Ok so unprofitable businesses keep going bankrupt, get gobbled up by a bigger corporation until one corporation has a monopoly. That’s the trend we’re seeing right? How many corporations for food are there left now? Nestle, Unilever, Coca Cola, Mondelez and that’s pretty much it right? Well what happens when the tendency of the rate of the profit to fall forces them to no longer produce food. Do we just go extinct?
This (in case of the “butter mountains” and in general) isn’t some politicians deciding which companies to keep, this is the state intervening to save itself. They have to prop up an entire industry that cannot reduce costs any further which means that the price keeps fluctuating around 0 profit which means the entire industry goes extinct. That’s why there is a fixed price on milk, not to save some companies, but to prop up the entire industry. Capitalism will devolve sooner or later into state planning since without this state intervention industries start collapsing.
Could you imagine the ramification of the entire dairy industry dying out? (😸) The economy would go haywire, entire villages depend on their dairy farming, they would revolt it would be pandemonium. This is where capitalism finally leads.
Ok so unprofitable businesses keep going bankrupt, get gobbled up by a bigger corporation until one corporation has a monopoly. That’s the trend we’re seeing right? How many corporations for food are there left now? Nestle, Unilever, Coca Cola, Mondelez and that’s pretty much it right? Well what happens when the tendency of the rate of the profit to fall forces them to no longer produce food. Do we just go extinct?
This (in case of the “butter mountains” and in general) isn’t some politicians deciding which companies to keep, this is the state intervening to save itself. They have to prop up an entire industry that cannot reduce costs any further which means that the price keeps fluctuating around 0 profit which means the entire industry goes extinct. That’s why there is a fixed price on milk, not to save some companies, but to prop up the entire industry. Capitalism will devolve sooner or later into state planning since without this state intervention industries start collapsing.
Could you imagine the ramification of the entire dairy industry dying out? (😸) The economy would go haywire, entire villages depend on their dairy farming, they would revolt it would be pandemonium. This is where capitalism finally leads.