Shit is about to hit the fan

Shit is about to hit the fan

Shit is about to hit the fan

Capitalism, patents and monopolies

Adam Smith is considered as father of modern economy, and by that father of capitalism in general. His most important work, “The Wealth of Nations“, is a cornerstone of modern economy. Many economic theories after emerged after Adam Smith, models were improved, new facts unknown in his time added, but basic pillars of capitalism are still ones made by Adam Smith.

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Kapitalizam, patenti i monopoli

Adam Smit se smatra ocem moderne ekonomije i samim tim i kapitalizma kao sistema privređivanja i ekonomije uopšte. Njegovo glavno delo, The Wealth of Nations”,predstavlja kamen temeljac moderne ekonomije. Mnoge ekonomske teorije su nastale posle Adama Smita, mnoge ideje su unapređene, modeli usavršeni, nove činjenice nepoznate u ono vreme dodate, ali osnovni postulati kapitalizma su još uvek oni isti koje je izneo Adam Smit.

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Clash of classes – doing it wrong

The riots in London have been kind of a reminder what happens when masses lose control, even in the most advanced of societies.

These are turbulent times. Worst recession in decades, probably worst economic situation since Great Depression, and it will only get worse. The bubble that has been blown since end of WWII is about to burst, as debt-based growth and wealth can get you only so far. At one point, everything simply have to collapse, and who is going to be hit hardest? Bankers, speculators and opportunists whose behavior got world to the brink won’t for sure, as someone/something will always bail them out. The biggest effects are of course on lower and middle classes. And as poorest can only share burden so much, middle class’s standard will decrease and they will come closer to the poor than before. Main requirement for healthy society is strong and free middle class. And with crisis of this proportions, that kind of people are first to disappear.

As recession goes on, many people lose their jobs, have to live with significantly lower income, it becomes harder for everyone due to domino effect. And human psychology means that we always must have someone to blame. People get angrier over time, bitter, vindictive. And at this point, one straw is all that takes to break camel’s back. A man shot but police for example, as police usually have strong association with ones in power in our heads.

Masses, usually uneducated, take the streets and violent riots are easy to start. I’ve seen them happen in city where I’m born and live, Belgrade. Although, they had slightly different background. Riots and looting here were sparked by arrests of war criminals, declaration of independence of so called nation and gay parade. Usual groups start them: far-right organizations and hooligans, bloodthirsty and in some animal need to clash with police. However, if riots escalate, common thugs and looters will soon come out of their holes and, as scavengers, take opportunity to get new free Nike sneakers or plasma TV. Same kind of people that are looting in London.

But among, what I believe is minority, of lowlife scum trying to exploit situation, there are masses of misguided people just wanting to express their anger and discontent. There we come to title of this article – doing it wrong. In essence, they are angry at ruling elites, politicians, speculators, corrupt moguls like Rupert Murdoch, but they are expressing anger on the wrong end. The biggest victims of all riots are common people, like you and me. Local businesses, small shopkeepers, owners of torched cars. Many of them put years of hard work to get that little something that might mean life to them. They are middle class. Most of them live quiet life. Most of them are sympathetic and helpful towards lower classes. Yet they are first to get hurt of angry mob. Big businesses have everything ensured, so they won’t loose a sleep over few looted shops. Nor will poor stop being poor after stealing one plasma TV and new jacket. But some of normal people’s lives can be ruined. And of course, taxpayers will have to pay for damages on public property.

And what will come in aftermath? Middle classes will side with upper classes against rioters. But why? Because people rioting didn’t know how to express their anger. They share common enemy with middle classes, yet they turn against them, making any change at upper echelons of society impossible.

This is exactly why poor and uneducated masses are essential for existence of ruling elites. They can live in no matter how poor conditions, they can be unhappy as much as they like, but as long as they turn against middle classes, there won’t be change. There won’t be revolution. Middle classes and inert and slow in revolting against powers, but they are critical mass. Revolutions without middle classes are possible only in societies where middle class is de facto non existent, like in pre-communist Russia. And as long as lower class clash with middle class, and making it wrong target of it’s anger, establishments and system will remain untouched. Divide and conquer strategy is working flawlessly since 753 BCE.

This is why people rioting, looting and torching need to stop. Need to think. Need to find allies. Make friends with middle class, not enemies. Stop violence and turn to peaceful protests. Or they will make things even worse.

These are turbulent times. Turbulent times causes extremes, both left and right. But right is more manipulative and impulsive, usually more violent, while left need more time to consolidate and organize, often when it is too late. Blindly rioting can only increase differences between two poles, and can even increase police state, wherever it is, United Kingdom, United States of America, Syria or Libya. This is why nothing must be done in the affect and violence has to stop before it is too late.

These are turbulent times. Last time around, they ended with psychopath starting and losing war with cost of 50 million lives. Let’s not repeat same mistakes again. Let’s make this planet a better place. Let’s unite for common goal instead of fighting against each other. Let’s make a difference.