Society and Capitalism are at a Crossroads.
We have to collectively decide whether to proceed along a path of Upheaval and Revolutionary Change or a more Measured Process of Evolution.
The current World Economic Crisis is presenting us with a series of choices. These will determine which of these two roads humanity travels. My personal preference is for the Road of Measured Evolutionary Change but then I am getting too old for Revolutions !
The basic choice facing us is whether to follow Traditional or Revolutionary Capitalism.
The main difference between Traditional and Revolutionary Capitalism is in the way that Capital is Accumulated.
The Traditional Capitalist Accumulates Capital by Foregoing Consumption. It used to be referred to as 'Deferred Gratification'. This rather disciplined process of accumulation makes the Capitalist cautious when Investing. He/She tends to look for Investments which are likely to produce a Steady, Long Term Return on his/her Investment.
The Revolutionary Capitalist is impatient and not willing to forego anything. Capital is accumulated by Borrowing at Cheap Rates of Interest and using Derivatives to 'Leverage' the Investment. The Revolutionary Capitalist is willing to take High Risks and expects a Quick Return on his/her investment
Revolutionary Capitalism is generally at odds with the existing Political, Cultural and Ethical Norms of Society. It relies on a Rapid Expansion of Technology/Scientific Change and expects Society to Quickly Adapt to these changes. Revolutionary Capitalism does not regard itself as Serving Society, rather it regards Society as being led to the 'Promised Land'. Revolutionary Capitalism is on a Messianic Mission and will not allow 'Society' to get in the way or impede its 'Progress'.
Traditional Capitalism tends to operate in a Linear fashion. It uses 'Negative Feedback' to dampen down violent fluctuations. Revolutionary Capitalism operates in a Non-Linear fashion. It uses Powerful 'Positive Feedback' mechanisms to Amplify Inputs. This can produce Violent and Unpredictable Fluctuations.
In passing, have you noticed that the Popular Media often does not understand what 'Positive Feedback' and 'Negative Feedback' mean? They mistakenly think that the words 'Positive' and 'Negative' refer to the Desirability of the Outcome. This is nonsense and just shows how ignorant the Popular Media can be. They thus describe the recent turmoil as being due to 'Negative Feedback' when the opposite is the case. They are using a Technical Term which is used in Engineering and Cybernetics in a colloquial sense which conveys the opposite meaning!
Thatcher and Reagan were Revolutionary Capitalists. The Current Economic Crisis is the direct result of their World View.
The 'Solution' that will be offered to the Present Turmoil by followers of Thatcher and Reagan will be a Further Round of Rapid Scientific/Technological Change/Expansion. This will be Regardless of any Damage to our Environment, Culture, Social Cohesion or Religion. We will be expected to Subject ourselves to Any Change Demanded regardless of how this affects our Family, Way of Life, Values or Religion.
Revolutionary Capitalism has to Run in order to Stand Still. If it stops Running the Inherent Instability of the System will result in a Collapse.
The Alternative is to Reject this 'Solution' and insist that Capitalism Reverts to its Traditional Role of Serving Society, rather than Attempting to Lead it.
This Alternative requires a Change not only on behalf of Capitalists but also of Governments and People (or 'Consumers' as we are often described as being these days).
Capitalists will have to relearn the Virtues of Thrift, Saving and the Intelligent Assessment of Risk. They will also have to remind themselves that they are an Integral Part of a Wider Society not a Messianic Sect leading us to the 'Promised Land'. Governments will have to Realise that Capitalism is not the 'Goose which Lays the Golden Eggs' for Unlimited Public Spending. Finally People (or Consumers, if that is what you prefer to be described as being) need to Live Simpler Lives. We should not want to live in a Pleasure Dome. There is more to Life than just Shopping. You are meant to Live a Life not assume a 'Life Style'.
Which Road will Humanity Choose to Take? Will People Choose at all or merely Choose not to Choose, thus handing over the Choice to others who are willing to Choose?
Only time will tell. 'You pays your money and you takes your choice'.
