And many on the left are deeply indoctrinated as well. You know you are indoctrinated if you believe in the law of supply and demand as relevant to fixing our economy here in New Zealand. For example you are deeply indoctrinated if you believe that to fix the affordable housing crisis you need less restrictions on market supply of housing, which is nothing other than a facist attack on community involvement in local planning decisions – an attack some in the Greens and Labour have done.
And if you are surprised or shocked at this statement because to you demand and supply is simply a description of the real world; then that is a first step to understanding your deep indoctrination.
People believe demand and supply are forces in the real world because the concepts are very close to actual real forces in our natural world. But they are different. For example scarcity is a real force that drives behaviour in the real world; like demand for a product that is scarce. But demand in an economic sense (of demand and supply) is only what is requested for; by money.
So if people have a huge demand for things like, affordable housing or cheaper groceries but they don’t have a lot of money; then they can’t trigger the market forces to supply that real need because the supplier needs to maximise their profits and so the market always aims to drive up prices, and supply to those who can pay top dollar.
And if you say the market doesn’t always maximise profit; but think if the supplier only supplied at a lower price then their competitors will get the best jobs and higher profit margins per job. It’s simply not true that as your prices are lower you will get more work and drive down prices. If you have too much work you put up your prices. The private market simply has all the wrong incentives to actually push prices lower. The market fails at core needs because money is not held by those with the need and therefore there is no driver to supply those needs.
And if you say I’m misrepresenting capitalism as e.g, ‘affordable housing’ is not a definable thing that is supplied directly but a consequence of supply. Then that is a false accusation. I live in the real world where relative concepts like ‘affordable housing’ exist because we see the effects of it. Every capitalist supply has a price and that price is what determines supply for a capitalist. For example affordable cars are marketed as such, but now days we are sold the illusion of affordable cars by loose financing laws which allow prices to be pushed up because they offer loans. This is the primary business model of car dealerships; as predatory lenders. Affordable is a core concept in most people’s lives but it can’t drive price.
And so much more core capitalist logic and values is a rotten door, such as – ‘you know better than government about how to spend your money, ergo no taxes’; and that, ‘personal free choice’ is the best mechanism to determine what is most efficient or best to be produced for society. This is a headless/brainless vision of society which can only be based on short term thinking. It’s a selfish ideal about what ‘I need’ to survive and do well. Its logic is proven false by capitalism’s inability to deal with the climate crisis, or air pollution, or any other systemic problem. Strong countries have strong governments that are well funded.
We can see capitalist logic failing all around us but the failings are constantly being blamed on ‘state’ inefficiency. And we know it is actually capitalism’s failings because capitalism is the dominant supplier of goods and services in NZ. The mantra that government expenditure should not exceed about 30% of GDP is largely adhered to. Capitalism is creating the very problems and the crisis’s that it screams about fixing.
The solutions are obvious; we need to get back to more government supply of core goods and services to keep prices down, and we need money to fund this.
John Maynard Keynes thought government expenditure should be about 70 or 80% of GDP. Because needs like education, health care, housing, industrial production are core needs. Capitalism simply wastes money on frivolous and non core things. Trying to get to Mars when our planet is struggling. Plastic disposable products that are poisoning our environment. Pumping our foods full of fats and sugars so we will stay loyal and addicted customers. Obesity and waste are all the result of capitalism. Don’t waste your time with; ‘what about socialism failed’. The solutions are clear and economic, not political posturing.
Labour and the Greens have been poorly led by an economic vision of assisting capitalism to deliver for a long time. Get back to the roots of NZ being a mixed economy. Make capitalism pay its taxes because that is the purpose of taxation; to tax the points where wealth accumulates and redistribute it. Then the whole economy will work better.
Capitalism is bad until you look at the alternative.
While not perfect millions have been moved out of poverty and given hope by this system
It is in the hands of the people to improve and make fairer.
‘Capitalism is bad until you look at the alternative.’
Yes let us look at socialism as practised in Denmark, Norway, Sweden, Germany, The Netherlands and other countries that provide free health and affordable housing. This is paid for a system of taxation that means the burden is carried fairly.
Let us look at Welfare State Socialism as practised in New Zealand and introduced by Labour governments that believed in ‘State Socialism’.
Even under its reduced remnant today it means an elderly person with, for example, cancer receives free treatment at a public hospital( that this service is not now completely adequate or timely is actually the fault of capitalists in government who refuse a fair taxation system).
Under orthodox capitalism such a person could receive charitable aid, or pay for medical treatment until funds run out or just die.
Anyone who thinks I exaggerate should revisit the period when Jenny Shipley was Minister of Health and Ruth Richardson was Minister of Finance.
1993′ Shipley was named minister of health; in this position she oversaw a number of reforms, including a requirement that hospitals and clinics earn a profit and several measures intended to lower the country’s abortion rate.’ Encyclopedia Britannica.
Only medical professionals and their ethics prevented people with serious illnesses from being abandoned and left to die.
However, if the coalition is re-elected we may yet see this done in the name of capitalism(something for you to look forward to Trevor)
Likewise under orthodox capitalism A man who lost his job, had a sick wife and a family to support would be offered the choice of workhouse charity(where families were often separated) starvation or turning to crime. ‘ No Good deed goes unpunished’. New Zealand today is full of Paula Bennetts, John Keys, Trevors who were ,and still are, supported not by capitalism but socialism and remain hypocrites to the end.
RESTORE STATE SOCIALISM IN AOTEAROA! DESTROY CAPITALISM!