Weekend Wars: Marx vs. Markets
Whenever money is on the table emotions run high. We all claim to back intelligent arguments while (often unconsciously) simply arguing in favor of our wallets. We all have an interest and fight for it vehemently, even if just through words. This behavior is embedded in our genes. It is not surprising.
What comes as a surprise, however, is when the member of a certain team praises the playbook of his rival. I often times define left of center ideas as communist in how they pertain to financial markets and economic practices. Often times the words are said tongue-in-cheek. But when I read a hardened Wall Street veteran praising the work of Karl Marx my tongue actually fell out of my mouth.
UBS' George Mangus favorably quotes Marx in a recent piece on political economy. The commentary is purely analytical and devoid of ideological claims. Though you may be tempted (as am I) to dismiss its validity, I think it is more important to recognize how big of a head of steam these ideas have gotten.
In speaking to a professor friend a few years back, I suggested that a time may come when even the rank and file of the capitalist establishment are regurgitating claims of the Communist Manifesto. He dismissed my fears with a wave of the hand and the following comment:
Markets would never tolerate that much intrusion. Too much wealth eradication of wealth. Panic. Confusion. The Berlin Wall only fell twenty years ago. People still remember how bad of an economic system it was.
Now I know that having an open debate on communism in a Wall Street forum is pretty tough. But when people within the highest levels of the capitalist machinery are regurgitating Marx, isn't it time to think about why this is really happening?
On the next NSFW Eddie and I get into the subject of class warfare and issues of wealth and taxation. I suggest you guys do some thinking about it on your own. I don't want to jump on the bandwagon of fear mongering, but it seems that attitudes towards subjects we had long ago thought overcome are coming back in the oddest of ways.
I really cannot understand how Karl Marx is still considered relevant and how educated and experienced financial industry people like Mr. Mangus don't see the folly of shining a positive light on his work. Maybe I am missing something here...
Anyone care to suggest what that might be?
I'll say this for Karl Marx, he was 100% correct when he said that in a capitalist system the government is merely a tool of the rich.
I don't see how someone praising the work of Karl Marx is anti-capitalist. All Karl Marx said was there will be an inevitable class struggle to end capitalism just as people fought against Monarchy.
Just because you support capitalism you can't see the beauty in someone attempting to get a handle on socioeconomic events?
In the US, we've avoided a class struggle mainly through building credit channels for the consumer. If not for this, capitalism (rather crony capitalism) would have ended a long time ago.
If you think capitalism as an ideology is strong enough to stand the test of time-imagine it becomes stronger and the ideology permeates every facet our society (end social security, medicare, all welfare, flat tax- no taxing brackets, less regulations on big business and wall street, etc)- the end result is more and more income/wealth inequality and less and less consumer spending. Eventually it will be the very rich hoarding wealth and not producing anything for anyone beyond themselves (because who will buy it?)- Eventually people will rebel. they will decide that the rich's wealth means nothing and a class struggle will commence.
Do you argue this possibility? If not, what's the solution?
Yes, I argue you the possibility.
Sure, anything is possible. But I think your conclusion is far-fetched and not factually based, but based on liberal pap that the mass media brainwashes us with.
Make no mistake about it, most regulations don't actually benefit the people they are INTENDED to benefit. For example, minimum wage benefits the lower income class correct? Wrong. It actually makes the low income worse off.
Think about it. Who makes these 'regulations'? You talk about the rich and fail to forget that they are the ones pushing for all these regulations. They were the ones that put the idea of Social Security in our heads. Now our generation is paying for the generations before us based on a flawed system.
Government welfare is a system in which the poor stay poor. It's an anti-incentive system in which the same populations have more incentive to stay poor & take government entitlements than actually propel their families into the middle & upper classes.
All this has been known for quite awhile but we are still doing more of the same. Here's a good video to start:
Yes, I argue you the possibility.
Sure, anything is possible. But I think your conclusion is far-fetched and not factually based, but based on liberal pap that the mass media brainwashes us with.
Make no mistake about it, most regulations don't actually benefit the people they are INTENDED to benefit. For example, minimum wage benefits the lower income class correct? Wrong. It actually makes the low income worse off.
Think about it. Who makes these 'regulations'? You talk about the rich and fail to forget that they are the ones pushing for all these regulations. They were the ones that put the idea of Social Security in our heads. Now our generation is paying for the generations before us based on a flawed system.
Government welfare is a system in which the poor stay poor. It's an anti-incentive system in which the same populations have more incentive to stay poor & take government entitlements than actually propel their families into the middle & upper classes.
All this has been known for quite awhile but we are still doing more of the same. Here's a good video to start:
]
This is an absolute gem of a post.
there really isnt anything wrong with some one exploring different concepts... this is what helps us provoke insightful conversations and progression
Perferendis ad et fugit et pariatur quam. Voluptatem voluptate inventore consequuntur quia rerum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...