“And I've spent a lot of time ever since then thinking about what's the purpose of all the effort that I put into things” … absolutely loved the existential tangent you went on — but not a tangent really. It’s as much a part of the conversation as the economics involved. Is it I work therefore I am? Or, I contribute to society (ideally in a fruitful way) therefore I am? Would UBI, if ample, strip people of a sense of purpose they innately need? So thought provoking! Thank you!!!
Dearest Joseph, as I watched your interview with Mr. Krugman, honestly, most of what he said went way over my head. However, as I listened to Mr. Krugman's words, on the split screen, I found myself watching your face instead of his. I was so impressed by your attention and focus. You REALLY listened to what was being said. Thank you for using your intelligence and understanding of the issues facing our world today for people like me. You could be going along with the rich and famous attitude, while making a bazillion bucks and hoarding it all for yourself just like the 1% is obviously doing. Instead, you really are making a positive difference in our world. I am deeply grateful for you and the work you are doing to make planet earth a better place for all of us.
Ned Ludd has become my hero in that "advancement" will replace the individual...and worse, intellectual property. As a clergyman, my sermons and my lectures are my creations, my intellectual property, but accessible on various platforms...worse, when taken and used without attribution. So it is theft. So, Luddite I remain!
The article also shows that the rate of surplus value (basically, how much profit bosses squeeze out of workers, compared to what they pay in wages) is actually higher in poor countries than in rich ones. The reason is that wages are much higher in the advanced economies, even when productivity isn’t that much greater. For example, productivity in India is about 5% of the US level, but wages are only 2% of the US level. That means workers in India are paid even less for the value they create, which makes profits higher for capitalists.
This is connected to a key point about modern imperialism: capitalists in the rich countries try to escape, or halt, falling profits by shifting production to low-wage countries, and by cutting wages and benefits at home. But in the long run, these attacks can’t prevent the crisis. They only spread the contradictions to more workers.
The falling rate of profit and the fact that fewer workers are producing more goods creates a crisis of overproduction. In other words, more products are made than workers can afford to buy. Or, to make it even clearer: more is produced than can be sold at a profit.
Capitalists would rather destroy or throw away surplus goods than give them to people who desperately need them, because giving them away would “cheapen” the product. Their real motto is: “sell it for a profit or let it rot”—even if workers starve.
As markets shrink, the competition between capitalists—and especially between imperialist powers—becomes fiercer. For them, this is a life-or-death struggle for market share. And it doesn’t stay limited to boardrooms or trade deals. It eventually explodes into wars, where rival capitalists destroy not just each other’s factories, but also the workers who operate them.
The only solution is to end the profit system itself. That means replacing capitalism with a system based on cooperation, not competition—where production is organized to meet human needs, not to make profits. A system without money, wages, exploitation, or imperialist wars. In other words: "C0mnnum15nn"
The main goal of every capitalist is to make as much profit as possible. To do this, they try to cut labor costs in every way they can: lowering wages, laying people off, creating mass unemployment, outsourcing jobs, speeding up work, replacing workers with machines, moving factories to countries with lower wages, firing workers who fight back, dividing workers through racism, and paying immigrant workers less. All of these things hurt workers everywhere. But none of them fix the capitalists’ deeper problem: the rate of profit keeps falling.
Profits come from workers’ labor power—capitalists make money by paying workers less than the value they create. They push to pay less and less of the value workers create. When they replace workers with machines, they might boost profits for a while, but in the long run their rate of profit drops (as all bosses race to automate). However, machines don’t create profit—only human labor does. A machine in Bangladesh will on average produce the same AND cost the same, as the machine in USA; but a boss can extract more profit from a worker in Bangladesh than in the USA.
Marx believed that the falling rate of profit caused by automation and competition is the most important idea in political economy. This decline makes capitalists panic and leads to economic crises, harsher exploitation, shrinking markets, fiercer competition, and even wars. It shows that capitalism creates the very problems that bring about its own downfall. But it’s up to the working class—the “gravediggers” of capitalism—to consciously end it.
This idea of the falling rate of profit has been heavily attacked, with critics calling it false or illogical. But in reality, it holds up—and the evidence for it is growing stronger.
The falling rate of profit plays out in the real world.
See Tomas Rotta from Goldsmith University of London and Rishabh Kumar from the University of Massachusetts have made another important contribution to the empirical evidence supporting Marx’s law of the tendency of the rate of profit to fall. In their paper, Was Marx right? Development and exploitation in 43 countries, 2000–2014, R&K find that Marx’s law is right: capital intensity rises faster than the rate of exploitation and so the global profit rate declines.
Krugman was a major influencer in the global free trade policies that hit the US economy so hard. We lost millions of jobs and gained trillions in trade deficits. The guy is the darling of the political and intellectual elites. Ordinary Americans have no friends in the lofty places those folks haunt.
I came from nothing and spent the last 25 years grinding just to support my family — no loans, no help, just hustle. Now, after building several businesses, I finally see a real shot at becoming what you’d call “wealthy.” And yeah, I wouldn’t mind keeping some of those taxes.
When I had no money, I got a lot back at tax time. Now that I’m building, I’d hate to see it all eaten up. I get where you’re coming from, Joe — when you have a lot, you feel like you should give back. But honestly, with that $70K tax break you mentioned, you could donate it straight to charities that need it. At the end of the day, if you’re smart, you can pay in as much as you want while still building.
Joe, you’re an inspiration — real, down-to-earth, and I love your perspective. I hope you check out my Substack too. From the bottom to the top, I’m on the come-up with multiple businesses and even managing a celebrity brand. Much respect, brother — keep grinding. 🙌
“And I've spent a lot of time ever since then thinking about what's the purpose of all the effort that I put into things” … absolutely loved the existential tangent you went on — but not a tangent really. It’s as much a part of the conversation as the economics involved. Is it I work therefore I am? Or, I contribute to society (ideally in a fruitful way) therefore I am? Would UBI, if ample, strip people of a sense of purpose they innately need? So thought provoking! Thank you!!!
Dearest Joseph, as I watched your interview with Mr. Krugman, honestly, most of what he said went way over my head. However, as I listened to Mr. Krugman's words, on the split screen, I found myself watching your face instead of his. I was so impressed by your attention and focus. You REALLY listened to what was being said. Thank you for using your intelligence and understanding of the issues facing our world today for people like me. You could be going along with the rich and famous attitude, while making a bazillion bucks and hoarding it all for yourself just like the 1% is obviously doing. Instead, you really are making a positive difference in our world. I am deeply grateful for you and the work you are doing to make planet earth a better place for all of us.
500 days of summer now summer is over and I just wanted to spend it with you. Not you research me before meeting me
Oh I did block 1 freedom of the press employee. Stephanie is the problem who needs a Restraining Order.
Someone is blocking my emails. Only 1 went to Spam so the others are not coming through at all. Like Glenn, Schulz and probably more I'm not getting.
After WWII, foreign countries were in rubble. The USA became an unparalleled manufacturing engine.
The volume of money fluctuates on confidence where its intrinsic value is measured against how much is circulating. Emphasis on “confidence”.
Ned Ludd has become my hero in that "advancement" will replace the individual...and worse, intellectual property. As a clergyman, my sermons and my lectures are my creations, my intellectual property, but accessible on various platforms...worse, when taken and used without attribution. So it is theft. So, Luddite I remain!
The article also shows that the rate of surplus value (basically, how much profit bosses squeeze out of workers, compared to what they pay in wages) is actually higher in poor countries than in rich ones. The reason is that wages are much higher in the advanced economies, even when productivity isn’t that much greater. For example, productivity in India is about 5% of the US level, but wages are only 2% of the US level. That means workers in India are paid even less for the value they create, which makes profits higher for capitalists.
This is connected to a key point about modern imperialism: capitalists in the rich countries try to escape, or halt, falling profits by shifting production to low-wage countries, and by cutting wages and benefits at home. But in the long run, these attacks can’t prevent the crisis. They only spread the contradictions to more workers.
The falling rate of profit and the fact that fewer workers are producing more goods creates a crisis of overproduction. In other words, more products are made than workers can afford to buy. Or, to make it even clearer: more is produced than can be sold at a profit.
Capitalists would rather destroy or throw away surplus goods than give them to people who desperately need them, because giving them away would “cheapen” the product. Their real motto is: “sell it for a profit or let it rot”—even if workers starve.
As markets shrink, the competition between capitalists—and especially between imperialist powers—becomes fiercer. For them, this is a life-or-death struggle for market share. And it doesn’t stay limited to boardrooms or trade deals. It eventually explodes into wars, where rival capitalists destroy not just each other’s factories, but also the workers who operate them.
The only solution is to end the profit system itself. That means replacing capitalism with a system based on cooperation, not competition—where production is organized to meet human needs, not to make profits. A system without money, wages, exploitation, or imperialist wars. In other words: "C0mnnum15nn"
All that needs to be understood is:
The main goal of every capitalist is to make as much profit as possible. To do this, they try to cut labor costs in every way they can: lowering wages, laying people off, creating mass unemployment, outsourcing jobs, speeding up work, replacing workers with machines, moving factories to countries with lower wages, firing workers who fight back, dividing workers through racism, and paying immigrant workers less. All of these things hurt workers everywhere. But none of them fix the capitalists’ deeper problem: the rate of profit keeps falling.
Profits come from workers’ labor power—capitalists make money by paying workers less than the value they create. They push to pay less and less of the value workers create. When they replace workers with machines, they might boost profits for a while, but in the long run their rate of profit drops (as all bosses race to automate). However, machines don’t create profit—only human labor does. A machine in Bangladesh will on average produce the same AND cost the same, as the machine in USA; but a boss can extract more profit from a worker in Bangladesh than in the USA.
Marx believed that the falling rate of profit caused by automation and competition is the most important idea in political economy. This decline makes capitalists panic and leads to economic crises, harsher exploitation, shrinking markets, fiercer competition, and even wars. It shows that capitalism creates the very problems that bring about its own downfall. But it’s up to the working class—the “gravediggers” of capitalism—to consciously end it.
This idea of the falling rate of profit has been heavily attacked, with critics calling it false or illogical. But in reality, it holds up—and the evidence for it is growing stronger.
The falling rate of profit plays out in the real world.
See Tomas Rotta from Goldsmith University of London and Rishabh Kumar from the University of Massachusetts have made another important contribution to the empirical evidence supporting Marx’s law of the tendency of the rate of profit to fall. In their paper, Was Marx right? Development and exploitation in 43 countries, 2000–2014, R&K find that Marx’s law is right: capital intensity rises faster than the rate of exploitation and so the global profit rate declines.
Krugman was a major influencer in the global free trade policies that hit the US economy so hard. We lost millions of jobs and gained trillions in trade deficits. The guy is the darling of the political and intellectual elites. Ordinary Americans have no friends in the lofty places those folks haunt.
I came from nothing and spent the last 25 years grinding just to support my family — no loans, no help, just hustle. Now, after building several businesses, I finally see a real shot at becoming what you’d call “wealthy.” And yeah, I wouldn’t mind keeping some of those taxes.
When I had no money, I got a lot back at tax time. Now that I’m building, I’d hate to see it all eaten up. I get where you’re coming from, Joe — when you have a lot, you feel like you should give back. But honestly, with that $70K tax break you mentioned, you could donate it straight to charities that need it. At the end of the day, if you’re smart, you can pay in as much as you want while still building.
Joe, you’re an inspiration — real, down-to-earth, and I love your perspective. I hope you check out my Substack too. From the bottom to the top, I’m on the come-up with multiple businesses and even managing a celebrity brand. Much respect, brother — keep grinding. 🙌
Getting ready!