Practical Capitalism

Here's an excerpt from an essay by Eric Andrews that suggests how to adapt to a world characterized by overspending governments, boom and bust economies, deflation and inflation, greed, and shortages.

Link: oftwominds.com Readers Journal-Eric Andrews 12/29/08

Real, useful capitalism requires not a response to the belated price signal but visionary action. And since it is already too late to alter large, long-term issues at the Governmental level—say, mass transit, zero-energy homes, or building the transmission and generation capacity to support wind-fueled electric cars—the best any of us can do is to think ahead to make sure that we ourselves are insulated from unnecessary trouble. That is to say, if you want pickled herring on Friday, would you save in strawberry jam and hope to trade? So if you want a retirement that includes food, energy, and security, wouldn't it make more sense to invest directly in those things? The working of the price signal depends on somebody else thinking ahead and saving for you, anticipating what you may need and making it. But we already know those needs will not be met in the macro sense. So if you want them and want them reliably, shouldn't you buy them now while they're cheap? Things such as a low-energy/low money input house. Things such as ways to provide and produce your own food: a greenhouse, a mushroom log, a garden, a chicken coop. Perhaps become a marginal producer of energy with investment in wind, PV, or whatever other creative solution takes your fancy. As you will have far less to buy later, higher prices and shortages will have less effect on you while the yearly savings of non-buying accrue year after year. You thereby use your retirement savings far more wisely, with far more certainty and control.

Is Capitalism Obsolete?

Scott Adams, creator of Dilbert, says that capitalism is out-of-date due to crooks using technology to steal.

Link: Scott Adams Blog: The End of Capitalism 12/16/2008.

…capitalism had a good run, but it will soon be done. Socialism will be too expensive to maintain as the world economies slow, and communism won't be making a comeback. The economies of the future will be something new.

Capitalism was conceived before the Internet, and before the gears of commerce became computerized. The system could absorb a lot of con artists because they didn't have the ability to steal fast enough to cripple the system. As you know, that has changed. Crooks in expensive suits now have the ability to swindle trillions, collectively, thanks to the efficiency of the system. And idiots in expensive suits can do even more damage.

The economy is now too complicated for even the regulators to know when a con or a huge mistake is happening. The balance of power has swung to the crooks and the market manipulators. Even if we could regulate away these problems, it's already too late. There isn't enough money left to support the planet under the current social systems, at least not when the boomers start retiring and unemployment starts climbing.