Thursday, June 16, 2016

The First and Second Laws of Capitalism and the "Free Market".

I found on page 406 of Kevin Phillips' book, Wealth and Democracy, a quote from James B. Weaver, a hero of the "War of Northern Aggression," a Greenbacker (backer of fiat money during said war) and a Populist candidate for President of the United States, a quote he said in 1880 about wealth, which revealed his belief in "natural and benificent laws" that would cause wealth to diffuse itself amongst the masses. Nothing can be further from the truth. There are two principal laws of capitalism and the "free market" which operate in every era, and in every country, unless the market is regulated by government.

The First Law of Capitalism (Gresham's Law): bad money drives out good. Just compare the popular entertainments of the 1950s and 1960s to those of 1980s and those of the present day. You'll see this law has been hard at work.

The Second Law of Capitalism (Orlov's Law) a.k.a., Moneybags Logic or The Law of Gravity of Wealth: the wealth of any country naturally attracts to and accumulates itself into vast concentrations favoring the few owning them, at the expense of the many. This is epitomised by the moral of the Parable of the Talents in Matthew 25 and Luke 19: "To those who hath, more will be given, and he will have it in abundance; but to those who hath not, even that which he hath will be taken away from him."

1 comment:

Frederick Froth said...

Please check out these two references on the state of the humanly created world-mummery in "2016"