Over the years, we have heard from politicians, academics and media pundits telling us all about the differences between economic systems. While certainly it’s somewhat different paths to follow but what always matters is how economics affects and its effects on common folk.
History tells us that royals morphed the ability to exchange products to money by setting prices and the ability to trade within the state from closed to even state sanctioned monopolies. The merchant class rose by cornering the markets and becoming the middle men between producers and consumers by means of distribution as populations increased. Merchants eventually became powerful enough by paying “taxes” to the royal state and in some cases financing small armies to further their agendas. As long as royals benefitted from this system without having to “dirty” their proverbial hands this system went on for centuries.
In turn, money became the mediating factor between consumers and producers. Its value was determined in large part by being portable enough to represent a bushel of grain for example in exchange for a coin. Labor was devalued since individual worth depended on the ability to produce profits. Eventually, the monetary system morphed into paper backed by some metal or some value such as land or even people, better known as the corporation.
Modern times has seen a further development where money became merely paper or contracts backed solely by “trust.” Fiat currency expanded the money supply so that inflation was built into the system and thus labor became less “worthy” than the ability to hold paper representing the profit of those who held the contract.
Each laborer became a cog in the machine of the corporate state which was guaranteed profits from that labor. In turn labor was expected to consume products which enhanced those holding the paper power.
The politicians, academics and media pundits sold this latest morphed fiat system as capitalism. Eventually a system known as communism was touted as the antithesis to capitalism in which labor was supposedly guaranteed an “equal” or adequate share.
All this was essentially a big lie. Labor and common folk were then required to line up behind one system or another, like religion, depending on where one was born and where one died. These two systems were designed to create animosity between states so that the elites could carry on their long tradition of devaluing labor that produced all the “profits.” And that is where we are today.