Thursday, January 12, 2012

The Bain argument of Capitalist Legitimacy

 There is an article in the American Thinker, called " The attacks on Bain", by Steve McCann, where the he discusses Bain Capital, and the legitimate debate about Romney's former company, Bain Capital, and it's role in free market capitalism, being good and necessary.

Quote- "Capitalism is a very successful economic theory; its execution is the issue that has dogged mankind for centuries.   The birth of Marxism and socialism in the nineteenth century came about because of the exploitation of the workers who in many cases were forced to work 60 hours a week for low wages in unsafe conditions."  "Yet that was pure capitalism at work." - unquote.

First point is, pure capitalism at work, as quoted by this article, is not what capitalism is all about. Real Capitalists, do not exploit labor workers, in a slave labor environment, for massive profits and rewards. to enrich themselves with.  Yes, they whole idea of Capitalism is to make a profit, for everyone, but not at the expense of the laborers, aka the workers, in a slave labor environment.. All that type of greedy vulture capitalism did, and still does, is to create social disparity, inequality, inequity, and resentment, within the mass populace of working people. This is also where the advent of the Unions came in,  and where the Socialist Marxists, co-opted them, and used them, or as Karl Marx called them, his "useful idiots".. which they used for their political base and platform, of "workers unite".. or as they say, "comrades unite".. 

That is why, the govt had to put massive new regulations on companies and business practices, into U.S. Federal law, in the 1930's and 40's, especially after the great depression, to make the playing field more equal for the workers, and in effect, to protect the individual worker, so they can have and make a fair wage, with and under safe working conditions, to work with and live on, and support their families.

Industrialists, like JP Morgan, Vanderbuilt, Ford, J D Rockefeller, and so on, created massive profit and wealth for themselves, and helped advance the US Industrial age, and helped make America economically competitive, and best in the world, but they did it on the backs of the workers, and in not pursuing and ensuring their workers were treated fairly, with fair wages and working conditions,  all of that contributed to political social unrest and upheavel, that was to come.

All though I understand where and why they see the Bain Capital's of the world, as providing a purely capitalist ingredient into the free market capitalist system, in their explanation.. but it is incorrect to see this kind of vulture capitalist workings, as actually good and necessary..  They equate this type of company chop shop, selling off of assets, to reap massive profits and rewards to their investors, and or stock holders, to the pure capitalist nature theory of only the strongest survive, and the weakest are devoured..  which may be true in a sense, but one in which the capitalist system and forces, of the law of supply and demand dictates, between the consumer customer, and the business provider, and not from outside entities, like Bain Capital. That is not capitalism as it should be, and is supposed to be.. We create the system and situation, thus we can control it, and shape it to a balanced system with rules for a fair competitive economic capitalist environmental playing field.