an explanation of capitalism
“Capitalism is a system which reproduces itself, at the end of any defined period it needs to have the correct amount of or ratio of resources to perform the process of capitalism again, basically there needs to be resources (including labour) available and enough markets available for the businesses to profit. In the process of creating these conditions it creates a number of massive problems: treating labour only as an input cost means wages must always be reduced as much as possible, increases in capital stock relative to labour to maximise productivity drives unemployment, capitalist competition means environmental destruction and races to the bottom are standard operating procedure, etc. Despite all of these measures being taken as much as possible the search for profit still means that capitalist reproduction cannot be sustained indefinitely and so it has periodic crisis’ which destroys nations, economies, capital and labour in an attempt to get the right ratios back in place.”
