable capital relative to constant falls.

The appropriation of surplus product, the reduction of variable capital reduces the solvency of the majority of the population, since workers in the form of wages receive the value of their labor force, which is always always less than the total value of goods produced, and consumer demand drops sharply. In order to artificially expand the scope of limited demand, various forms of credit, discounts, bonuses, etc. are offered. It was the widespread introduction of consumer credit that was the main “innovation” in the economic policy of “Reaganomics” and “Thatcherism”. All this creates imbalance between salaries (which is spent mainly on consumption) and the total value of consumer goods. The consequence of this is the imbalance between supply and demand for goods and subsequent a sharp decline in commodity production, chain bankruptcies and massive unemployment - that is, a crisis.

The paradox of capitalist reality is that the bourgeois economy is not interested in consumer demand, but solvent. Today on the planet as part of another systemic crisis of capitalism the existing productive forces produce goods whose value is four times the total income of the world population. In other words, through the productive forces created by society, one can multiply the standard of living of mankind, but this is impossible in the framework of private property relations. For the system to function, a balance of supply and demand is needed. Under capitalism, such a balance can only be created by destroying the "excesses", from the point of view of economic relations, of productive forces. Historical practice has shown that war is a means of such destruction: the first world crisis - the First world war, the second world crisis - the Second world war. But along with the means of production, productive forces also include labor, i.e. people ... With each new crisis, means of destroying a person become more and more "effective." If humanity does not destroy private property, private property will necessarily destroy humanity.

[TAMBU]

the essence of Marx's “Capital” is the deliverance of society from added value ... which for some means a reduction in labor time, for others a loss of profit. It seems to me...

[Mcar]

Quote: TAMBU

the essence of Marx's “Capital” is the deliverance of society from added value ... which for some means a reduction in labor time, for others a loss of profit. It seems to me...

But the added value also includes the necessary: ​​labor itself and depreciation. If you do not lay at least 10% for depreciation, then machine tools, equipment and in general all means of production will gradually become unusable. The same is the case with labor - if there is no payment for labor to such an extent that the product "labor power" is reproduced, it will also become "unusable."

No, after all, the essence of Marx's Capital is precisely this - the abolition of private property (of the means of production).

PS. To prevent "labor power" from becoming "unusable", it must be reproduced. And this requires conditions. Or the corresponding wages, with the help of which this "labor force" will create these conditions for itself. In 2011, such a salary was supposed to be about 150 thousand rubles / month, now it is more due to inflation. The figure is not from the ceiling, but carefully calculated:
http://www.rpw.ru/ipd/popov_z.html

[TAMBU]

labor itself and depreciation.

not all labor, but only that part of it, which was spent by a person on the production of goods "in excess of the norm" - in excess of the payment that appears in the expense item, i.e. necessary for its existence. It is the part that the capitalist steals. The same prof. Popov cited a calculation according to which, out of a 10-hour working day, a worker works out his wages in about 2 hours. The other 8 are the direct profits of the capitalist. 1 to 5. A worker's wages of 30 tons per month are thus obtained in 150 tons of net profit of the capitalist only at the expense of stolen labor of others.

As I understand it, Capital and the explanations to it of the same Popov ... do not blame me)

[Mcar]

Quote: TAMBU

not all labor, but only that part of it, which was spent by a person on the production of goods "in excess of the norm" - in excess of the payment that appears in the expense item, i.e. necessary for its existence. It is the part that the capitalist steals.
------
As I understand it, Capital and the explanations to it of the same Popov ... do not blame me)

Absolutely right! That is what I had in mind. Same necessary part of the value added.

But the profit of the owner of the means of production is no longer necessary. Consequently, the unnecessary, excessive added value can be eliminated by eliminating private ownership of the means of production.

[TAMBU]

I understood the connection. I understood that these are Lenin's conclusions on Marx's work, and Marx himself only said that "over-standard" labor creates added value and this injustice is the reason for the appearance of such a pleasant thing for capitalists as profit and all subsequent problems of the capitalist world.

[Mr Credo]

This is based on the formula money-goods-money. But what if there is money out of money? Well, the percentage there seems to be money as a commodity. But what about the difference in exchange rates, such as currencies or stocks? What if capital controls the politics of a country? Well, like selling raw or banana. Or through the policy of the country they destroy the economy of other countries, lowering it into the Stone Age, and then, as if providing it with help, receive income. There is no direct competition between firms. Although TNCs of course stupidly extinguish all the little things. In general, I wonder what the concentration of personal capital in a very narrow circle of people will lead to! According to the logic of development and greed, it is necessary to greatly reduce the unnecessary population to a narrow circle of people that is optimal for a comfortable life.

[Mcar]

Quote: Mister Creed

This is based on the formula money-goods-money. But what if there is money out of money? Well, the percentage there seems to be money as a commodity. But what about the difference in exchange rates, such as currencies or stocks?

This is called speculation. This is not a mode of production — neither capitalist nor communist. Just speculation.

Quote: Mister Creed

What if capital controls the politics of a country? Well, like selling raw or banana.

In a capitalist country, it cannot be otherwise. That's right - capital rules the country. How to be So be it.

Quote: Mister Creed

In general, I wonder what the concentration of personal capital in a very narrow circle of people will lead to! According to the logic of development and greed, it is necessary to greatly reduce the unnecessary population to a narrow circle of people that is optimal for a comfortable life.

Up to about 1-10% of those living on the planet.

Under capitalism, the upcoming robotization and automation of production will gradually kill up to 90-99% of the world's population. If a robot can do anything and as much as it wants, then it will gradually replace a person where possible. Not immediately, not tomorrow, but over time. Where it leads? In addition to the fact that people will not have work, there will be no salary, there will be nothing to buy even food.

Under the conditions of communism, the upcoming robotization and automation of production will mean dawn and prosperity for all of humanity. And this is just good if the robot replaces a person in all sorts of routine, not creative activities.

So, if humanity does not destroy private property, private property will certainly destroy humanity.

[Yustet1950]

Capitalism, by its very nature, requires thinking first of all about yourself and taking care of your interests. Everything else is only as needed.

[Nick_R]

And you, apparently, first of all do not think about yourself and your loved ones, but with something else? Share, educate us astray.

[Mr Credo]

When my neighbors knocked out the doors at four in the morning, I almost dropped the perforator on my leg with fear! But I was primarily thinking about myself! And they also thought about themselves! How do we be?

[Vadim237]

A person will always, first of all, think about himself, his family, and then about everyone else.

[Mr Credo]

Oh well! But did not every family member think about me and their relatives?

[Vadim237]

This is the case arising - all people are different. The above is the gold standard.

[Yustet1950]

What do you think is the difference between the Russian Federation and the UAE?

[Vadim237]

In the territory, in the population, in climatic conditions in the fields of activity - the UAE do not give citizenship to strangers. There is no sense in comparing Russia with the UAE, since we have nothing in common with them. Admittedly, they make cool advertising for tourists

[Mr Credo]

How do we have anything to do with them? What about the planet? What about oil and gas?

[Vadim237]

There is no general thing - in terms of state structure, the mentality is different.

[Forever so]

If you look indirectly, then Russia for the world is like a quiet backwater, a spawning ground. And it was precisely the social justice inherent in Russian society and realized by the USSR that provided the WORLD with equilibrium. Killing the USSR, pro-Western puppets destroyed the world spawning ground. Guess for yourself. Pederasty has already engulfed the world and race power. Well, as this sportsman commanded us, in PARADISE.