Part 4 Booms and busts punctuate the history of capitalism; it is a systemic problem.

Part 4 Booms and busts punctuate the history of capitalism; it is a systemic problem.

Remember General Motors, producer of automobiles? Over the last thirty years, General Motors created a subsidiary called GMAC, General Motors Acceptance Corporation. It is a bank. It lends money. It began by lending money to people to buy cars because their wages couldn’t pay for them. Then GMAC discovered they could make more money off the interest of the loan than they could make a profit from the car. General Motors became a bank,  much more interested in being a bank than being a car manufacturer. They branched out, they became a general lender and went into the mortgage business. 

If we become a nation of exploding profitably on the one side, and a desperately exhausted population wanting and needing and measuring its self-worth regarding rising consumption, we have a dysfunctional combination. 

People could not pay the money back. 

Booms and busts punctuate the history of capitalism; it is a systemic problem.

The lunacy of capitalism has two sides:

One is the short-sightedness of the business and banking community that has a bottom line of profit;

The other is the wage-worker who falls for the exploitation and manipulation

Views: 70

Comment

You need to be a member of Atheist Nexus to add comments!

Join Atheist Nexus

Comment by tom sarbeck on November 23, 2016 at 12:35am
Yep.

For more than 200 years politicians have used taxpayers' money to bail out the people who gave us the busts.

A form of natural selection is clearly taking place.

I reckon Americans had better start paying attention to money in politics.

line

Update Your Membership :

Membership

line

line

Nexus on Social Media:

line

© 2017   Atheist Nexus. All rights reserved. Admin: Richard Haynes.   Powered by

Badges  |  Report an Issue  |  Terms of Service