There are many words in banking and economics which vary in meaning depending on a persons knowledge of the subject. Capitalism is one of these words.
The people who believe it to be a good thing are those who immediately benefit from it. Examples of those who immediately benefit from capitalism are ;
Bankers, Private Equity Management (Buyout) Companies, Hedge fund managers, Property Tycoons, Stock Brokers and Bankers.
Unfortunately many of the rest of us also believe capitalism to be a good thing, but this is because the media has misled the public on what capitalism today involves. (See Anti-Crisis posts on Private Equity (Buyouts), Stocks &Shares, Hedge funds ).
Much of the money used to fund capitalism is borrowed from banks. Therefore top bankers will report to the media what is likely to be a biased point of view, which is that ;"Capitalism is funding entrepreneurs so they can make the world a better place for all of us." Well, they would say this. They need the public to deposit money in bank accounts so they can use it to make money and boost bonuses for themselves. The problem here is that bankers have a vested interest here, and need the public to believe they are doing great things with our invested money. Otherwise we might stop giving it to them. All too often the bankers will be re-branded as economics experts by the media and their total lack of expertise (and bias) in real world economics will be forced onto the general public. Because it may be transmitted by a mostly respected media company, the public in general don't question the information given. Unfortunately, I have to mention the United Kingdom's highly respected BBC on this point. It seems that every time the BBC gets an expert point of view on the economy it comes from a so called economics expert but they are from some form of investment business. Due to the nature of a lot of the business (I didn't say all) which is being invested in by these investment businesses, to treat a representative of one of these companies as an expert is much like asking a demolition expert to design and build a palace! The BBC advertises the fact that it does not allow advertising on the channel, yet seems to have no hesitation in allowing representatives from investment businesses, hedge funds promoting their own business. It doesn't matter whether there is a boom or a recession, you know that a representative from an investment company is going to tell you that there are good opportunities for investment. If they said anything other than this they would probably be sacked from the company they represent. So what is the point of them taking up air time and wasting our time?
One reason could be to create a smoke screen over the real capitalism that is being funded by our financial system. The capitalism I am talking about is not the funding of genuine entrepreneurs. In fact these people are no doubt losing out to the kind of businesses which capitalism is now funding. This type of capitalism ;
i) Costs many thousands of jobs throughout the world.
ii) Puts big businesses at risk due to massive debts incurred due to investment.
iii) Home costs become inflated due to investment in homes by property tycoons.
iv) Costs of vital services increase uncontrollably due to the nature of investments.
Combined, the effects of the above increase inflation, decrease our standard of living for most except for the wealthy. Unemployment increase due to the rising costs which need to be covered by employers wages. Taxes increase due to higher welfare costs.
If an economics 'expert' tells you his view on the current economy is that there are very good opportunities for investment in businesses, the chances are that he is encouraging investment into 'business' which is going to make us all worse off.
..The Media....
Until the media takes its responsibility more seriously, the majority of us will be left with the distorted illusion we are being brain washed with. If so we will never see a real end to the current economic mess we are in. We will simply have to be satisfied with some demolition experts wall papering over the cracks in a collapsing economic system.
The people who believe it to be a good thing are those who immediately benefit from it. Examples of those who immediately benefit from capitalism are ;
Bankers, Private Equity Management (Buyout) Companies, Hedge fund managers, Property Tycoons, Stock Brokers and Bankers.
Unfortunately many of the rest of us also believe capitalism to be a good thing, but this is because the media has misled the public on what capitalism today involves. (See Anti-Crisis posts on Private Equity (Buyouts), Stocks &Shares, Hedge funds ).
Much of the money used to fund capitalism is borrowed from banks. Therefore top bankers will report to the media what is likely to be a biased point of view, which is that ;"Capitalism is funding entrepreneurs so they can make the world a better place for all of us." Well, they would say this. They need the public to deposit money in bank accounts so they can use it to make money and boost bonuses for themselves. The problem here is that bankers have a vested interest here, and need the public to believe they are doing great things with our invested money. Otherwise we might stop giving it to them. All too often the bankers will be re-branded as economics experts by the media and their total lack of expertise (and bias) in real world economics will be forced onto the general public. Because it may be transmitted by a mostly respected media company, the public in general don't question the information given. Unfortunately, I have to mention the United Kingdom's highly respected BBC on this point. It seems that every time the BBC gets an expert point of view on the economy it comes from a so called economics expert but they are from some form of investment business. Due to the nature of a lot of the business (I didn't say all) which is being invested in by these investment businesses, to treat a representative of one of these companies as an expert is much like asking a demolition expert to design and build a palace! The BBC advertises the fact that it does not allow advertising on the channel, yet seems to have no hesitation in allowing representatives from investment businesses, hedge funds promoting their own business. It doesn't matter whether there is a boom or a recession, you know that a representative from an investment company is going to tell you that there are good opportunities for investment. If they said anything other than this they would probably be sacked from the company they represent. So what is the point of them taking up air time and wasting our time?
One reason could be to create a smoke screen over the real capitalism that is being funded by our financial system. The capitalism I am talking about is not the funding of genuine entrepreneurs. In fact these people are no doubt losing out to the kind of businesses which capitalism is now funding. This type of capitalism ;
i) Costs many thousands of jobs throughout the world.
ii) Puts big businesses at risk due to massive debts incurred due to investment.
iii) Home costs become inflated due to investment in homes by property tycoons.
iv) Costs of vital services increase uncontrollably due to the nature of investments.
Combined, the effects of the above increase inflation, decrease our standard of living for most except for the wealthy. Unemployment increase due to the rising costs which need to be covered by employers wages. Taxes increase due to higher welfare costs.
If an economics 'expert' tells you his view on the current economy is that there are very good opportunities for investment in businesses, the chances are that he is encouraging investment into 'business' which is going to make us all worse off.
..The Media....
Until the media takes its responsibility more seriously, the majority of us will be left with the distorted illusion we are being brain washed with. If so we will never see a real end to the current economic mess we are in. We will simply have to be satisfied with some demolition experts wall papering over the cracks in a collapsing economic system.
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