you know how libs always say knee-jerk "communism only works on paper" despite the opposite being true? i would like to crowdsource help in writing a good retort to that, that could. hopefully plant seeds in someone’s mind.
you know how libs always say knee-jerk "communism only works on paper" despite the opposite being true? i would like to crowdsource help in writing a good retort to that, that could. hopefully plant seeds in someone’s mind.
I can provide two examples of how capitalism in theory fails:
Tendency toward monopoly
Although proponents of capitalism tout the wonders of the free market it is in reality a self-defeating principle.
As enterprises compete in the market some of them will be more successful than others and and they will use this success to buy out or bankrupt the less successful enterprises, over time this leads to concentration of production in ever smaller number of enterprises until entire market is controlled by just one enterprise thus eliminating competition altogether.
Tendency of the rate of profit to fall
As enterprises compete in the market they seek to improve efficiency of production by investing in ever more advanced machinery, by doing this they gain temporary advantage in being able to produce more cheaply and gain more sales, but soon the rest of the competitors will catch up and the advantage dissolves and profits go back to previous levels but the production is now done with more expensive machinery and thus ratio of profit to capital invested decreases, that is the tendency of the rate of profit to fall. Over time the rate of profit falls towards zero, thus making production unprofitable leading to stoppage of investment, hoarding of money and breakdown in production. This proves that capitalism cant continue forever, eventually production for profit will be impossible and capitalism will collapse
Please post corrections if you think there are some errors or you could make it more readable
On monopoly one thing that is rarely discussed is the point that, if a new innovative technology arises, it will displace the old entrenched corporations or make them obsolete, so in the larger picture innovation and the like make sure that no monopoly lasts. However, the thing is that new companies need investing and finance, and what happens in most cases is that the people who own the companies dominating the market, are also the ones that have the money to invest in R&D for new technologies, or buy out these newcomers. In the end even if a given company fails and is overtaken by another, the people who own these companies ultimately remain the same.
ty!!!!