Failing capitalism

The accumulation of capital has a fundamental flaw, in that it relies on plunder and debt, and both have material limitations. To make a profit, capital must get more value out of the market than it puts in, and that difference has to come from somewhere. Profit is paid by government and household debts. But profit can also be seen as a part of production that has not been remunerated and does not have an equivalent demand (except for debt). This surplus production can be exported and exchanged for labour and raw materials. Consumption is sent abroad, and its value comes back as investments.

Piling up debts and plundering the planet are capitalism’s essential ingredients, a mixture that has failed in the past, bringing chaos and confusion. It seems a new failure is occurring, at a slower pace perhaps, but on a more grandiose scale.