Daily Archives: May 21, 2019


MMT and Capitalism from a Marxist Standpoint

Heteconomist has the article MMT and Capitalism from a Marxist Standpoint.

A perennial question for Marxists is how to overturn capitalism. Will institutional changes that improve the lot of workers but fall short of ending capitalism immediately help or harm this cause? To the extent that social struggle is a learning-by-doing process, it may be that the securing of small gains can whet the appetite for more significant gains and that institutional reforms of a transformational nature can place revolution on a more secure footing if and when it does occur. But there is also the possibility of complacency in which workers come to tolerate capitalism so long as their own situation is not so dire.

Consider the possibility that we could have an economy where the profit motive is applied to that segment of the economy where it makes sense, and socialism is applied to the rest of the economy. Could such a system persist for a very long time?

Why must the economy evolve to the point where there is only one way to provide goods and services? It is exactly by “a learning-by-doing process” that we can come to the ultimate answer. Since human involved systems are dynamic, the “ultimate” answer will not be a static answer.


Mark Cuban: Ocasio-Cortez, Sanders don’t understand socialism

Faux Business Noise has the article Mark Cuban: Ocasio-Cortez, Sanders don’t understand socialism.

“As someone who’s wealthy, as someone who is looking to benefit the company, every capitalist has got to do the same thing,” he said. “We’ve got to say, look if we if at the top make a little bit less and we help those at the bottom more, capitalism gets stronger. And it’s not socialism it’s stronger and smarter and more, better capitalism.”

There are some things that a society needs that are not well provided by profit driven systems, especially when capitalists in those systems are completely unrestrained. Health care, education, low-income housing, and infrastructure are some examples where the profit motive damages the delivery of these services.

Capitalists are always looking for ways to deliver services at less cost. They are willing to cut quality, cut wages, and use their power to squeeze out more profit from those less powerful than they are. Capitalists nowadays make more short term profits by foregoing long term investment. A society that intends to survive longer than one human generation has to take a much longer view. There are some things that can only be provided (funded) collectively in sufficient quantity and quality to assure the long term survival of the society.

Capitalists want to take advantage of what society provides, but they don’t want to bear the cost of providing it.