Adam Smith, Karl Marx, and Me; Capitalism, Marxism, and Equism; Black Folk Need To Know
On February 11, 2023, Rustam Seerat, posted the following essay on medium.com. It is an AI-generated imaginary conversation between Adam Smith and Karl Marx discussing the subject of inflation. I exercised my artistic prerogative to participate in the conversation. It presented a great opportunity for me to deal with Capitalism and Marxism, both European economic ideologies consistent with European culture, in one fell swoop. So here we go; with me inserting myself into the conversation.
Adam Smith: “Hello Karl, it’s good to see you. I have been following the recent inflation trends and wanted to discuss this matter with you.”
Karl Marx: “Hello Adam, I am happy to have this conversation with you. What is your take on the current inflation?”
Ernest Edwards: “Greetings gentlemen. Thanks for allowing me to participate. and also comment on the phenomenon called inflation, which is endemic to Capitalism, the economic pall that is adversely affecting us all”
Adam Smith: “In my view, the current inflation is a result of excess money supply relative to demand. The government is printing too much money, which is leading to an increase in demand and thus, higher prices.”
Karl Marx: “I disagree with your assessment, Adam. The root cause of the current inflation is the unequal distribution of wealth and power in our capitalist society. The concentration of wealth and power in the hands of a small group of capitalists enables them to control markets and set prices in their own favor.”
Ernest Edwards: “Adam, I agree with Karl. I disagree with you. Your statement, “the current inflation is a result of excess money supply relative to demand. The government is printing too much money” is extremely misleading.”
There may be an excess of money supply relative to demand, because the government is printing too much money, but the government doesn’t determine how much money is to be printed. As Karl said, “The concentration of wealth and power in the hands of a small group of capitalists enable them to control markets and set prices in their own favor.”
The United States Congress, under the Federal Reserve Act of 1913, granted 12 Privately Owned Regional Reserve Banks a monopoly on U.S. currency. The Federal Reserve System, which is the Central Bank of the United States, is privately owned.”
The 12 privately owned Federal Reserve Banks of the United States are the lenders to the United States Government; and its three hundred thirty million (330,000,000) citizens who presently hold the incredible debt amount of Thirty Trillion Dollars ($30,000,000,000,000).
Congressman Wright Patman, Chairman of the House of Representatives Committee on Banking and Currency who served in Congress for 46 years from 1929–1975, used 20 years of his tenure to introduce legislation calling for the repeal of the Federal Reserve Act. His arguments were based on the experience of the 1929 stock market crash, the following great depression, the New Deal, the war years, and the post-war recovery and boom period. He here is his critical analysis and assessment.
“In the US today, we have in effect two governments. We have the duly constituted government, and then we have an independent, uncontrolled and uncoordinated government in the Federal Reserve, operating the money powers which are reserved for Congress.”
Now back to the discussion.
Adam Smith: ‘I agree that the concentration of wealth and power can lead to market distortions. However, I believe that the best way to address inflation is to reduce the money supply, possibly through measures such as raising interest rates or reducing government spending.’
Karl Marx: “But such measures will only exacerbate the problem, Adam. Higher interest rates will increase the cost of borrowing for consumers and businesses, making it harder for them to access credit and invest in the economy. Similarly, reducing government spending will lead to austerity measures that will hurt the most vulnerable members of society.”
Ernest Edwards: “Karl, once again, you are ‘right on the money.’ Under Capitalism, there is a perpetual cycle of inflation and recession (boom and bust); they are inextricably bound.”
Adam Smith: “I see your point, Karl. However, I believe that the market should be allowed to regulate itself, and that government intervention will only lead to further distortions.”
Karl Marx: “But the market is not a neutral entity, Adam. It is shaped by the interests of the capitalist class, who use their wealth and power to influence prices, wages, and working conditions. The only way to address inflation and other problems in our society is to replace the capitalist system with a socialist or communist one, where resources and wealth are shared more equally among all members of society.”
Ernest Edwards: “Adam, why do you insist on talking about government intervention. The U.S. government has nothing to do with the supply, nor the cost of money (interest)y, nor the market. As Karl said, “the market is not neutral…It is shaped by the interests of the capitalist class, who use their wealth and power to influence prices, wages, and working conditions.”
I don’t agree with Karl’s solution of replacing the capitalist system with his definition of a socialist or communist one.” Karl wants resources and wealth more equally shared. I don’t want them more equally shared; I want them totally equally shared. By the way all three systems are from a European mind. They are not the solutions to our problem. They are the cause of our problems.”
“A problem cannot be solved by the consciousness that created it.” — Albert Einstein
Adam Smith: “I disagree, Karl. While I agree that there are some flaws in the capitalist system, I believe that the market is the most efficient and effective way to allocate resources and create wealth. The government should only intervene when necessary to prevent market failures and ensure that competition is fair”.
Karl Marx: “But the market is not a panacea, Adam. It cannot solve all of our problems, particularly those related to inequality and injustice. We need a more comprehensive and systemic approach that addresses the root causes of these problems.”
Ernest Edwards: “I am once again going to have to agree with Karl. “We need a more comprehensive and systematic approach that addresses the root cause of these problems,” which neither of you directly address.”
A.M. Babu’s Postscript to How Europe Underdeveloped Africa, 1975, by Walter Rodney, settles the matter for me.
“After reading the harrowing accounts of the brutality of slavery, of subjugation, of deprivation and humiliation, when whole civilizations were crushed in order to serve the imperialist interests of the West: when settled societies were disintegrated by force of imperialist arms so the plantation owners of the ‘new world’ could get their uprooted, and therefore permanent labor force to build what is now the most advanced capitalist economy, it becomes absolutely clear that the only way out of our current impasse is through a revolutionary path — a complete break from the system which is responsible for all of our past and present miseries.”
Equism is the harbinger.
If my writing interests you, I hope you will pass it on to the folks who follow you, and also to the folks who you follow. I don’t write for money. My books that offer insight into who I am, and what I am about, including full details for the implementation of Equism, are free. They can be found at my blog equism.net. Please go to the Tab Links to Books, and click on either one, or both, for you perusal and assessment.
Please offer your thoughts on the subject.