Capital governance

does money equal divine right

Within the capital system we use checks and balances to control the participant actors. Theory tells us the market sets the price. The market won’t support a price which is too high. The product doesn’t sell the manufacturer lowers the price or stops producing. The market works.

The market controls price by quality, you manufacturer a product of inferior quality you lose your market you improve quality or stop producing. The market works.

Competition drove quality higher and price down. The market worked.

The market controls price by demand. You add up the three above mentioned drivers you establish demand. The market wants what you offer at the price you offer you have market. The market worked.

Yes demand leads to many other things such as marketing and production pressures etc….. etc……

Here’s where it falls apart. The principles of check and balance were applicable when a trading area was 100 miles and word of mouth could take you out overnight. In fact the principles worked extremely well. Now the market is worldwide and marketing has replaced the check and balance we have relied on so heavily to protect us from bad actors.

The principles worked when competition was a force, you worked you improved you won. Competition is no longer a force. Within the major suppliers of major manufacturing entities competition has been replaced by marketing.

Competition:

There may be several different manufacturers of the same group of products, cars, stereos, furniture, clothing etc…. These entities are controlled by board members which sit on each others boards. Brand A competes with Brand B. Both brands payout to the same persons. Regardless of what you buy I(the board) will make money. Competition no longer works.

Quality:

Products are no longer quality based they are produced based on the concept of market segment/share. The new capitalist system supplies us with every product to fit our price point not our value point, two very different things. Now the check and balance is not quality but instead price. Price may be the most evil tools of all, I’ll write another post about that We now respond to the market it no longer responds to us.

Yes there are exceptions and yes competition works for the local restaurant, Mary makes apple pie better than Irene’s we go to Mary. Ok that works.

Demand: Demand doesn’t exist anymore, WHAT!!! that’s impossible

At one time we applied our personal values to our desire to have a thing. I was brought up to make long distance calls on Sunday(personal values) my children were not. ( don’t wait till Sunday by the way)

We no longer use our personal values as a benchmark. Now we are told what is trendy, fashionable the next must have. I am sure the marketers factor personal values somewhat but they factor manipulation much more. Demand is no longer based on what we need, want or value. Demand is based on what we have been manipulated to think we desire above all else. Demand is no longer a check and balance. Now HGTV tells us our bathroom is out of date if its past 5 years reno’d. Oh my aren’t we failures.

Quality:

Quality is now re-branded as planned obsolescence. Unless you can afford craftsmanship of course. The new system satisfies quality on a price model. Quality is no longer a check and balance.

Ok that’s nice so what.

What made the capitalist system strong. It was several people competing, fighting, vying for their rightful share.

What made the capitalist system weak. Centralized power, lack of competition, inverted money funnel,,,,, doesn’t matter what you buy, I being at the apex of the funnel will get my share of your money, rightful or not. Competition who cares Quality who cares Demand who cares, I make the demand Price who cares, I offer 100% financing

Apply the above to the concept of centralized corporate governance, the one world board, The inverted money, power, domination, control funnel.

Its where we are going right now.

Shawn663