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COVID-19 Exposes the Weakness of a Major Theory Used to Justify Capitalism
Wolff, Richard D.
http://www.counterpunch.org/2020/07/09/covid-19-exposes-the-weakness-of-a-major-theory-used-to-justify-capitalism/Date Written: 2020-07-09 Publisher: Counterpunch Year Published: 2020 Resource Type: Article Cx Number: CX24746 Wolff argues that COVID-19 exposed orthodox economics -- the idea that capitalists' decisions about investing and producing are inherenty "efficent" -- as a sham. Abstract: - Excerpt: COVID-19 exposes the sham of orthodox economics. It was not profitable for capitalists to produce and stockpile adequate quantities of tests, masks, gloves, beds, etc., to be prepared for the virus. Given the costs to produce these commodities, there was no way of knowing how long they would need to be stockpiled before there would be a demand for and purchase of them. Stockpiling costs. So do monitoring stockpiles for deterioration and replacing deteriorated stocks or insuring against deterioration. There was, in short, no way to know (and thus be able to calculate) the costs in the manner fantasized by orthodox economics. Likewise, there was no way for capitalists to know or calculate the prices they might receive for selling the commodities they might stockpile. If no major disease arrived, revenues might be very small and take a long time to materialize. If a pandemic arrived, high prices might be charged, but when? If a national emergency brought in the government as the single buyer of such commodities (then delivered freely to the people in need), the prices would likely be much lower. If the United States cooperated with other countries on producing and distributing these commodities, and if such cooperation included pricing, that too would impact revenues from selling them. In short, capitalists cannot know or calculate revenues in the manner fantasized by orthodox economics. Subject Headings |