Capitalism's Fatal Flaw, and the Way Forward: Karl Seldon’s Succinct Formulation Regarding ‘Capitalism’s Fatal Flaw’ and the Phases of Capitalism -- Ascendence Phase [~1500 C.E. to ~ 1900 C.E.] ---> Descendence Phase [ever since]. GLOBAL STRATEGIC HYPOTHESES.

Karl Seldon’s Succinct Formulation Regarding ‘Capitalism’s Fatal Flaw’ and the Phases of Capitalism -- Ascendence Phase [~1500 C.E to ~1900 C.E.] ---> Descendence Phase [ever since]. GLOBAL STRATEGIC HYPOTHESES.

Dear Reader,

It is my pleasure, and my honor, as an Officer of the Foundation Encyclopedia Dialectica [F.E.D.] Office of Public Liaison, to share with you, from time to time, as they are approved for public release by the F.E.D. General Council, key excerpts from the internal writings, and from the internal sayings, of our co-founder, Karl Seldon.

Such a release is that entered below [Some E.D. standard edits have been applied, in the version presented below, to the direct transcript of our co-founder’s discourse].

Earlier entries to this blog which provide evidentiary background for this formulation include --

https://capitalismsfundamentalflaw-wayforward.blogspot.com/2013/09/normal-0-0-1-2344-13363-111-26-16410-11.html

https://capitalismsfundamentalflaw-wayforward.blogspot.com/2013/08/thorstein-veblens-version-of-marxs-law.html

https://capitalismsfundamentalflaw-wayforward.blogspot.com/2013/03/plutocracy-publicly-proclaims-planned.html

ENJOY!

Regards,

Miguel Detonacciones,

Member, Foundation Encyclopedia Dialectica [F.E.D.],

Participant, F.E.D. Special Council for Public Liaison,

Officer, F.E.D. Office of Public Liaison.

GLOBAL STRATEGIC HYPOTHESES: “... The dialectic of capitalism vies in an ‘intra-duality’ of/between capital as “self-expanding value” [Marx], e.g., by reinvestment of profits of enterprise into new industrial capital plant and equipment [“capital formation”/“accumulation”], versus capital as ‘self-contracting value’, e.g., by pre-amortization write off of industrial capital plant and equipment, due to obsolescence depreciation vis-a-vis competitors’ installations, “moral depreciation” [Marx], or ‘technodepreciation’.”

“Such fixed-capital asset write-offs, part of gross losses, arising prior to any full recovery of the value of the obsolescent capital plant and equipment by means of “wear and tear” depreciation charges -- in the later-capitalist context of accelerating technological progress in fixed capital design, and of ‘capital-plant legacy-less’, because newly industrializing, new entrants into world market competition, who may start with the most advanced capital plant and equipment, as well as with lower wages -- can overwhelm gross profits.”

“They can drive a secular fall in the rate of return on capital investment for “core” capital, eventually driving those return-rates deep into negative profit territory, in the absence of extraordinary and catastrophic interventions on the part of the core ruling class faction owning the most ownership-concentrated, most ‘technodepreciation-vulnerable’ industries.”

“In the early stages of the development of global capitalist society, growth of ‘product productivity’, i.e., “growth of the social forces of production” [Marx], and therefore also, tendentially, of humanity’s ‘self-productivity’ -- including the self-expansion of objectified human subjectivity, of objectified labor -- in short, the ‘self-expansion of human socio-mass’, tendentially increases rates of returns on capital.”

“This tendency of rising capital-profitability forms the ‘‘‘ascendence phase’’’ of global capitalist society, a phase dominated by “absolute surplus-value” [Marx] as the primary source of profits on capital.” For a time, “the growth of the social forces of production” adds more new capital than it destroys old capital.”

“The next phase, the ‘‘‘descendence phase’’’ of capitalist humanity, is dominated, instead, by “relative surplus-value” [Marx] as the primary source of profits.”

“This also means that the self-devaluation of competitive capital, of competing industrial plant and equipment capital-value, becomes an increasingly threatening reality for the owners of core concentrated industrial and loan capital. For the working class, on the contrary, it lowers costs of living, and tendentially increases our prosperity, forming democracy-demanding “middle class” working classes world-wide, especially in the ‘‘‘capitalist core’’’ nation-states.”

“Beyond a certain stage, this growth of these “social forces of production” puts the capital “social relation of production” in dire jeopardy. Further growth of this ‘self-reproductive self-force’ of humanity periodically subtracts more old capital-value, by ‘technodepreciation’, than it adds new capital-value, by reinvestment of profits augmented by increased rates of “relative surplus-value”. It ‘‘‘dis-accumulates’’’ more old capital than it accumulates new capital formations. It destroys more capital than it creates.”

“The core ruling class “political” and ideological reaction to this, their [circa 1880 C.E.] “top secret”, “economic” discovery that this is the case [e.g., their Nazi/“Eugenics” genocides; their “Third World” underdevelopment-enforcing, poverty-enforcing military dictatorships, funded and armed from the “First World”; their “People Are Pollution” pseudo-Environmentalist “movements”; their Zero [i.e., negative] Population Growth “movements”; their Zero [i.e. negative] Economic Growth “movements”; their “Small Is Beautiful” ideologies; their “Limits to Growth” ideologies, their “95% global population reduction” demand, etc., etc., ad nauseam] creates the ‘‘‘descendence phase’’’ of the capitalist epoch, with all of its acceleratedly-deepening horrors, which surround us, and permeate our lives, today, and which threaten a new and, this time, likely final, ‘“Dark Age”’ -- the self-annihilation of humanity -- if the working class does not awaken to this ruling-class global pogrom in time.”

“This ‘technodepreciation de-profitability’ “law” of capitalism is still a ruling class “top secret”, withheld from most of humanity even today.”

This ‘‘‘descendence’’’ will end either in the accession, of and by the majority of humanity, to ‘Global Renaissance’; to the next higher possible stage of global human society, the one that we call ‘Political-ECONOMIC DEMOCRACY’, or it will end in ‘‘‘the mutual ruin of the contending classes’’’ [Marx and Engels], i.e., in the ‘self-extinction’ of the human «species». ...”