Capitalism's Fatal Flaw, and the Way Forward: CAPITALISM’S FATAL FLAW – “In a Nutshell”: GLOBAL STRATEGIC HYPOTHESES.

CAPITALISM’S_FATAL_FLAW – “In a Nutshell”:

GLOBAL STRATEGIC HYPOTHESES.

In Summary. Capitalism’s fatal flaw is that the growth of productivity – “the growth of the social forces of production” [Marx]; the growth of the societal self-reproductive force, and thus the growth of the Meta-Darwinian Collective Fitness of the human species [Seldon] – devalues capital, and thus drives down the rate of profit on capital when the capital losses are subtracted from gross profits.

This devaluation turns the wealthiest, most powerful industrial capitalists and banking capitalists against the growth of the productive forces, and, therefore, turns them against the root of all human social progress. It ultimately leads those ruling capitalists to contrive global human population extermination, human population being the heart of the productive forces.

In More Detail. The algebraic causal mechanism of Marx’s “Law of the Tendency of the Rate of Profit to Fall” is given by Marx’s profit rate ratio –

((1/v)/(1/v)) ´ (s’/(c + v)

= ((s’/v)/((c/v) + (v/v)))

= ((s’/v)/((c/v) + 1)).

Productive force growth increases (c/v), whose rise is not as constrained as are increases in (s’/v). With time, and with productive force growth, the ratio’s denominator thus increases more than its numerator increases, thereby causing the rate of profit ratio as a whole to decline in size.

But this algebraic mechanism is not the ‘socio-physical’, ‘praxical’ mechanism that causes the profit rate to fall, in the world outside of the mind.

At first, the growth of machine industry, the growth in value and in physical mass of “fixed capital”, burgeons the profitability of large industrial capitalists, by excluding competition from smaller capitalists who can’t afford the expensive machines, and by the power of machine assistance to human labor, to accelerate output per time-period, and thus to plummet the unit production costs, hence the consumer prices, of that output, by machinery-caused escalation of productivity or “productive force”.

But soon, as the machine-capital portion, hence exposure, of total large industrial machine-capital rises apace, as the main cause of accelerating output, with machine profit escalation hopes driving an also-accelerating progress in machine-design, these machinery-based profitability gains meet the challenge of also-accelerating machinery obsolescence, of ‘techno-depreciation’ of fixed capital, especially in the original geographical core regions of industrial capitalism, where the oldest, “legacy”, machinery fixed capital tends to be concentrated.

As machine industry’s output unit-costs, and that output’s consumer unit-prices, as well as machinery-capital profit rates [due to accelerating ‘techno-depreciations’], commence a long secular fall, it becomes glaringly clear to the original geo-core industrial capitalists, that growth of the social forces of production devalues capital. That growth devalues especially machinery fixed capital, and, via loan defaults, devalues also the bank loans increasingly needed to purchase their large-scale industrial machine-capital investments – needed even by the biggest industrial capitalists.

The resulting premature – “pre-amortization” – losses to the value of the ‘obsoleted’ machine-capital are subtracted from gross profits in the numerator of the profit ROI ratio, for the accounting period in which the devaluations are recognized, and in which the old, ‘obsoleted’ machinery is, e.g., scrapped in favor of the newly-purchased new, replacement machinery-capital, thus lowering net profits and net profit rates for each such accounting period.

The devaluation loss is also subtracted from the denominator of the profit ROI ratio, but that ratio is also pulled down by the value of the new, replacement machinery-capital, added to the profit ROI ratio denominator, and by the additional debt-service expense for the new loan(s) used to purchase the replacement machinery-capital – a new expense, also subtracted from the profit ROI ratio gross profits numerator, further pulling down net profit.

If similar machine obsolescence and scrapping events recur accounting period after accounting period, especially if with increasing frequency, then a secular decline in profit rates will ensue – as it did, during the »1870 to »1890 “Great [Techno-]Deflation”.

Geo-core industrial capitalists and banking capitalists, watch as “upstart” industrial capitalists in the countries of the geographical periphery of the geo-core, starting from scratch with lower labor costs and with the most advanced vintages of industrial machinery, thereby out-competing the geo-core capitalists by the upstarts’ lower prices of their output on the world market, and thereby also driving the ‘techno-depreciation’ of the geo-core capitalists legacy industrial machinery capital, made obsolete by that very world market competition from the “upstarts”. In reaction, the geo-core ruling capitalists become increasingly desperate.

Their waning profitability signals, to the geo-core ruling capitalists, the impending threat of their bankruptcy, and, thus, of their dethronement from great wealth, hence from socio-political power, hence from all of the “perks” of that power. They react to this threat with horrific violence on an unprecedented, global scale. They set up income taxes to make their workers pay for the military dictatorships that they install in the nations of the geo-core’s geographical periphery, armed to suppress and reverse capitalist industrialization in those nations, and to murder other workers who resist in that process. The horrors of the “Third World” are born.

They set up “Central Banks”, like the “Federal Reserve” in the U.S., to exponentially inflate geo-core national currencies, to continually boost profit rates by continually lowering workers’ savings and real wages, to weaken the working class – the majority class – from mounting any effective opposition to these capitalists’ mounting global depredations.

The ‘descendence phase’ of capitalist system-history is born. A century and more of unprecedented violence and social destruction is launched.

The geo-core’s ruling capitalists foment, and secretly fund, a huge diversity of pogroms, each and every one secretly aimed at stopping, then reversing, the growth of the social forces of production, eventually targeting the vast majority of the human race for brutal extermination.

Hear the spokes-prostitutes of the “people are pollution”-ideology-mongering capitalist ruling class call publicly, over and over again, for the extermination of ~95% of the human species, in their own words –

Capitalism's Fatal Flaw, and the Way Forward: 'Rocke-Nazi' Plutocracy Publicly Proclaims Planned Planetary Population Plummeting. GLOBAL STRATEGIC HYPOTHESES. .

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For partially pictographical, ‘poster-ized’ visualizations of many of these Seldonian insights -- specimens of ‘dialectical art’ – as well as dialectically-illustrated books published by the F.E.D. Press, see –