Marx Was Right
I have started my seventh year in China, with bi-monthly sojourns to South Korea where I proceed directly to the Itaewon bookstore for three weekly issues of the Economist. The store lacks the ambitious selection of Page One in Hong Kong but it did have four choices for Marx. I came away with The Communist Manifesto and The Essential Marx edited by Leon Trotsky; two hours later I was in complete agreement on Marx’s theory of Capitalism.
C – M – C
M – C – M1
M1 = M + ∆M = surplus value
The disagreement with Marx comes about with his Communist philosophy but his 150 year old Econ 101 course is equally valid today.
"You are horrified at our intending to do away with private property. But in your existing society, private property is already done away with for nine tenths of the population.” Karl Marx
New York Times on July 22, 2014, the "richest 1 percent in the United States now own more wealth than the bottom 90 percent."
Like Marx, Thomas Piketty, the economic North Star of a new generation, has proscribed taking away 80% of private property with an international wealth tax.
Marx’s C – M – C equation from the dairy goat farmer’s perspective:
(C) Stands for a COMMODITY in our case a gallon of goat milk.
(M) Means MONEY, $15 at the farmers’ market.
(C) The new COMMODITY, whatever the buyer turns it into; most people drink it but others make kefir, cheese or soap.
(M) MONEY is needed to produce the (COMMODITY) in our example it cost us $5 to produce one gallon which begat $15 of new (M1) MONEY. Marx calls this transaction "exchange value.” The next step in the process is defined as "surplus value” where:
M1 = M + ∆M = $10 of "surplus value”
Bill Gates, the bourgeoisiest guy on the planet, thinks philanthropy is the answer but he wants to give it away, his way. In 1998, Gates' net worth was valued at . By October 2014, that number had increased nearly 60 percent to , despite his having given away tens of billions of dollars.
Adam Smith’s 1776 Econ 101 text book, Wealth of Nations declares that "Agriculture, the Produce of the Land, is the SOLE or the PRINCIPAL Source of the Revenue and Wealth of every Country.”
If that is so, then in the 500 years of American farming, the individual farmer only made M1 MONEY from 1865 when Lincoln freed the slaves, ending subsidized agriculture to the end of WWI when Henry Ford’s ‘Farmall’' tractor forced the self-sustaining bourgeoisie agrarian entrepreneur off the land and into the cities to become a proletarian labor-power slave.
Marx was right, Piketty proved that Marx was right but Gates put his (M1) MONEY where it was needed in SOCIAL ENTREPRENEURSHIP in the support of agriculture in Africa and India.
I observed Agricultural Cooperative Development International’s ‘Small Farmer Production Project’ in Egypt in 1985, I know a millennia ago, but it was a USAID sponsored form of Social Entrepreneurship. Last year in Ethiopia, while Jane Marie climbed a mountain to view the falls of Bahir Dar, I interrogated a USAID dairy coop farmer and the collection station boss. The farmer got a buck a gallon which is squares with the $1.10 for a US proletarian farmer, only a buck in Ethiopia made the farmer a member of the "bourgeois" class.
Global warming, illegal immigration, over population, world hunger, income equality, health, soil deprivation and universal happiness can be easily achieved by local organic food production. So, why isn’t happening? The Crony Capitalism of Statism. Two of the five most economically free nations: Hong Kong and Singapore are city states; two others Australia and New Zealand practice industrialized agriculture – all be it not as pervasive as the US. Only Switzerland, retains a "bourgeois" attitude in farming. firstname.lastname@example.org