Understanding Modern Capitalism.

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Understanding Modern CAPITALISM.

Ronny Julius C Verlet


Modern CAPITALISM.

What is Capitalism? The views on what Capitalism is, have followed the evolution in man’s needs and the ways he tried to satisfy his wishes. So far we witnessed a shift of preoccupation from a

Biological man. Political -Economic man. Philological man of Languages. Ref. Sheridan Alan, Foucault Michel (1980): The Will to Truth.


Modern CAPITALISM.

In each of these modes of development, we can distinguish the usage of MENTAL TOOLS s.a MOTIVES

ACTIONS MANAGEMENT PHYSICAL TOOLS


Modern CAPITALISM according the tools used we categorize: . The BIOLOGICAL human who follows an EVOLUTIONARY path by satisfying his basic needs in line with his instincts for survival , multiplication and species dominance. [ motives].

obeying NORMS. [social, ethical] and by applying the tool of PROCESS Management.[e.g. Seasonal]

He does this by

The physical TOOLS are simple and personally linked. These are the main drivers of a Capitalism being named as

Agrarian Capitalism, Mercantilism and pre-Industrial Capitalism.


Modern CAPITALISM. motives, actions, management Physical Tools. Political - Economic man. Mental Tools are and the

The needs are more than physical requirements, social needs as recognition, control and power appear. The creation of RULES and the Obedience of the rules are the focus actions. [ mass manufacturing, labour as a commodity] The skills of CONFLICT management are critical. [ unions, supply-demand ] The PHYSICAL TOOLS are reproduced and organised for more output. Industrial Capitalism, Globalisation, Keynesianism and Neo-Liberalism are the frames for the Economic theories referring to this phase of economic development.


Modern CAPITALISM.

Philological man of Languages. After the previous needs have been satisfied, priority goes to SIGNIFICATION and fitting all economic elements into SYSTEMS that make sense and can be managed . The dominant skill becomes ADAPTATION. COMMUNICATION is the new Management tool as Meaning needs explanation. The PHYSICAL TOOLS are concentrated in Ownership. The new terms in the economic models are: Industrial Capitalism,

Corporations, Institutions, free CONSUMERISM.

Market, MEDIA and

The key term becomes MEANING.


Modern CAPITALISM

The new era of SIGNIFICATION. Everything in the Capitalist Cycle has to acquire and manage Meaning in support of the Capitalist System. CONSUMPTION is the endless moving meaning.

creativity the

creativity

Media becomes the

creativity creative tool.


Modern CAPITALISM.

Also SIGNIFICATION evolves over time. Out of Signification is born Language. Before the Industrial time, was Signification the primary driver in Society. Middle Ages were dominated by Religion , and it’s Institutes and Ritual obligations. With the Industrial era came valuation and signification of the Material

needs.

After satisfying the material needs come the intellectual and Mental signification under the topics of Knowledge, Mental health and Entertainment .


Modern CAPITALISM

Why became Capitalism so dominant? - other socio-economic systems have flourished over time and places like Asia, the America’s.

- the Signification by Religion can be realised in many ways what created the differences between religions.

- Christianity in the West has filled in Signification in a particular way.

On top of it has the Roman Catholic Church Western Europe dominated before Industrial Age, as a dogmatic dictatorial regime.

Capitalism is a mirror of that regime, that’s why Capitalism got so easily adapted and absorbed by the masses. - Wealth is NOT based on goods; wealth is based on human exchange. -

Jean Baudrillard


Modern CAPITALISM

Christian Religion. GOD Hope Justice Love Salvation

Follow my Commandments. Live a Correct life. You shall serve ONE God ! You are equals in my eyes when you join. Save the souls of the infidel. My promise: eternal life and happiness after death.

Akoi Tetsuo


Modern CAPITALISM

Hope Justice Love Salvation Belonging

Capitalism - Participate or perish. - Subject yourself and I promise: affluence & happiness. - Work hard and you will be rewarded the Paradise of becoming a Capitalist too.


Modern CAPITALISM The Capitalist cycle and its drivers. Money is a key SIGNIFIER

M

Intellect and Entrepreneurship make use of money.

Many elements get Signification in the concept of contains: Money, People, Machines, Customers, Markets, Brands.

...

which creates more Money and Money Markets.

CAPITAL which


Modern CAPITALISM. Capitalism is a cooperation between people as Labourers, as Entrepreneurs, Tools, Machinery, Raw Materials, Intellectual Property, Brands, Markets, Products, and Services.


Modern CAPITALISM

Understanding Capitalism. There is some Magic in the way Money is made in the Capitalist cycle. There is a shift in Modern Capitalism of the Signification of the Capital elements of LABOUR, MONEY and the End PRODUCT / SERVICE.

Socio-Economic shifts as we witness in the current era of Consumerism.

what results in major


Modern CAPITALISM.

What is MONEY ? Money is a medium of exchange, a unit of account, a store of value. [Wikipedia] Money is the Key SIGNIFIER of WEALTH. Wealth reflects the components of Capital what Signifier of exchangeable Wealth.

makes Money a

The Exchange of Wealth becomes in this way a soci socio-economic activity.

ENTREPRENEURSHIP and CREATIVITY are the key skills

in Industrial capitalism.

In the Capitalism of Consumption MONEY BECOMES

PRICE.


Modern CAPITALISM

The Magic. In the Pre-Industrial Capitalism is the valuation of Labour in the end product the sum of individual Labour Inputs. The introduction of automation and mechanisation has increased this value in the end product and decreased the quantity of labour needed.

valuation Labour = 1

valuation Labour > 1


Modern CAPITALISM

Another characteristic since the Industrial Capitalism is the trend to minimize the valuation of the Input: Labour and [Raw] Materials, and maximize the valuation of the output PRODUCT. The valuation of the Labour component in the end Product, means that the Capitalist is employing Labour that can create wealth in the end product. The same is true for the use of raw materials. There is a transcendence of material. The Signification of the material in the end product is higher than the input. The glass bottle Chanel Nr 5 filled with the perfume has a higher appreciation/signification than the glass bottle at the input of the filling machine.


Modern CAPITALISM.

It all becomes a matter of SIGNIFICATION. Example: THE LABORER . As a BIOLOGICAL MAN, he needs a job to survive and to PARTICIPATE in Society [be someone], of course, conform to social norms and he/she has to Execute the processes of participation in Labor and in Society. . As a POLITICAL MAN, he/she has to make choices such as Employer, Family, and Manage the conflicts between job, family, and society. . As a PHILOLOGICAL MAN the labourer needs to become a valued employee who belongs to a Corporation, an Institute, a Brand and he/she should show the Culture of the Organisation and communicate the values throughout personal lifestyle, networks and career planning.

In this way has the Labourer becomes a SIGN which communicates Values .


Modern CAPITALISM.

The Signification of the Labourer .

past

now


Modern CAPITALISM.

It all becomes a matter of SIGNIFICATION.

Example: The RAW MATERIALS. Raw Materials are mentioned on the final product [mostly a legal requirement] with the LABELS of biological, low fat, selected, country of origin [ coffee from XYZ, line fished, etc.]

.

The TOOLS, EQUIPEMENT. Also here the end product is LABELED with tags like Belgian Chocolate, German engineering, ecological processed etc. The equipment is no longer visible in the Capitalist Process: is has been subcontracted to other companies in invisible countries.


Modern CAPITALISM.

It all becomes a matter of SIGNIFICATION.

The END PRODUCT is reduced to a SIGN. To Be is to Consume ! Show me what you buy and I will tell you who you are. You become member of Society by Consumption.

This is CONSUMERISM.


Modern CAPITALISM.

It all becomes a matter of SIGNIFICATION.

MONEY becomes

WEALTH, and the new measure is “ increase “

“exclusive”

PRICE .


Modern CAPITALISM. It all becomes a matter of SIGNIFICATION.

MONEY’S Measure of PRICE . PRICE is Merchandised Money, where everybody, the Capitalist, the Labourer and the Customer can participate any time and at any place. Example is Internet Merchandizing.


Modern CAPITALISM.

It all becomes a matter of SIGNIFICATION. Not everyone can participate in the labour market and in the consumption model. The State also cannot do much. This creates huge discriminations in social participation to wealth creation and inequality.


Modern CAPITALISM

The inequality is spread locally and globally.


Modern CAPITALISM.

What new directions is Capitalism drifting to? We might expect that again the Creativity in the usage of TOOLS ( TECHNOLOGY ) will guide humankind to the next stage of Capitalism. The potential of the Internet, Communication, Micro-Power stations (Solar), B2B, linked to micro-farming, niche specialists, etc might copy the Capitalist formula of wealth generation away from ‘centralizing’ dominance of Macro Capitalism; which of course now already blocks any progress in that direction. A clash between micro and macro, decentralized and centralised Capitalism?


.

Modern CAPITALISM

What new directions is Capitalism drifting to? • The Capitalist system tells the masses:

• The folks excluded want : • The many creative people want to become capitalist as well:

But any promising new start-up company is swallowed by the big conglomorates.


.

Modern CAPITALISM

• In Capitalism, the Control and Management of the States have fallen mainly in the hands of big corporations which in some cases claim their social agenda under the names of affiliated Institutions. • These corporations have no borders, only board meetings. • But.. Ownership becomes a system and as with all system driven by human interactions will the system’s behavior become unpredictable. • The system, on which the creation of States is based, can apparently hold its stance for existence against the arguments of the Capitalistic System. • So far, the claim by Capitalism of being the Great Collective Intellect does not give answers to poverty and the environmental headache.


Modern CAPITALISM.

• But does it matter when Culture has become a consumable where you must participate. You hardly can choose yourself; it’s all done and prepared by the media. Aesthetic values become an exchange value or a speculative value. • Economic values, market values, prices, money, speculation, become an aesthetic value, the source of judgement, of pleasure and aesthetic fascination’. • This degeneration of universal values is illustrated in next magazine poster out of Revolutionart #17.


Modern CAPITALISM.

But does it matter when Love is downgraded to Propaganda only?

Today, Life is no longer a struggle about food or shelter; it is a fight to escape from the tyranny of the Signs. •


Modern CAPITALISM. mm

Fight the right battle !

TO FIGHT THE TYRANNY OF THE SIGN EMPIRE


Modern CAPITALISM This presentation comes from the book SIGNS OF LIFE. LIFE OF SIGNS. By: Ronny Julius C Verlet

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