The classes of capitalism

Policies, Society

The classes of capitalism

Capitalist society is divided into different classes, and the relationships between those classes shape the production of wealth, the dissemination of ideas and the nature of politics.

In 1848, Marx and Engels wrote that “society as a whole is more and more splitting up into two great hostile camps, into two great classes directly facing each other: bourgeoisie and proletariat”. By bourgeoisie they meant the capitalist class, those who made their living by owning capital, which means both factories and other equipment used in the production process, and the money used to invest in production. By proletariat they meant the modern working class—wage-earners who don’t own land or equipment, and who have to make money by selling their time to capitalists.

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Big Debt Plus Rising Interest Rates = Big Danger

Economy, Policies

Big Debt Plus Rising Interest Rates = Big Danger

If there is anything Wall Street banks crave is relief. Primarily relief from the potential for failure and, next, relief from holding much, if any, equity capital. These banks like their capital tiny and their profits huge. Losses should be socialized. After all, we want the ATMs to keep spitting out cash.

The SLR will be allowed to expire at the end of this month before most of us knew what it was—”supplementary leverage ratio.”  When covid hit the fan last March, as the WSJ explains, “The ratio measures capital—funds that banks raise from investors, earn through profits and use to absorb losses—as a percentage of loans and other assets. Without the exclusion, Treasurys and deposits count as assets [not equity].”

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