In reply to teflonpete:
> (In reply to Timmd)
> [...]
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> Sorry, I don't understand why people need to be unemployed for capitalism to work. Does anyone care to explain?
> I'd have thought that people being employed and having money to spend on products and services is the fundamental requirement for capitalism to work.
I'd care to explain, yes. Hello again. But first, it's important to understand what capitalism is, and then it's important to understand that capitalism works even when people think it isn't working.
So, at the moment there is - apparently - a substantial minority who think that capitalism isn't working, or might, in some nebulous way that they never quite get round to explaining, have 'failed'. Well, here's where it's important to understand what capitalism is...
Capitalism is the dominant economic system that has spread, in the last five hundred years or so, across the entire globe. There is not a single country on this planet that is not capitalist in nature and there is not a single country that - irrespective of the claims of the loony left or the raving right - can be called anything but capitalist. Capitalism has - globally - supplanted feudalism. Just as feudalism supplanted previous economic forms.
Let's pin down a few characteristics of capitalism, then, so we know what we're talking about...
In a capitalist economy the means of production - by which I mean the factories, the mines, the offices, the mineral resources, etc, are owned by a minority of the population. The vast majority of the population own little else than their ability to work. Thus are they forced, by economic necessity, to sell their labour power to the minority. Work for cash is the deal. So the dispossessed majority work for wages and produce commodities for the minority. The minority - the employing or capitalist class - pay those who work for them - the working class - less than value of what they produce and thus realise a profit.
Sometimes. Mostly. And that brings us on to the issue of unemployment...
Capitalism is an economic system that is based on the production of goods and services that are produced with one main objective and that is that they can be sold on a market with a view to realising a profit. Well and good so far, apart from the wage-slavery aspect.
The problem is that the capitalists are all competing against each other for their share of the market. In fact they have to do more than that. They have to attempt to dominate the market if not monopolise it completely. And to do this they have to continually wage war against their competitors, whether they be other individual capitalist organisations or, indeed, other nation-states.
It's really important to grasp the notion that when you have any number of capitalists flooding any given market with any particular commodity that you will eventually reach the stage of overproduction. Quite apart from the declining rate of profit on any given commodity, there comes a point when you really can't justify the production of any more phucking mobile fones that nobody wants to buy anymore and you have - as a capitalist - to start cutting back on production. And then start laying off workers...
Now, that's how capitalism works. Don't take my word for it anymore than you'd take the word of a politician or economist who claims to have come up with a way of escaping the continual boom/slump cycle that characterises the system. Find out for yourself.
The capitalist class would like it if they could guarantee a continual boom. But, as Marx pointed out, they are no more than functionaries of the social force of capital. The trade cycle is what causes unemployment, and you can't have capitalism without that trade cycle.