Where there is any conception of Currency, there is a Command and Control (C2) Mechanism facilitating it. And where there is any C2 Mechanism, there is a Unity of Commands with a corresponding Unity of Efforts. Liberal Capitalism’s conception of Currency is “Kapital,” its C2 Mechanism being the “Incentive.” To issue Kapital is to issue a command as Incentives on behalf of a Unity of Effort called “Supply” and a concurring Unity of Command called “Demand.”
The term “Supply and Demand” refers to how Kapital and Incentives affect the Values of commodities, goods and services according to the “Use-Value” and “Exchange-Value” as part of determining their “Unit-Prices.” Every Use-Value is ‘stimulated’ by its Marginal Utility by offering the most pleasure for the least pain, the most Kapital for the least amount of effort. Every Exchange-Value is ‘stimulated’ by the Availability of goods and services in existence based on their overall Quantity and the Frequency at which they can be bought and sold for a listed Unit-Price. In a competitive and functional Market/Mixed Economy, privatized commercial firms constitute themselves as the ‘market forces’ driving the production of goods and services for profits measured in terms of Kapital Accumulation. The goal of market forces is to facilitate the possibility of an Equilibrium between the Unity of Efforts behind Supply and the Unity of Commands behind Demand based on their Incentives and the Kapital ultimately driving them.
Under Liberal Capitalism and its Market/Mixed Economy, Prices are always in constant flux due to different ideological factors. It is ‘ideological’ insofar as the factors themselves are dependent on the preceding premise that every Individual is inwardly unfree and inwardly insecure by nature and thus can only be outwardly free and outwardly secure through their government under a social contract with civil society. True freedom and true security do not exist under Liberal Capitalism. “Uncertainty” arises not from whether the information from the economy is factually accurate, but the fact that any Individual, by being inwardly unfree and inwardly insecure, will truly know what they need or even want in Life. That is why Liberal Capitalism deems the outward freedom as “political and economic freedoms” and outward securities as “political and economic securities.” Every Market/Mixed Economy creates more Taxes, more Regulations, more Social Welfare and Pension payments, more Consumer and Government Spending, more budgetary deficits and eventually more Schuld (Debt/Schuld) through Kapital Accumulation.
It is through the process of Kapital Accumulation within the Market/Mixed Economy that we encounter those factors. This “Comparative Advantage” causes certain goods and services to achieve a greater Demand by being priced lower and tempered by a greater Supply. There are “Opportunity Costs” that affect whenever somebody decides on one choice over a multitude of other choices, “Marginal Costs” that affect whether somebody decides to produce more of the same thing, and “Deadweight Losses” that arise from trying to achieve an “Equilibrium” between Supply and Demand. Additionally, there are those among us who have certain “Preferences” that may not necessarily be their own insofar as they had originated from repeated exposure to Liberal Capitalist propaganda masquerading as ‘advertisements’.
Certain reforms implemented within the framework of Liberal Capitalism do not always bode well. One example involves “Price Controls” that essentially freeze a given Unit-Price in place with a given Floor and Ceiling, incognizant of the Incentives of Supply and Demand. This is how shortages occur because Price Controls do not account for any external changes to current economic conditions and everybody will not always know why the Unit-Price for anything would continue rising. Something similar tends to occur in the context of “Rent Controls,” which rises as the consequence of gradual increases in monthly rents. Most people are not going to be aware of factors beyond their control such as land speculation within real estate, interest rates set by the central bank, or the amount of Kapital one borrows in the mortgage to purchase their own home.
The moment one realizes how Incentives of Supply and Demand operate will also be the moment when they become acutely aware of specific ideological language like “Wealth Inequality,” “Oversupply,” and “Underconsumption.” Wealth Inequality occurs among people ‘living paycheck to paycheck’ and demanding that the people wealthier than them should pay more taxes than they do. The idea functions more like a self-correction of market forces insofar as the aim is to achieve some semblance of Equilibrium by agitating for ‘Wealth Equality’. Conversely, any instances of Oversupply (Supply not in sync with Demand) or Underconsumption (Demand not in sync with Supply) will cause the Unit-Price to fall or vice versa.
Another similar variation is the concept of “Wage Controls,” where the amount of Kapital allocated to a Minimum Wage for instance is either cognizant or incognizant of the Incentives of Supply and Demand. It becomes inevitable within Market/Mixed Economies to expect employees to agitate for a higher Minimum Wage and for employers to agitate for a lower Minimum Wage. Obviously, what is being conveyed here is that the employers shall pay their employees more from the Kapital Accumulation that may not always come from their own respective economic actions. It is more likely to expect the employers and employees of their firm to be receiving some of the Kapital from the loans they receive from the banks, the investments of investors at a financial market, or the tax cuts of the Parliamentary Democracy governing their Liberal Capitalist regime.
There is a very good reason why, when somebody advocates for Socialism in America and the broader Western world, the first question will always be encountered: “Where will you find the Kapital to pay for it?” One does not answer with either or a combination of “more taxes,” “more spending,” “more welfare handouts and pensions,” and more of the same that already occurs under Liberal Capitalism. One does not begin their advocacy for Socialism by trying to exist within the framework of the Kapital and Schuld that naturally accumulates under Incentives of Supply and Demand. Any advocacy of Socialism must operate according to a different way of life with its own corresponding political and social ways of living under its own economic order.
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