If we stop buying things, what happens to the Capatalist model?

My take on this, is it’s a case of “S*d you Jack” as long as I’m alright, which seems to be the view of Politicians, Banks, and those with shed loads of money, so much so, that the recession don’t affect them. That’s just my opinion, as a minion.;)
Jim.
Lincoln .7

Capitalism is built on profit pure and simple, when that is achieved by efficiently producing goods and services that are wanted or needed it works for all.

Sadly in this country there are far too many cases were private business has been handed essential or monopoly services and then simply hike the prices to ensure the profit.

Show me please efficiency and/or competition in our water, gas, electricity and fuel suppliers, I see only an aim to confuse when looking at the rail companies, how can it be cheaper in some cases to fly than go by train?

Not that long ago investors put money into companies and projects and hoped to profit from the success of the venture, now financiers want to ensure profit without risk, stock markets don’t care about the companies whose shares they trade in, as long as they make a profit from the trade.

Banks and finance companies try to cut out the middle man (manufacturer/producer) and simply trade in money, feeding off each other for profit and allowing the general public to pick up the bill.

I am not some communist or a nationalise everything socialist, but I do believe that private sector should provide the things we want and public sector the things we need.

Isnt capitalism based on the person next to me having more than me, thus making me want more than him? You see this effect everyday on peoples driveways. But, when the base model we all own suffices our needs (using cars here as an example thinking back to the low spec models of 20 years ago) that desire diminishes. So where is the competition?

No, capitalism is based on recognising people want stuff and working to get it to them in the cheapest most efficient manner possible. Those who are successful at that prosper, those who don’t try something different. When mankind is unable to buy things he will resort to barter or theft to obtain what he wants.

Read some history.

http://www.bbc.co.uk/news/world-us-canada-18992243

We are in a recession which is teaching us to be thrifty. If we look at our own lives, garages, lofts, kitchen cupboards, i’m sure we can all find stuff we don’t need, don’t know why we bought it and is just plain wasteful.
But the problem is this. Once our Capatalist society reaches saturation point. When we all decide we have enougth. What then?
Also, no one spending means no one manufacturing. No manuafacturing means no growth. So do we have to create recession to fuel capatalism?

Mankind is naturally acquisitive, just as he is addictive by nature. Take away money and he will still figure out a way to acquire. Flea markets have gone berserk in my area as people shop for the inexpensive things they want.

Capitalism feeds on a natural desire. Communism, no matter how idyllic it would be if it were to actually be implemented as its designers envisioned, is antithetical to mans nature, that’s why it allways fails.

http://www.bbc.co.uk/news/world-us-canada-18992243

We are in a recession which is teaching us to be thrifty. If we look at our own lives, garages, lofts, kitchen cupboards, i’m sure we can all find stuff we don’t need, don’t know why we bought it and is just plain wasteful.
But the problem is this. Once our Capatalist society reaches saturation point. When we all decide we have enougth. What then?
Also, no one spending means no one manufacturing. No manuafacturing means no growth. So do we have to create recession to fuel capatalism?

You are right that our current economy requires growth to function. It is therefore very obviously unsustainable. The material resources of our planet, and the capacity of it’s ecosystems to be exploited, are not infinite.

It is not all doom and gloom though as there are capitalist alternatives to constant growth. These include zero growth economic models. Check out the wikipedia article on the steady state economy, a very interesting idea indeed.

The 2008 banking fiasco left governments with a unique opportunity to change the way that the world does business. Unfortunately the political and corporate elites have been shown to be intractible with their support for each other and the current economic system. As a result I suspect that the global economy will inevitably collapse, leaving all of us to deal with the total chaos that ensues.

Our last spanking good idea of trying to make London the financial capital of the world worked out well didn’t it?

Yes, it did actually! London is one of the top two financial capitals in the world, maybe number one; only New York can possibly compete with London.

Isnt capitalism based on the person next to me having more than me, thus making me want more than him? You see this effect everyday on peoples driveways. But, when the base model we all own suffices our needs (using cars here as an example thinking back to the low spec models of 20 years ago) that desire diminishes. So where is the competition?

Roll on evolution – looking forward to the hunter-gatherer model…

I buy what I need not what I want. I need a mobile phone it is 3 years old but I can make and recieve calls yes it has a touch screen and lots of other gizmos but frankly I have no idea about them,so the phone stays until it breaks. I had to buy a flat screen Tv last year as the ten year old CRT gave up the ghost.
I have just purchased Double glazing for my house because despite having the wood being painted every three years it has had it(23years not bad though)

What gets me is everything I have to purchase comes from China a Communist Country!

I wish more money was ploughed into busineses in this Country instead of starving them of capital to expand just in case they go bust! We have the brains and expertise to make things here if the backing followed. What would that do for this Country apart from create employment and wealth, reduce our trade deficit an perhaps give us a surplus in the long run.

Our last spanking good idea of trying to make London the financial capital of the world worked out well didn’t it?

This post was created using a computer made in China with a mouse and keyboard made there as well and checked by looking at a screen while sitting on an office chair made where? Yes you guessed it.

IMO the Capitalist model is simply shifting to the developing nations

IMO the Capitalist model is simply shifting to the developing nations. BRIC

Sadly though it is the lack of a ‘middle class’ in many of those nations that is profoundly tragic for the majority of people in these emerging nations.

If we stop buying we ‘cave in’ further and deeper into recession.

Hi
If we stop spending, we get what we have now recession.
Maybe it is the start of the end of capitalism and it will fall just like communism in the 80’s.
I find it is both interesting and scary at the moment, as all the world events unfold,it is a long time since i have been this unsure of the future.:eek:
Soon the babyboomers will stop spending as they will have most of what they need.
all the problems that this will bring to the world economy, for about 10 20 yrs in my opinion
cheers
Jerry

I think Adam Smith would be a better starting point if you want to understand the underlying concepts.

I can’t…..I’ve stopped buying books! :diablo:

Read up on John Maynard Keynes 🙂

Sorry I dont know what a Capatalist model is ???? Perhaps I lost something in the spelling ???

The government and industry should try to advance technology as much as possible…

They do…..but it isn’t always for the ‘greater benefit of society’. 😉

What is more important than the amount of stuff that we buy and even more important than how much these things cost is how quickly things depreciate these days…

…a laptop that cost £800 three years ago is worth what now…..£100?

😉 Come on everyone spend a bit here and help a worthy aviation collection whilst doing your bit for the recovery! 😀

There won’t be saturation as things break and need replacing. Technology advances, things improve, you’d like the one with new features because it does the job better/faster/cheaper etc. The government and industry should try to advance technology as much as possible, as fast as possible, opening up new areas for business and giving ever greater benefits to society.

Capitalism is alive and well!

We may all think we’re being ‘thrifty’ and buying less but advertising and other ‘lifestyle’ pressures mean that we’re probably actually buying a lot more than we did ten years ago…

…it is just hard to recognise it as stuff!

How much is your iPhone bill? How many phones do you have; landline, mobile, wife’s mobile, children’s mobile? Computer? Laptop? Tablet? Kindle? Norton internet security? How often do you replace all these things? How much is your broadband? Do you pay to watch TV or hire DVDs? Do you have air-conditioning and a big refrigerator? How much is your electricity bill to power all this? Do you pay for your grocery shopping to be delivered to your house? Do you pay for delivery of other on-line shopping?