You invest 30% of your capital in someone's store; he has 100% of his capital in this factory, and expects a 10% return. This return is made. Now you have 103%; he has 110%. He now has more than you to invest in new projects; thus, he will receive larger amounts per percentage, and, assuming that you are both equally affected by your state's economy, he will always be richer than you. You can both win or lose on your new investments, but given a universal trend of rise and fall, your 103% is as likely to rise as his 110%; he will simply always have more.
This is why capitalism has to go.
But then you decide to use your 103% and invest it in a store of your own, requiring the 100% you originally had and you save 3% for emergencies. But the other person can now invest 107% and still have the same 3% as you. He does so, in order to operate at a loss so his goods can be cheaper than yours until his surplus runs out. Mathematically, your 100% can't outlast his 104% (nevermind the cash you'd have to spend on initial publicity, because you're already in a negative position against a currently-existing store), and you go out of business. Selling what you have left, you might get about 50% of what you had back (if you're lucky), and now he can raise his prices again. You have 53% now; the other fellow has 110% again.
This is why capitalism has to go.
But you both have your savings in a bank. They have a 2%/year interest rate. If you have 53% and he has 110%, then by adjustment, you have 48% of his 100%, so you have $48,000 while he has $100,000. Because of the interest, you get 960$ this year, but he gets $2,000, because his 2% is a higher value. And next year, it'll be the same: even if you both save all of your money, his interest outweighs your interest, so not only will he stay richer than you, he'll get even farther above you.
This is why capitalism has to go.
Then another person comes along, and she wants to start a store. You don't have enough capital, so you're working for the first guy to stay alive. So what do you do? Your damndest to prevent that new store from coming up, so you can keep your job!
Rinse, and repeat.
Author notes
Written January 12th, 2006
