A Privately Controlled Market Is The Kiss Of Death
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Politics and Activism

A Privately Controlled Market Is The Kiss Of Death

We need government regulation.

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A Privately Controlled Market Is The Kiss Of Death

I don't understand why people like conservative economic policies. They are the most disastrous things anyone could ask for. A conservative capitalist economy is essentially the equivalent to Putin. Centralizing all the power in the hands of a few private companies without the government having any say in it at all. Let me tell you what Capitalism is all about.

The idea of capitalism in short is investing money in order to make money in the most efficient way possible. In other words, the best way for a company or such an entity to make the most money possible while keeping expenditures at a minimum. And if you think companies won't do that, you're not very intelligent. Here's why.

Say I'm a car manufacturing company. I hire employees to make cars for us to sell. There are several forces at work here.

1. I have to pay my employees to produce these vehicles.

2. There is competition on the market.

3. The cost of maintenance and other expenses.

See this? I have a lot of things to spend money on, but only one source of making any. So I have to be as efficient as possible to make sure that my gain is greater than my loss. In other words, I need to make sure that I make a profit. Making a profit isn't the easiest thing in the world to do. Let's say a 2015 Chevrolet Equinox costs $20,000. So I figure I'm going to make $20,000 if I sell this car. However, another manufacturer is selling the car for only $18,000. If I sell it at the full price, never mind the fact that my competitor lowered the cost by 2000, he is still gonna make $18,000 more than me because consumers will go to his company for the cheaper deal.

So now what do I do? My employees have to get paid and I need to have money for myself so I can continue production so I have to try to undercut my competitor. So I drop the price to $17,000. Now since my prices are lower than his, I get all the money. Fantastic.

But this situation won't always remain this way. People are going to continue finding ways to undercut their competitors. How do they do this?

1. Use of technology as opposed to manual labor

2. Lay off workers

What does this mean? Well think of this. I've been using manual labor to create my vehicles right? So my employees have to work to create a certain amount of money for me the company owner. Therefore they have some value to them. Without them, my business would go under so I am obligated to pay them based on their value. But now, a new piece of technology has been created which significantly reduces the amount of manual labor required to produce the vehicle. So what do I the company owner do? I invest in it. Why? Because the less money I have to spend in the long run, the better off I will be.

So now I've bought the new technology. What happens now? I don't have to pay my workers as much. Why? Because they are not required to do as much manual labor to produce vehicles. Therefore their value has decreased and I can pay them less money. As a result, I can still sell that Equinox for $17,000 and make more money than I did before because I'm spending less money on my workers. Even if my competitors try to undercut me, I can sustain a continuous battle with them because my way of production is more efficient than theirs. They will give before I do. Meanwhile the workers are being laid off.

Well they can just take them to the union right? Not in a conservative economy. Everything would become privatized and the government would have no power to intervene. The government's job in this particular circumstance is to make sure that companies do not abuse their workers for the sake of making more money. And companies will find every legal (or illegal) method of doing so. A conservative economy would just make it infinitely easier for them to do so. It doesn't create more jobs. It creates more profit for the company. Republicans lie about this all the time. Also, with a smaller tax margin, they can increase their profit margin infinitely and their expected contribution wouldn't scale to meet it. Remember, the market forces control companies. Not the little guys. Republicans may sell that to you, but they lie and I just gave you a clear example as to how this happens.

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This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
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