Felix the Cat and Capitalist Competition 2 of 2

Felix the Cat teaches us about the nature of capitalist competition and how changes in the value relations in production can lead to a falling rate of profit and capitalist crisis.

Full text at:
http://kapitalism101.wordpress.com/felix-the-cat-and-capitalist-competition/
Full text on its way...

Category:

Education

Tags:

• capitalist
• cat
• competition
• crisis
• exchange
• falling
• Felix
• labor
• necessary
• of
• profit
• rate
• socially
• the
• time
• value

[hume12345]

brendan, do you have a video on ficticious demand, like what we've seen over the last 8 years. china creates most of the worlds goods, but they're america's creditor. america runs a 610bn trade deficit and 10 trillion national deficit. isn't china actually paying for goods it's sold america by loaning them money?

[brendanmcooney]

I see you've just watched my "What is credit" video. Did that clear up any questions about fictitious value? I have not yet made historically-specific videos about the current crisis put have instead dealt mostly with abstractions.

[TheBigHo111]

Our current system is switching from labor to service oriented work. Relying more on ideas and the mind of the employee. We are leaving the labor intensive industrial work for poor countries. Is this what the workings of raising "S"? Do you think we are doing this to essentially save the economy? In accordance with your vid, you were getting at the fact that capitalism would eventually eat itself, is this correct?

[brendanmcooney]

Capitalist crisis is a way of reestablishing balance in a capitalist society, so while crisis is violent and painful it doesn't always mean the end of capital.

As for service industry. Yes- the switch away from unproductive labor (see "who is exploited?")means that less value is created in the US economy which means our wealth increasingly rests on fictitious capital (see "what is credit?") which is unstable and prone to crisis.

[brendanmcooney]

But this is slightly different than the falling rate of profit (FRP) argument. I hope to tie the FRP to other aspects of crisis in future videos about crisis...

[JRMCNEA]

@TheBigHo111 I know its been three years :x. But the extradition of Labor intensive work is what is causing the woes in our economies. Labor creates value to a product. a product with the least amount of labor cost will(or is supposed to at least) have the lowest cost. The life on labor for a wind mill is much shorter and non constant then the labor in a coal powered plant. The energy made by the wind mill in the long run will be much cheaper then the plant.

[emma5977]

I wish your name was Felix. You look like a Felix. I'm very fond of Felixes. (Thank you for the videos. - You really do get to the nub of things, don't you? Thank you very much xxx)

[monkie8me]

Where is the demand side of the price of a commodity, or product? Products are scarce, which means that consumers are willing to purchase goods for more than the fixed plus the variable cost of that good. Firms are profit maximizers, which means that the price of a product in competition will always equal the marginal revenue equals marginal cost, set at the demand.

[hume12345]

@ brendan it did clear up alot of issues about the concept of credit. I suppose what i really want to know is how would a economy work if there was a commodity that every country needed but one country has a monopoly on it. the monopolizer would in effect be able to create as much credit as it wanted. distort the market with little or no repercussions. I was wondering if any of the books you've read deal with oil and the petrodollar?

[sypher7895]

Fletchforfreedom is coming and he will set you straight that it is the owners of production and the tools of production that creates all wealth, not labor. Of course he is a Libertarian and believes Von Misis is totally correct. Great video that teaches Marxist economics which, in other words, is just the critique of capitalism. Thanks for making these videos.