Tweets - July 26th - Capitalism

This is precisely why capitalism requires a pool of unemployed out-of-workers to pull from. If there aren't people out of work, then you must pull people from other employers by enticing them with hiring wages.

https://twitter.com/blckculturenews/status/1286472667240050696

If McDonald's begins to lack workers and needs to pull those people back, they'll need to up their salaries. In order to up folks salaries, they have to charge more for items (a $2 loaf of bread now costs $6).

Capitalism cannot thrive on perpetual salary wars - it would fluctuate and collapse the economy quickly - so it must thrive on poverty and oppression instead (which so leads to violence, slums, ghettos, and weaponized police).

To ensure there is always a pool of unemployed out-of-workers to pull from, we have what is known as an "ideal rate of unemployment", which requires (ideally) 3 to 5% of the population to live below the poverty line and be actively looking for full-time work.

This 3 to 5% does not account for people who have given up looking for work - as we know, people barely making ends meet and the homeless account for more than 3% of the population.

The Federal Reserve (in the US) is responsible for managing the supply of money and lending to banks.

The Federal Reserve is also responsible for stimulating the economy by ensuring that "ideal rate of unemployment" never rises or drops below ~5% (so that pulling employees from McDonald's is only a rare occurrence and not the norm).

They do this by hiking up the interest rates of their loans (to banks), and by raising the federal funds rate (the interest rate at which banks lend to one another), when they need to ensure more people are out of work and rely on welfare.

Higher interest rates ensure that less money is requested (by banks, businesses, and consumers - houses, cars, personal businesses, etc).

On the opposite end, when the unemployment rate is too high, the Federal Reserve drops interest rates so that more banks, businesses, and consumers request more money (which leads to higher spending and more people employed and paid).

In March, the Federal Reserve dropped the fed funds rate to 0% due to the pandemic. Right now, I believe it stands at about 0.25%.

Therefore, according to the laws of Capitalism the Unjust, the Unmerciful, there can never be full-employment. This means that the police, violence, poverty, and laws designed to discourage rather than uplift will always be with us.