Friday, November 7, 2008

Growth

Capitalism needs to expand to survive. Capitalist economies were first set up during the Colonial Era. Companies took resources from around the world and made a profit off of them. This ended when governments were established around the globe. However, free market policies turn governments into the next resource to exploit. The intent is to hollow out governments so they only exist to collect taxes and manage contacts. Contract out health care. Create vouchers for private schools instead of having public schools. Hire mercenaries instead of using our own military.

Without continued expansion, capitalism starts collapsing. We all saw it with the stock market this fall. One horrible day spirals into another horrible day, which continues the trend. Capitalism is a positive feedback loop: growth creates more growth, decline creates a further decline. And in nature, there is only one thing that following a positive feedback loop: cancer.

The ultimate problem here is that we live on a finite world with finite resources. Markets can't grow forever. The planet has been exploited. Governments are being exploited. I can only guess at what next the market will go after in its continuing quest to expand.

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