Why do you think capitalism will fail?

[The Last Conformist]

Anyway, the most likely cause of a Great Depression-style failure of American capitalism is probably a dollar collapse.

 

[Yom]

Capitalism as a whole will probably evolve into something new, as described by Little Raven.

 

[luiz]

As for the automation argument, it should be mentioned that Jean Baptiste Say's theory proved to be right, as opposed to the marxist theory.
Gains in productivity have not costed jobs, but they rather created demand where it didn't exist. And that increase in demand create jobs.

 

[Yom]

As for the automation argument, it should be mentioned that Jean Baptiste Say's theory proved to be right, as opposed to the marxist theory.
Gains in productivity have not costed jobs, but they rather created demand where it didn't exist. And that increase in demand create jobs.

Yes, but far into the future, when automation is extremely prevalent, it could be that most jobs will be those that create public goods, such as research. If this becomes the case, then what will exist is effectively a planned economy.

Either way, Say's law is not exactly right. There can very well be demand without supply. It's just that it will take some time for the supply to exist (for instance, I demand a good that will allow me to travel through air, land, water, and space that is fueled by hydrogen fusion; the supply, however, does not exist).

 

[luiz]

Yes, but far into the future, when automation is extremely prevalent, it could be that most jobs will be those that create public goods, such as research. If this becomes the case, then what will exist is effectively a planned economy.

Either way, Say's law is not exactly right. There can very well be demand without supply. It's just that it will take some time for the supply to exist (for instance, I demand a good that will allow me to travel through air, land, water, and space that is fueled by hydrogen fusion; the supply, however, does not exist).

Well, at least as of now research does not create public goods, with patents and all. Furthermore there will always be need to implement what was discovered with those researchs, as they alone are worthless.

As for Say's law, indeed in the short run there may be a general glut, but in the long run the law proved to be right.

 

[carniflex]

I think it will be because of an average individual (which includes the individual's government) consuming more than what the average individual (and his/her government) produces.

btw, this is a way for any system to fail. not just capitalism. That should be evident, shouldn't it?

If you mean in the world, I disagree:

the average human cannot consume more than what the average human produces.

If you mean in the USA, I also disagree:

the average american is yet consuming more than what the average american is producing.

Moreover, this is the proof that capitalism is working, not failing.

 

[The Last Conformist]

the average human cannot consume more than what the average human produces.

Yes he or she can, if there are stocks to take from.

 

[betazed]

If you mean in the world, I disagree:

the average human cannot consume more than what the average human produces.

yes he/she can. Think non-renewable resources.

If you mean in the USA, I also disagree:

the average american is yet consuming more than what the average american is producing.

yes they are as of now. But this is unsustainable.