the history of all hitherto existing society is the history of class struggles

If there's no class war then who's paying for all the propaganda?

On the economic note, the video did bring up one question I have always had trouble reconciling. Jobs are lost because they have gone overseas and conservatives often talk about bringing these jobs back to America. I totally agree and often I will shell out bigger bucks for the products that are made in the USA. That being said though, conservatives are also usually for less regulation on the free market. However it is the free market that has allowed the jobs to be sent overseas. How can we be on the same side of those two issues when they seem to conflict?

People must remember, pure capitalism is a situation where there is no government policies at all.  Hence, if free market forces causes domestic industries to collapse since they could not globally compete due to higher wages, product/service quality, etc., people should just accept the situation and look for other business opportunities that can afford some other comparative advantage, if possible.  When a nation decides to implement tariffs, foreign labor restrictions, or protectionist policies; that nation is no longer capitalistic, but socialistic in its approach to protect the workers in their borders.  Consequently, in light of this paradox, people should be very careful in their blind support of capitalism, since the loss of many of America's jobs to foreign nations is capitalism working PERFECTLY.  Whenever any politician talks of bringing jobs back to America, they are liars because they represent the wealthy business owners and especially their decisions to offshore American jobs.

ISN'T PURE CAPITALISM WONDERFUL FOR AMERICAN WORKERS?

Kuleana

For those who might be wondering, I'm not a die hard believer of any of the -isms due to their collective contradictions detrimental to a harmonious society.

The Nation's international trade deficit in goods and services increased to $43.8 billion in June from $40.9 billion in May (revised), as exports decreased and imports increased. ( August 5, 2015)

Jobs going overseas is not a policy decision by a party, nor an effect of capitalism. 

I have to disagree.  If I own a company and I can make larger profits by utilizing cheap Chinese labor, pure capitalism theory dictates, I will follow the best interest of my stockholders and send my labor requirements to China to reap the highest profits I can.


It's a global market now, and there are countries WITHOUT unions, WITHOUT minimum wage laws, and WITHOUT federal safety regulations.  it's almost impossible for a US manufacturer to compete with foreign companies on a price basis. 

Its not capitalism's problem that the US can't compete in today's global market.  The fact there are nations without any government regulations at all is more evidence of their respective countries being true to the tenets of pure capitalism.


The differentiator used to be the quality of US goods.  Now, most US goods contain foreign-made components, making the difference minimal.  One of the best made products are Apple computers.  Made in China.

Capitalism at work.


NAFTA made US markets open to foreign goods, but US goods are still limited in foreign markets, partly due to pricing.  Hence the trade deficit.

Not the fault of pure capitalism.  All Americans need to realize that capitalism is a double-edged sword.  Just because tough times have fallen on American workers is not capitalism's fault.  Everyone needs to stop complaining and start developing industries that can lead to a comparative advantage so America can once again be a player on the World Market.  If that is not possible, then the nation may need to start looking at other economic ideologies...

Kuleana

Its not capitalism's problem that the US can't compete in today's global market.

I never said capitalism was the reason the US can't compete globally.

The  US Government has mandated safety, labor, and taxation that drive up the costs of having businesses based on our soil.  Meanwhile we open our border to allow free trade with countries that do nothing close to what our government has done to improve workers' lives.

If the US used tariffs properly, we would raise tariffs on countries that do not support a policy of decent work environments and lower or remove the tariffs for those that do.  Want to sell in our market?  Implement similar policies for workers that we have in place.

The tariffs would offset the cheap prices some countries with poor labor conditions charge, and equalize the prices of goods coming from countries that do support improved workers' conditions.  Maybe then we could also compete again in our own US market with US workers!

I agree with your line of thinking, but this is not currently possible because the US is a member of the WTO.  Even if not for the WTO, American consumers will loose because the higher production costs would just be past on to them.  Furthermore, even with tariffs creating comparative prices, there is no guarantee that the American consumers will want to buy domestic products.  For example, Toyota would still dominate the US Auto industry even if some of their cars were not built in America.

Kuleana

there is no guarantee that the American consumers will want to buy domestic products.

There are no guarantees in business.  That's why it's called "taking a risk". 

If the business climate creates a fair and even playing field, there doesn't need to be any guarantees.  The market will take care of the rest.

But this no guarantee situation is the way it is now.  The World Market has necessitated American businesses to follow their self-interest to offshore jobs to increase their profits.  Foreign countries followed their own self-interest as dictated by the World Market and made the conscious decision to compete with American products with their cheap labor.  It is just this time, the American workers, but not American businesses that have the short end of the stick.

Kuleana

Well, that's close.  When the American worker is out of work, it creates a burden on our welfare system.

It also reduces the amount of income circulating within our economy.  Out-of-work Americans won't be able to afford as many American goods regardless of how cheaply they are produced using overseas labor.

It's a global market now, and there are countries WITHOUT unions, WITHOUT minimum wage laws, and WITHOUT federal safety regulations.  it's almost impossible for a US manufacturer to compete with foreign companies on a price basis.