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Thread: LCD (lowest common denominator) Capitalism

  1. #1
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    LCD (lowest common denominator) Capitalism

    My thoughts about how Capitalism has been hijacked in the United States:

    Initially, the concept sounded good: A person who could invent / improve something would be rewarded by the free market. There always has been a need for "big" (large capitalization) companies: coal, steel, utilities. But around them existed smaller, independent vendors.

    I'm going to use McDonalads and the fast food industry as an example.

    In the '60s, I used to do mechanical contractor work for my grandfather. Us guys would go to one of many diners for lunch. You could get meatloaf or turkey, mashed potatoes, corn, etc. for a buck or two. Then came McDonalds: frozen hamburgers/fries/soda/non-dairy "shakes."

    I think McDonalds stumbled upon the fact that there was a sizeable percentage of the population that would rather eat crap than decent food. Once they figured this out, the fast food industry was born: Fried, greasy, salty, sweet - was the ticket. From then on the "diners" were hammered out of existence.

    Yet when you think about it - what's competitive about fast food? Frozen patties? Soda that costs 5 cents and sells for $1.50? Shakes that are less than 2 percent dairy?

    The same has happened with Wal-Mart: Cherry pick and sell commodity items really cheap. Run the legitimate stores out of business. If you need an item they don't stock - too bad. You need assistance - too bad.

    The twist is that this has had a profound affect on wages. Once all the independents were run out of business - the replacement jobs were minimum wage at Wal-Mart (retail) and McDonalds (fast food) and so on.

    As more and more people were forced to accept these jobs, the more the demand for cheap stores such as Wal-Mart/McDonalds. By accident they created more demand.

    Jobs were lost to China, India, etc. This drove even more U.S. citizens to buy goods from Least Common Denominator (LCD) stores.

    And finally 20,000,000 illegal aliens hammered down our new LCD form of capitalism.

    I believe we have created an environment where there are too few workers earning a decent living. This accelerates demand for more and more cheap "mega stores" that put legitimate stores out of business, and drive down wages even more.

    If you have ever invested in stocks, it is very similiar to owning a stock that has been purchased on margin. As the margin calls come in, those who sell the stock, drive the price of the stock down further - thus causing even more margin calls, and a collapse of the stock price.
    Last edited by dBrong; 10-19-2009 at 11:10 AM.

  2. #2
    Vulture of The Western World Eric's Avatar
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    Quote Originally Posted by dBrong View Post
    My thoughts about how Capitalism has been Hi-Jacked in the US.

    This is where mega corps / franchises, that pay at or near minimum wage, provide most goods and services

    Capitialism - Initially the concept sounded good - a person who could invent / improve something would be rewarded by the free market.
    There always have been a need for 'big' (large capitialization) companies: coal, steel, utilities. But around them, existed smaller, independent vendors.

    I'm going to use McDonalads and the fast food industry as an example.

    In the 60's I used to do mechanical contractor work for my grandfather. Us guys would go to one of many diners for lunch. You could get meatloaf or turkey, mashed potatoes, corn,... for a buck or two. Then came McDonalds: frozen hamburgers / fries / soda / non-dairy 'shakes'.

    I think McDonalds stumbled upon the fact that there were a sizeable percentage of the population that would rather eat crap than decent food. Once they figured this out - the fast food industry was born: Fried, greasy, salty, sweet - was the ticket. From then on the 'diners' were hammered out of existance. When you think about it - what's competitive about it? Frozen patties? Soda that costs 5 cents, and sells for $1.50? Shakes that are less than 2% dairy?

    The same has happened with Walmart - cherry pick and sell commodity items really cheap. Run the legitimate stores out of business. If you need an item they don't stock - too bad. You need assistance - too bad.

    The twist is that this has had a profound affect on wages. Once all the independents were run out of business - the replacement jobs were min wage at Walmart (retail) / McDonalds (fast food).

    As more and more people were forced to accept these jobs, the more the demand for cheap stores such as Walmart / McDonalds. By accident they created more demand.

    Jobs were lost to China, India, etc, This drove even more US citizens to buy goods from LCD stores.

    And finally 20,000,000 illegal aliens hammered down our new LCD form of capitialism.

    I really believe we have created an environment where there are too few workers earning a decent living. Thus accelerating the demand for more and more cheap 'mega stores', that put legitimate stores out of business, and drive down wages even more.

    If you have ever invested in stocks, it is very similiar to owning a stock that has been purchased on margin. As the margin calls come in, those who sell the stock, drive the price of the stock down further. And thus causing even more margin calls, and a collapse of the stock price.
    Doug,

    This is a superb analysis.

    I'd like to use it on the Main Page as a feature article; ok with you?

  3. #3
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    Sure go right ahead!

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    Vulture of The Western World Eric's Avatar
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    Quote Originally Posted by dBrong View Post
    Sure go right ahead!
    Look for it shortly; going to dive into right now...

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    Vulture of The Western World Eric's Avatar
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    Quote Originally Posted by dBrong View Post
    Sure go right ahead!
    See Main Page lead article!

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