China on Monday criticised European Union plans to shield key industries from Chinese competition, warning it would take countermeasures if the measures are adopted. The EU’s proposed “Made in Europe”…
Being honest, it just sounds like western companies being upset that they don’t get to exploit cheap Chinese labor for the benefit of western capitalists.
They want to use China as a sweatshop that they profit from, rather than letting Chinese companies profit themselves.
I don’t really see the issue with it, as a consumer. I’d rather the origin of the product got to keep more of the proceeds rather than letting some western capitalist skim more off the top, especially if that means cheaper goods for consumers.
That’s a really limiting way of seeing things. Not all companies are bad and not all of them want to EXPLOIT cheap labor just because they want to manufacture in China and there are companies (especially in Europe) that go the length of making sure that the products are made fairly (i.e Fairphone) and people are paid a livable wage. I think this will be more and more important as we go into the future and people become slowly more conscious of what they’re buying.
Back when I played Runescape, I used to pay noobs 1gp per feather then sell them again at 3gp per feather. I added nothing of value, and made 2gp profit per feather. All I did was take advantage of new players not knowing the value of feathers.
Definitionally, all profit is exploitation - because it’s the extraction of surplus value. Goods/services have some value. The people who do all of the work to create those goods and services get some cut of the proceeds of the sale, and the rest is profit - the surplus value - which ends up in the hands of the wealthy capitalists who own the means of production (i.e. the factory, hotel, whatever)
I’m not saying that the companies are bad, they’re just actors within a system doing what is in the best interests of those who own the company. It’s the system which is bad, because it’s what makes all of it possible, and rewards bad behavior.
Your idea that profit is simply the extraction of value from those doing the work ignores the role of risk. The factory owner provides the initial capital, buys the machines, secures supply chains, finds the right workers, organizes everything and takes the risk of bankruptcy. If the company fails, the workers lose their jobs, but the owner loses their investment. Therefore profit is the reward for taking on that financial risk and organizing the resources efficiently. Also, some of that profit will need to be reinvested into the factory or new factories.
The factory owner supplies the capital, and hires a factory manager to hire all of the people to buy machines, secure supply chains, find the right workers, organize everything, etc.
They do very little of the work, except in cases of owner-operated businesses which I’d just consider self-employment. In return for this small amount of effort and however much capital investment, they usually take a large salary, dividends, and take advantage of a range of benefits.
There is some degree of risk, of course, but the risk (liability) is limited by the LLC (limited liability company), so the owner cannot lose more than they invest.
Many risks can be hedged against using a number of strategies, such as insurance and diversification.
The rewards, on the other hand, are unlimited and infinite, and if the business isn’t performing as well as is liked, it can be liquidated to reclaim much of the original capital expenditure. Many industries - especially industries such as mentioned in the OP - will be bailed out by the State if they do fail, completely insulating the capital owner from risk.
Meanwhile, the employees have significantly higher risks, for example, being killed or injured as part of an workplace accident, which happens far more often than bankruptcy.
Capitalism is a system of exploitation, where the wealthy get wealthier over time, at the expense of everyone else. It inevitably leads to fascism. It must be dismantled.
That’s a really limiting way of seeing things. Not all companies are bad and not all of them want to EXPLOIT cheap labor just because they want to manufacture in China and there are companies (especially in Europe) that go the length of making sure that the products are made fairly (i.e Fairphone) and people are paid a livable wage. I think this will be more and more important as we go into the future and people become slowly more conscious of what they’re buying.
Back when I played Runescape, I used to pay noobs 1gp per feather then sell them again at 3gp per feather. I added nothing of value, and made 2gp profit per feather. All I did was take advantage of new players not knowing the value of feathers.
Definitionally, all profit is exploitation - because it’s the extraction of surplus value. Goods/services have some value. The people who do all of the work to create those goods and services get some cut of the proceeds of the sale, and the rest is profit - the surplus value - which ends up in the hands of the wealthy capitalists who own the means of production (i.e. the factory, hotel, whatever)
I’m not saying that the companies are bad, they’re just actors within a system doing what is in the best interests of those who own the company. It’s the system which is bad, because it’s what makes all of it possible, and rewards bad behavior.
I hope this makes some sense
Your idea that profit is simply the extraction of value from those doing the work ignores the role of risk. The factory owner provides the initial capital, buys the machines, secures supply chains, finds the right workers, organizes everything and takes the risk of bankruptcy. If the company fails, the workers lose their jobs, but the owner loses their investment. Therefore profit is the reward for taking on that financial risk and organizing the resources efficiently. Also, some of that profit will need to be reinvested into the factory or new factories.
The factory owner supplies the capital, and hires a factory manager to hire all of the people to buy machines, secure supply chains, find the right workers, organize everything, etc.
They do very little of the work, except in cases of owner-operated businesses which I’d just consider self-employment. In return for this small amount of effort and however much capital investment, they usually take a large salary, dividends, and take advantage of a range of benefits.
There is some degree of risk, of course, but the risk (liability) is limited by the LLC (limited liability company), so the owner cannot lose more than they invest.
Many risks can be hedged against using a number of strategies, such as insurance and diversification.
The rewards, on the other hand, are unlimited and infinite, and if the business isn’t performing as well as is liked, it can be liquidated to reclaim much of the original capital expenditure. Many industries - especially industries such as mentioned in the OP - will be bailed out by the State if they do fail, completely insulating the capital owner from risk.
Meanwhile, the employees have significantly higher risks, for example, being killed or injured as part of an workplace accident, which happens far more often than bankruptcy.
Capitalism is a system of exploitation, where the wealthy get wealthier over time, at the expense of everyone else. It inevitably leads to fascism. It must be dismantled.