r/Capitalism 21d ago

What is Capitalism?

What do you think when you read the word or hear someone say, "capitalism"?

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u/No_Assistant8994 21d ago

Just wait until the global debt bubble burst

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u/mcnello 21d ago

You mean the government debt bubble 

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u/No_Assistant8994 20d ago

Private debt in the USA stands at 216% GDP while government debt stands at 123%. Do you ever think where this money comes from?

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u/JewelJones2021 20d ago

Debt is different from poverty.

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u/No_Assistant8994 20d ago

Yes but debt will inevitably cause the largest market crash. Take for instance the 2008 housing crash, caused by debt

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u/mcnello 20d ago

This has the exact opposite correlation that you are inferring. Look at the following countries:

Countries with high debt to gdp:

|| || |Luxembourg|449|

|| || |Sweden|307|

|| || |South Korea|284|

|| || |Norway|279|

Countries with low debt to gdp:

|| || |Turkey|148|

|| || |Czech Republic|144|

|| || |Slovenia|118|

|| || |Greece|117|

High PUBLIC debt to gdp indicates a free market willingness to lend to PRIVATE institutions and is a seal of those company's creditworthiness.

LOW public debt to GDP indicates that companies in those countries are particularly risky and are NOT creditworthy.

I'm an American but have been residing in the Philippines for a couple of years now. The median American has a considerable amount of debt compared to the median Filipino. Americans have mortgages, student loans, etc.

You know what the typical Filipino individual has for debt? Nothing. Literally zero debt. You know why? They have ZERO access to the credit markets. Bank are extremely reluctant to finance mortgages, because property titling is so fucked up in this country. Transferring title is extremely risky (fraudulent title claims, scams, lack of transparency) and can take years. No banks are willing to finance these deals.

Your analysis is exactly opposite of reality. Lenders are eager and willing to put capital in these "high debt to gdp countries" because of (1) stable currencies; (2) Low credit risk; (3) Better rates of return compared to their low debt to gpt counterparts.

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u/No_Assistant8994 20d ago

Literally every market crash stems from defaulted debt . I don’t think you understand we are sleep walking into the biggest market crash. Debt is a good thing in moderation but when every government policy is financed on debt. We come back to how do we sort this throw more money at it bail out more businesses the cycle repeats.

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u/[deleted] 19d ago

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u/No_Assistant8994 18d ago

I personally don’t think it’s a left or right argument. Being from the uk the tories have always borrowed more than labour.

Would this balanced budget allow for deficit in times of emergency?

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u/[deleted] 18d ago

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u/No_Assistant8994 18d ago

Enforcing rapid repayment often leads to austerity and tax hikes in practice, it does more bad than good.

The idea that the right was capitulated by accepting the NHS is nonsense. The NHS was cross-party, and since then, many right-wing policies have been implemented (some of which failed). Sometimes, pragmatic governance is better than ideological.

'Everything is a left or right issue', and there we have it—the cause of polarisation. To my understanding, the countries that score the highest on the human freedom index are centrist; the US believes it's more freer than it is.

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u/[deleted] 18d ago

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u/No_Assistant8994 18d ago

Most ChatGPT I’ve ever seen

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u/[deleted] 18d ago

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u/No_Assistant8994 18d ago

Yes a Luddite after I correctly pointed out it was written by ChatGPT. I literally use it everyday for university work. But If I wanted to have a conversation with ChatGPT I’d simply go onto their website.

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u/[deleted] 18d ago

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u/No_Assistant8994 18d ago

Interest rates that aren’t set by government

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u/[deleted] 18d ago

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u/No_Assistant8994 18d ago

You’ve called it a cherished institution in the UK therefore surely it would be undemocratic to remove it.

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u/[deleted] 18d ago

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u/No_Assistant8994 18d ago

Because that has worked for Americans. You do realise we have private healthcare and it’s a lot cheaper than the US system

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u/[deleted] 18d ago

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u/No_Assistant8994 18d ago

And that’s ultimately the way capitalism tends, toward monopolies that’s control markets and power.

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u/[deleted] 18d ago

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