Comments by "Kim O\x27Brien" (@kimobrien.) on "Steel town waits for President Trump's promises to come true" video.

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  28. The successful development of capitalism began first in Europe out of the middle class of merchants, artisans and small manufactures. It operates in such a way that it produces its own contradictions. The profit comes out of the production and sale of commodities where labor power is bought for one price and sold for a higher price on the market in the form of the commodity. The division of labor is such that just to produce a pencil requires basic industries including steel, rubber, and coal or oil. The pencil is made of graphite from coal or oil and wood from trees paint which requires a pigment and vehicle usually an oil product and a rubber eraser made from oil or latex. To make and package the pencil requires a machinery powered by electricity. Just to get the electricity to the factory requires a whole host of materials. The capitalist reinvest their profit into areas that produce more profits. However since adding new machinery doesn't always result in higher profit to investment ratios he is driven to drive up the price of paper values instead. This eventually will result in recessions or depressions because the actual law of value will come into play resulting in the disappearance of what started as real capital that was changed into fictitious capital. The profit drive and competition within individual countries results in monopoly capitalism where only a few or a single firm has control of certain markets. Industrial Capital and Finance capital work in such a way that as individual firms sell their products, from one to another, finance capital sees that each are paid usually within 30 days. This is what ties Industrial and Finance Capital together. Another contradiction within the capitalist system is that the capitalist classes of every country seek the foreign markets and labor of other countries. This why trade wars are fought and often lead to real war like WW1 and WW2. A total waste of labor and resources is seen in the vast sums spent for US foreign military bases and by standing armies of capitalist countries the world over. For capitalism to keep going it always requires more cheap labor and new markets. The world is only so big. So while globalization is good as long as it keeps developing the underdeveloped world it too comes to a halt because of the declining rate of return on investment in industrial capital. These processes caused the deep world wide recession of 2008 not a case of bad regulation.
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