Capitalists make claims that many are quick to accept but do not bother to check, such as its origins, what a market is, what government is for and what primarily drives an economy. This presentation aims to confront the myths that many capitalists live by and encourage discussions on what an economy really is.

1. The Capitalist Delusion
Joffre Balce
Philorum 19 March 2014

2. Definition of Terms
Capitalism Delusion
• An economic system
where investment in the
ownership and control of
the means of production,
distribution, exchange and
payments is made and
maintained chiefly by vested
interests
– Laissez Faire Capitalism
– Welfare Capitalism
– State Capitalism
 False Idea/Belief System
 Contrary to Evidence, Yet
Upheld
 Due to Mental Illness
 Delusions of Grandeur

3. Myth 1: Adam Smith is my Daddy
• Adam Smith Never Used the Term
• Some capitalists assumed they were the “Invisible Hand”
• As a state of:
– Encyclopedia 1754: being rich
– William Makepiece Thackeray (1854): having ownership of
capital
• As a system:
– Karl Marx: kapitalistisches system
und kapitalistische Produktionsform
2,600x in Das Kapital alone

4. Myth 2: Capitalism IS Free Enterprise
 Free enterprise is an economic system where few restrictions,
minimal competition & other interventions are placed on
private business activities and ownership
 Capitalism is Corporate Mercantilism
 Mercantilism is an economic governance system for the purpose
of augmenting state power at the expense of rival national powers.
 Capitalism sprung from government supported development
of global trade, which sprung from a mercantilistic belief that
trade would strengthen a country militarily and politically.
corporate
human
rights

5. Myth 3: Capitalism IS About Free Markets
• A free market is where the forces of
supply & demand are free of external
or insidious intervention in contrast with a
controlled/regulated or manipulated
market
• In the US, there are 4 lobbyists for every member of
Congress: favours; incentives; contracts; concessions; bail
outs.
• There are “old boy” networks” & revolving doors between
government officialdom & corporate
management/directorship
• Co-opetition: Monopoly is the Ultimate
Aim but Will Settle for an Oligopoly

6. Myth 4: Profit As Primary Motive
 What Drive People?
 When the pursuit of material reward – such as sheer profit –
people tend to cheat, take
shortcuts, compromise quality &
pride of workmanship.
 Rent (a.k.a. “Passive Income”)
 Seeking
 Grabbing
 Capture

7. Myth 5: Tragedy of the Commons
 The commons can & should be private property to
maximise their use & benefit
 There Are No Rights,
 only to your property, if you have any
 Labour becomes a a (Human) Resource
 Licenses, Contracts and Laws Can be Bought, Sold &
Negotiated
 The Result of such a framework:
 Marginalisation
 Alienation
 De Facto Slavery

8. Myth 6: Customer Is King
 Where the Buck Stops: Pass on the burden of taxation
 Perception Management: the Practice of the Ultimate
Disrespect
 There’s a sucker born every minute
 Your ignorance is their power
 Military Warfare is to Geopolitical Territory as
Corporate Warfare is to Consumer Market Territory
 Consumers ARE THE
Milking Cows, the source of
strength but also the crucial
lifeline.
 Capitalists Greatest Fear:
Consumer Boycott!

9. Myth 7: You Owe Us for the Good Stuff
 Communist Manifesto:
 Workers, Not Capitalist Demands
 Achieved through Struggle & Revolution
 From Where Breakthrough Research Comes
 Government
 Academe
 Corporate R&D means:
 Research is Converting
Money to Knowledge & Ideas
 Development is Converting
Knowledge & Ideas Into Money
 More conservative; has to please
investors. But less accountable to
public

10. Myth 9: Everything Has a Price
 Price: the quantity of payment or compensation given by
one party to another in return for goods or services
 Value: Not the Same ...
 the regard that something is held to
deserve; the importance, worth, or
usefulness of something;
 principles or standards of behaviour;
one's judgement of what is important
in life
 “The Best Things in Life
Are Free ... “
Which is why the capitalists
want to privatise them.

11. Myth 8: Capitalists Risk Their Own Money
 Banks & Businesses Leverage
 Financial Institutions Underwrite
& Sell Shares
 How Pension Funds Are Held Hostage
 Even in Charities, Corporations
Claim Tax Breaks on YOUR Donations!
 When the Shit Hits the Fan, Taxpayers Bail Them Out
 Environmental Disasters
 Financial Crises & Panics
 People who risk their own money they worked for are
entrepreneurs. Their labour preceded their capital.

12. Myth 10: The Alternatives Are Worse
 Communism Works: several regencies in Japan & the
Indian State of Kerala
 Movement of Co-ops & Credit Unions
 Raiffeisen, Mondragon, Desjardin, NCBA, Rochdale
 Georgist Economics, however piecemeal & used
currently by police states
 Nordic/Germanic Countries with strong “welfare
policies”

13. What Next?
 Criminalise? Can’t use freedom of association to hinder
another’s in the same name.
 “Chop Their Heads Off?” It will only make them political
economic martyrs & fuel zeal for the movement.
 Engage! Don’t Be Afraid.
 Learn but Discern!
 Including spotting &
un-learning the myths
 What the Capitalists Hate
Most ... Use their
very own weakness
against them

14. How Capitalism Really Works!
 A scene from Glengarry Glen Ross
 http://www.youtube.com/watch?v=y-AXTx4PcKI
 Know the Real Rules by
which they play & they
will stop surprising
or disappointing you.
 Remember, Capitalists Are
NOT Clients.
 If you don’t like it, LEAVE!

15. Happy Myth Busting!