Capitalist Paradigm

[DGS49]

When I hear people talking about the evils of capitalism, unearned profits, and concerns of that type, I like to bring up a simple and easily understood example of basic capitalism: Flipping houses.

Consider:

You have an entrepreneur who wants to buy a house that "in distress." For one reason or another it has fallen into disrepair and the owner wants to get rid of it - quickly. The owner/seller is glad to get rid of the house, though maybe a little bit disappointed that it didn't get top dollar.

The entrepreneur then hires a number of contractors to repair and improve the house, using her own creativity and the advice of real estate professionals to make the additions and changes that will make it most desirable to prospective buyers. These contractors are happy to get the work and to get paid on time by a reliable client.

The entrepreneur then puts the house on the market, generally at a below market price so that it will sell quickly. The buyer is happy to acquire a house that is in perfect condition, with all or most of the features she was looking for.

Win. Win. Win.

The seller is happy, the contractors are happy, the buyer is happy, and the entrepreneur makes a profit so she is happy.

Nobody was taken advantage of. Nobody lost.

The entrepreneur didn't "do" anything. She didn't clean the house, make any repairs, install the new cabinets, or work on the new landscaping.

This is a paradigm of capitalism. The capitalist starts with an idea that will create value for some target person or group. She marshals the resources and the financing to make it happen. She buys the raw materials, hires the workers, and sells the goods to a customer who has decided that among all the possible suppliers, this one is the most advantageous. Nobody loses and the capitalist hopefully makes money. Maybe a lot of it.

The only reason to be resentful is because YOU were too stupid or lazy to do the same thing.

 

[sjay]

Great example of capitalism at it's best.Excellent post that's verified by complete silence of the income redistribution to the welfare class crowd on this forum.

 

[EdwardBaiamonte]

Great example of capitalism at it's best.Excellent post that's verified by complete silence of the income redistribution to the welfare class crowd on this forum.

Yes, capitalism is when people are free to interact in a way that improves their standard of living!

Liberalism assumes many people are too stupid for capitalism and will interact in a way that declines their standrd of living. In protecting and enabling them their population grows and so the society declines eventually to soviet levels.

 

[sjay]

bump

 

[Freemason9]

When I hear people talking about the evils of capitalism, unearned profits, and concerns of that type, I like to bring up a simple and easily understood example of basic capitalism: Flipping houses.

Consider:

You have an entrepreneur who wants to buy a house that "in distress." For one reason or another it has fallen into disrepair and the owner wants to get rid of it - quickly. The owner/seller is glad to get rid of the house, though maybe a little bit disappointed that it didn't get top dollar.

The entrepreneur then hires a number of contractors to repair and improve the house, using her own creativity and the advice of real estate professionals to make the additions and changes that will make it most desirable to prospective buyers. These contractors are happy to get the work and to get paid on time by a reliable client.

The entrepreneur then puts the house on the market, generally at a below market price so that it will sell quickly. The buyer is happy to acquire a house that is in perfect condition, with all or most of the features she was looking for.

Win. Win. Win.

The seller is happy, the contractors are happy, the buyer is happy, and the entrepreneur makes a profit so she is happy.

Nobody was taken advantage of. Nobody lost.

The entrepreneur didn't "do" anything. She didn't clean the house, make any repairs, install the new cabinets, or work on the new landscaping.

This is a paradigm of capitalism. The capitalist starts with an idea that will create value for some target person or group. She marshals the resources and the financing to make it happen. She buys the raw materials, hires the workers, and sells the goods to a customer who has decided that among all the possible suppliers, this one is the most advantageous. Nobody loses and the capitalist hopefully makes money. Maybe a lot of it.

The only reason to be resentful is because YOU were too stupid or lazy to do the same thing.

What you describe, though, isn't some special thing that only happens with capitalism. Market response and labor-added value is a characteristic of most economic systems. Didn't you know that?

Do you actually know about the extremely dangerous downsides of capitalism? Have you ever studied economic systems in detail?

 

[georgephillip]

How the rich become rich:
"The common capitalist mantra that 'anyone can be rich if they work hard enough' is a fallacy.

"There’s only so much room at the top.

"In order to make money, first you have to take it from someone else.

"This can be done through selling things, taxation or any other means. But this means that the rich cannot exist without the poor. Any way you look at it, there’s never going to be equality under capitalism."
Top 10 Disadvantages to Capitalism - Listverse

 

[EdwardBaiamonte]

there’s never going to be equality under capitalism."

that is why capitalism works so well. It is survival of the fittest exactly as evolution and natural law would have it. With capitalism you get growth and survival as China just found out by eliminating 40% of human poverty with capitalism.

If you have survival of the least fit then the entire polity weakens and eventually becomes extinct.
A child can understand evolution but not a liberal. A liberal is anti science because he lacks the IQ to understand scientific reasoning.

 

[EdwardBaiamonte]

Do you actually know about the extremely dangerous downsides of capitalism?

name the most dangerous downside or admit as a typical libcommie to lacking the IQ to defend anything you say.

 

[Desperado]

How the rich become rich:
"The common capitalist mantra that 'anyone can be rich if they work hard enough' is a fallacy.

If that is what you want to believe I can;t stop you. but hard work and perseverance pays off
the only caveat to that is you will never get rich working for someone else.

There’s only so much room at the top.
"In order to make money, first you have to take it from someone else.

A false premise. money is not like a pie, if you take a slice you are not taking from someone else.
Money is more like sand on a beach, there is an infinite amount to go around.

This can be done through selling things, taxation or any other means. But this means that the rich cannot exist without the poor. Any way you look at it, there’s never going to be equality under capitalism."
Top 10 Disadvantages to Capitalism - Listverse

You are right there will never be equality under capitalism, simply because people are not equally motivated, talented or have the same work ethics.

 

[EdwardBaiamonte]

You are right there will never be equality under capitalism, simply because people are not equally motivated, talented or have the same work ethics.

liberals are anti-science. they would love it if everyone was equal wearing the same black pajamas that Mao made everyone wear!!

 

[georgephillip]

How the rich become rich:
"The common capitalist mantra that 'anyone can be rich if they work hard enough' is a fallacy.

If that is what you want to believe I can;t stop you. but hard work and perseverance pays off
the only caveat to that is you will never get rich working for someone else.

There’s only so much room at the top.
"In order to make money, first you have to take it from someone else.

A false premise. money is not like a pie, if you take a slice you are not taking from someone else.
Money is more like sand on a beach, there is an infinite amount to go around.

This can be done through selling things, taxation or any other means. But this means that the rich cannot exist without the poor. Any way you look at it, there’s never going to be equality under capitalism."
Top 10 Disadvantages to Capitalism - Listverse

You are right there will never be equality under capitalism, simply because people are not equally motivated, talented or have the same You work ethics.

You said:
"You are right there will never be equality under capitalism, simply because people are not equally motivated, talented or have the same Youwork ethics."
You're conflating results with resources, another fallacy capitalists often make.
"In a society where resources are not evenly distributed, there is always going to be the wealthy who have an excess of resources. While occasionally these resources are given to the poor, often this excess is wasted. Millions of dollars worth of food is wasted by those who have more than they need, while there are many others who desperately need it."
Top 10 Disadvantages to Capitalism - Listverse

 

[EdwardBaiamonte]

Millions of dollars worth of food is wasted by those who have more than they need, while there are many others who desperately need it."

how idiotic:
1) if it was really wasted it could be sold like anything else. Who buys more than what they need only to throw it away when it could be sold or not purchased in the first place?

2) the issue isn't the trivial amount what is wasted by capitalism but the huge amount that is not produced by libcommieism to the point where 60 million Chinese, for example, slowly starved to death.

Instead of loving Stalin so much did you ever consider Hitler as a hero?

 

[georgephillip]

Millions of dollars worth of food is wasted by those who have more than they need, while there are many others who desperately need it."

how idiotic:
1) if it was really wasted it could be sold like anything else. Who buys more than what they need only to throw it away when it could be sold or not purchased in the first place?

2) the issue isn't the trivial amount what is wasted by capitalism but the huge amount that is not produced by libcommieism to the point where 60 million Chinese, for example, slowly starved to death.

Instead of loving Stalin so much did you ever consider Hitler as a hero?

Since you mention "starvation:"

"Of course, if some have an excess of the resources in society, there are others who do not have enough. In Third World countries, many are starving because they cannot afford to feed themselves, while those in Western countries fatten themselves with an excess of food, and waste the rest of it. There is enough food in the world to feed the entire world population."
Not that good capitalist care.
Top 10 Disadvantages to Capitalism - Listverse

 

[EdwardBaiamonte]

There is enough food in the world to feed the entire world population."

you mean, like in China, there would be enough food for all if liberals would stop preventing the world from switchiing to capitalism. Every starving person on earth can curse liberals for the deadly hell they cause.

 

[jasonnfree]

There is enough food in the world to feed the entire world population."

you mean, like in China, there would be enough food for all if liberals would stop preventing the world from switchiing to capitalism. Every starving person on earth can curse liberals for the deadly hell they cause.

You mean like Mexico after Nafta, where taxpayer subsidized (free stuff) American agriculture products flooded Mexico and drove the little farmers out of business?

 

[DGS49]

The person posting under the name georgephillip has summarized the thinking of the U.S. Democrat party. THEY DO NOT UNDERSTAND THE FACT OF CREATION OF WEALTH.

Wealth is created constantly. If I go out in by back yard and pick up a stick, then carve it into a small figurine that I can sell at a craft show, I have CREATED wealth. I took a worthless piece of biodegradable scrap and converted it into an object worth $20. I didn't take it from someone else. If I buy $100 worth or raw materials and make it into a $200 piece of furniture, I have CREATED $100. This is why the money supply must have the capacity to keep expanding. The pie keeps getting bigger through creation of wealth, so if your piece of it happens to be a smaller portion of the overall pie ("income inequality"), that doesn't mean you are poorer, just that your piece (same size as before) represents a smaller percentage of the whole pie.

Certainly, ,capitalism has downsides, but focusing on the downsides should not be your philosophy of life. The history of immigration in this country is the story of countless people who came to this country penniless, having nothing but a willingness to work a little harder and smarter than those of us who were lucky enough to be born here. Why do you think Black people in Harlem resent the Korean grocers who dot their neighborhoods? Those people started with nothing and will eventually prevail, and their kids will be doctors and scientists and engineers! All through the opportunities created by capitalism.

People who rely on government - government handouts, government schools, government programs - their highest aspiration is to eventually get a government job or work for some non-profit. And they will always be resentful of those to who tool the entrepreneurial path and succeeded.

 

[EdwardBaiamonte]

There is enough food in the world to feed the entire world population."

you mean, like in China, there would be enough food for all if liberals would stop preventing the world from switchiing to capitalism. Every starving person on earth can curse liberals for the deadly hell they cause.

You mean like Mexico after Nafta, where taxpayer subsidized (free stuff) American agriculture products flooded Mexico and drove the little farmers out of business?

Dear, capitalism does not include taxpayer subsidies! Next? or admit as a typical liberal to lacking the IQ for the subject.

 

[EdwardBaiamonte]

You mean like Mexico after Nafta, where taxpayer subsidized (free stuff) American agriculture products flooded Mexico and drove the little farmers out of business?

Dear, capitalism does not include taxpayer subsidies! Next? or admit as a typical liberal to lacking the IQ for the subject.[/QUOTE]

 

[bripat9643]

When I hear people talking about the evils of capitalism, unearned profits, and concerns of that type, I like to bring up a simple and easily understood example of basic capitalism: Flipping houses.

Consider:

You have an entrepreneur who wants to buy a house that "in distress." For one reason or another it has fallen into disrepair and the owner wants to get rid of it - quickly. The owner/seller is glad to get rid of the house, though maybe a little bit disappointed that it didn't get top dollar.

The entrepreneur then hires a number of contractors to repair and improve the house, using her own creativity and the advice of real estate professionals to make the additions and changes that will make it most desirable to prospective buyers. These contractors are happy to get the work and to get paid on time by a reliable client.

The entrepreneur then puts the house on the market, generally at a below market price so that it will sell quickly. The buyer is happy to acquire a house that is in perfect condition, with all or most of the features she was looking for.

Win. Win. Win.

The seller is happy, the contractors are happy, the buyer is happy, and the entrepreneur makes a profit so she is happy.

Nobody was taken advantage of. Nobody lost.

The entrepreneur didn't "do" anything. She didn't clean the house, make any repairs, install the new cabinets, or work on the new landscaping.

This is a paradigm of capitalism. The capitalist starts with an idea that will create value for some target person or group. She marshals the resources and the financing to make it happen. She buys the raw materials, hires the workers, and sells the goods to a customer who has decided that among all the possible suppliers, this one is the most advantageous. Nobody loses and the capitalist hopefully makes money. Maybe a lot of it.

The only reason to be resentful is because YOU were too stupid or lazy to do the same thing.

What you describe, though, isn't some special thing that only happens with capitalism. Market response and labor-added value is a characteristic of most economic systems. Didn't you know that?

Do you actually know about the extremely dangerous downsides of capitalism? Have you ever studied economic systems in detail?

Oh really? How does it happen under socialism where there is no market? The mere mention of a "market response" presumes capitalism, so you have discredited your own response.

There are no "extremely dangerous downsides" of capitalism.

Have you ever studied economic systems in detail?

 

[georgephillip]

The person posting under the name georgephillip has summarized the thinking of the U.S. Democrat party. THEY DO NOT UNDERSTAND THE FACT OF CREATION OF WEALTH.

Wealth is created constantly. If I go out in by back yard and pick up a stick, then carve it into a small figurine that I can sell at a craft show, I have CREATED wealth. I took a worthless piece of biodegradable scrap and converted it into an object worth $20. I didn't take it from someone else. If I buy $100 worth or raw materials and make it into a $200 piece of furniture, I have CREATED $100. This is why the money supply must have the capacity to keep expanding. The pie keeps getting bigger through creation of wealth, so if your piece of it happens to be a smaller portion of the overall pie ("income inequality"), that doesn't mean you are poorer, just that your piece (same size as before) represents a smaller percentage of the whole pie.

Certainly, ,capitalism has downsides, but focusing on the downsides should not be your philosophy of life. The history of immigration in this country is the story of countless people who came to this country penniless, having nothing but a willingness to work a little harder and smarter than those of us who were lucky enough to be born here. Why do you think Black people in Harlem resent the Korean grocers who dot their neighborhoods? Those people started with nothing and will eventually prevail, and their kids will be doctors and scientists and engineers! All through the opportunities created by capitalism.

People who rely on government - government handouts, government schools, government programs - their highest aspiration is to eventually get a government job or work for some non-profit. And they will always be resentful of those to who tool the entrepreneurial path and succeeded.

"People who rely on government - government handouts, government schools, government programs - their highest aspiration is to eventually get a government job or work for some non-profit. And they will always be resentful of those to who tool the entrepreneurial path and succeeded."
Do you believe the entrepreneurial path would exist in the absence of government workers?