Tuesday, September 25, 2018

James Rothenberg — Why Not Socialism?

In May of 1949, the first issue of Monthly Review came off the press, with a circulation of 450 copies. It featured an essay by none other than Albert Einstein titled, “Why Socialism?” Why so famous a scientist speaking to so few people, and then out of his field of expertise?….
Actually, it doesn't take an Einstein to answer the question, Why socialism? But Einstein did anyway, in case some didn't get it yet.

James Rothenberg

1 comment:

Andrew Anderson said...

An economic system such as capitalism, based on profit competition, brings out the worst, predatory instincts. James Rothenberg

A usury-based money system requires profit in order to pay the interest.

Then fine, don't borrow; instead save or issue equity.

EXCEPT government privileges for private credit creation suppress free market interest rates making saving disadvantageous when competing and why share one's equity when one can use it instead to get loans at suppressed interest rates?

Otoh, equity-based finance allows but does not require profit - much less profit taking, i.e. dividends (Which, btw, are ordinarily dumb since the purpose of a common stock company is to consolidate capital for economies of scale, not dissipate it - so dividends should be viewed with suspicion as possibly indicating a looting scheme in operation.)

So let's not complain about profit if we support things such as privileges for the banks that REQUIRE IT.