Capitalism stems from a range of financial facilities that enable control of economic activities to accumulate in the hands of the elite segment of society. That those who supply labour fall below the suppliers of capital and financial instruments, is the most characteristic feature of capitalism. (see Banking) It has an inherent degree of corruption, at least in terms of ideology and deceptive promotion of idealistic slogans on ideals that in practice are nearly impossible for most people to attain. Hence its periodic outbursts of scandals at the top hierarchies of capitalist society.
The recently exposed fraud to the tune of over €50 billion euros by the Jew, William Maddof, once the most trusted Wall Street boss, plus the Enron scandal, Merril Lynch’s deceptive practices and the German billionaire banker exposed to be fraudulent are clear examples. The era of slavery in European-dominated America started with the capture of a few Indians in battle for the gold mines of Yaracuy, subsequently exploding in scale to the mass shipment of African slaves who were hunted down and sold into unpaid labour from across the ocean. Europeans with their medieval feudal history lapsed into this depth of unethical practice, carrying with them some African leaders by luring these with the promise of nearly worthless objects. The motive was accumulation of wealth from foreign sources without adequate payment – what is mistakenly termed economic profit.
Slavery, serfdom, under-paid wage-labour and profit have always been the other side of the coin regarded as profit. Socialism holds up low prices, denying the explicit declaration of profit as is done by the merchants in the name of capitalism, but just the same denies the lower classes of their true status by pretending that there are no social classes. Capitalist strength derives from a number of instruments such as the bill of exchange and access to credit limited to the established trading sector of society. Increasing gains by the privileged few at the top accumulate only at the cost of underpaying the masses whose labour produced it.
Capitalist society is marked by the social hierarchies it relies upon to survive. Trader’s formed societies, producers formed guilds, merchants associated as ‘Hansa‘, which functioned as chambers of commerce in various far-flung districts where they dominated the flow (exchange and shipment) of valuable goods and money. Capitalist society is also marked by unwieldy long chain of middlemen who acting as ‘go-between’ for a dubious profit, intervene between producers (as brokers, commission agents, entrepreneurs) and ultimate consumers of goods and primary services. The middleman, as sweat-shops show, makes his money off the backs of his under-paid workers as well as his clients. In the past, he typically ran factories for which he subcontracted units of production.
The industrial revolution made capitalism possible and turned career-making into day-labourer, labour-market and unionism. It restructured trade relations and empowered imperialism. Mercantile capitalism gave way to industrial capitalism which gave way to finance capitalism, concentrating wealth into the hands of a few by making multinationals rake up the product of multiple economies. Capitalism is a social order that weighs crushingly on the state order, sucking bounties wherever sums accumulate. The capitalist as a self-made man often becomes that through questionable ethics. (see Banking, Revolution, Hansa, Venice, Florence, Genoa).
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