Wednesday, October 31, 2018

Capitalism, Exploitation, Lending

The Marxist concept of Capitalist Exploitation consists in Profit from the Labor of another.  Thus, Slavery is a special case of such Exploitation.  But, in turn, Profit from the Labor of another can be conceived as a special case of Gain that entails any Loss of another.  Hence, any lending with Interest is also a case of such Exploitation.  Clearly, the victim of Exploitation is acting involuntarily, whether it is the slave under the whip, the laborer who must accept disadvantaged conditions in order to survive, or the borrower in desperate straits.  Accordingly, Marxist Socialism is only a special case of a remedy for Capitalist Exploitation; others include the abolition of Slavery, the illegalization of lending with Interest, and, in general, the elimination of any interaction in which Profit entails Loss.  Likewise, if Smith had focused exclusively on the general aim of national Economic benefit, he might have recognized that individual Profit-seeking is antithetical to such a doctrine.  Indeed, if he had maintained his initial insight of Wealth of Nations--that the basic unit of any Market is the exchange of vital necessities--and formulated as a fundamental normative Market principle the equitable exchange, i. e. in which both parties are satisfied--the recognition that Profit-seeking is antithetical to that principle might have stopped him from proposing it as his fundamental principle instead at the outset.

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