(August 2011) – The trend of exploitative capitalism is antagonistic to the needs of ordinary people. Capitalism is based on the utopian wish of a few to control unlimited amounts of wealth. This internal contradiction — unlimited thirst for limited wealth — continues to drive this doomed system toward the abyss of no return.
The recent “debt deal” between US Republicans and Democrats is based on public spending cuts. All tall talks about raising taxes for the rich came to nothing. And the super-rich may take a deep breath, while “The little guy is going to be toast,” as Republican senator Alan Simpson put it.
Partly as a result of the Bush tax cuts of 2001, 2003 and 2005 (shamefully extended by Barack Obama), the taxation of the wealthy, in Obama’s words, ‘is at its lowest level in half a century’. The consequence of such regressive policies is a level of inequality unknown in other developed nations, writes George Monibot in The Guardian.
The snowballing socio-economic disparities generated by the rapidly-widening wage-productivity gap are suicidal for capitalism, as the economist and PROUT thinker Ravi Batra has maintained for many years. Dr. Batra identifies decreasing spending power for the many — because of the increasing centralisation of wealth in the hands of a few — as the main source of capitalism’s present crisis. In his perspective, the debt deal is just another bout of cementing the fundamentals of a total global financial collapse. We are witnessing the first of the last few nails being hammered into capitalism’s coffin.
PROUT promotes its principle of limiting accumulation of wealth as a key factor for a healthy economy. Wealth is limited in supply, and it is therefore essential to limit private ownership of it. Such a rational policy is the only way to increase the general spending power and market growth.
Any shop suffers when its number of spending customers goes down. An economic system that denies the majority an opportunity to earn enough is necessarily bad for business. Exploitative capitalism keeps generating more economic losers than winners and is therefore a self-defeating system.
Copyright PROUT Globe 2011