Jay's Tuesday Free Enterprise Quote - 21 January 2014

By
Home Inspector with Jay Markanich Real Estate Inspections, LLC 3380-000723

 

 
"The increase of social wealth is not accompanied by a diminishing number of capitalist magnates, but by an increasing number of capitalists of all degrees."

Eduard Bernstein (1850 - 1932)
 
We should define a word - magnate.  
 
What does Dr. Bernstein mean by magnate?
 
It is a word derived from the Latin word magnus, which means "great man."  In our lexicon, magnate is used in the business context as it refers to a wealthy and influential person.
 
Notice when he lived.  He saw the rise of the Industrial Revolution.  He witnessed how capitalist societies produced men of who took great risks, built entire industries from scratch, and created wealth never before known in world history.  Wealth not only for themselves, mind you, but their nation and their nation's people.
 
He saw how the the wealth in capitalist societies did in fact make its way to all strata of society, raising all boats and improving the standards of living of those living in those societies.
 
Dr. Bernstein saw the great goodwill and philanthropy of the richest, and how much influence they had with their generosity toward the improvements they deemed worthy - improvements in education, music, museums, medicine, and science.
 
BUT HE WAS IN UTTER CONFLICT.  
 
This economic benevolence flew in the face of his social democratic beliefs.  He began his economic thinking believing in the fragility of capitalism.  He saw its downs, beginning with the economic crisis of 1873 in Europe, which continued into the 1890s, as consistent with his beliefs that capitalism did not have the strength of the social democratic movement, which would ultimately lead the reformist labor movement toward new heights in economic prosperity and socialist ideals.  That, of course, never happened.
 
At one point he befriended Friedrich Engels, and began advocating the gradual development of socialism.  He saw the bourgeoisie as oppressive parasites, using the ignorant masses as necessary cogs in their machinery of business, abusing them and grinding them down as they, THEY, the masses of the proletariat, pushed the bourgeoisie up in life!
 
Living in London, however, he saw how that society operated.  He had seen, and read about what was happening in the United States, and how productive industry there expanded fast and thrived in a free enterprise setting.  He returned to Germany no longer believing that socialism to grow as the product of a revolt against the capitalist middle class.
 
Were the capitalists ruthless at times?  Yes, certainly, within the contexts of their purview.  They were trying to build industries, not mere businesses, but industries.  And they grew incredibly rich.  But people from all over the world flocked to them to work.  Conditions weren't good at times, but they worked, and were able to move, in many cases, from that work to better work.  People continued to flock, unabated.  And, where they demonstrated intellect and capacity, they moved up within their industries and businesses.  Some even started businesses of their own!
 
He saw and documented how the west, the capitalist societies, grew incredibly rich as well.  He saw their growth and riches as organic, and growing as a whole.
 
Toward the end of his life he thought he witnessed the popularity and reforms of social democracy.  Then he was unable to dissuade his country from its attraction to the Italian Fascists.  And later his social democratic movement morphed and became the German move toward National Socialism.  He was horrified by the bloody Nazis and their thinking.  His society was not free, it was CONTROLLED.  His beloved social democracy broken, it was in this time frame when he came out with the quote above.
 
Six weeks after his death his country was to give way to the incredible evil of a man named Hitler. 
 
Capitalism, free enterprise, then, had to turn its ability to produce and create and organize, and all of its wealth and energy was then directed toward the defeat of a world-wide threat that was to combine into an allied/political axis on both sides of the world.  It was an axis that wanted to combine to control EVERYBODY in the world in ways that were not social or democratic, as Bernstein desired.
 
Capitalism, free enterprise, was called on to save the world from crushing, brutal economic and political  CONTROL.
 
And it did.
 
 
Posted by

Jay Markanich Real Estate Inspections, LLC  

Based in Bristow, serving all of Northern Virginia.

Office (703) 330-6388   Cell (703) 585-7560

www.jaymarinspect.com


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Rainmaker
1,251,661
Raymond E. Camp
Howard Hanna Real Estate Services - Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

Good morning Jay,

As history repeats itself we are in the middle of this thinking; hopefully cooler heads prevail.

Make yourself a great day.

Jan 20, 2014 09:37 PM #1
Rainmaker
1,843,615
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

And where were the social democrats in this country Raymond?  Probably complaining about the rationing during the war.

My fear is that things always morph.  They ALWAYS morph.

Jan 20, 2014 09:58 PM #2
Rainmaker
592,740
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

He saw the bourgeoisie as oppressive parasites, using the ignorant masses as necessary cogs in their machinery of business, abusing them and grinding them down as they, THEY, the masses of the proletariat, pushed the bourgeoisie up in life!

Change bourgeoisie to politician and you have the current political climate. It is going on in both parties. Pretty much all the Dems and the centrist (RINO) Reps are in it for themselves (and family and friends).

Jan 20, 2014 11:08 PM #3
Rainmaker
1,843,615
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

So, Than, you see past my devious trickery, masking this post so nobody would relate it to what we have now?  Now all I can do it deny it.

Do you also see in my post today's biggest fomenter of social "democracy?"  Oh well, I'll just deny that too...

Jan 20, 2014 11:23 PM #4
Ambassador
2,352,194
Fred Griffin, on leave of absence from ActiveRain
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

America and the Allies saved the world in World War II.

Who will save America when the Despot suspends the Constitution, dissolves Congress, and declares himself to be Supreme Ruler?

Jan 21, 2014 10:29 AM #5
Rainmaker
1,843,615
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

That was Reagan's point exactly, Fred, when he said America is the shining city on the hill and if freedom fails here there will be no where else to resurrect it.

Jan 21, 2014 05:40 PM #6
Rainmaker
592,740
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

Social democracy doesn't exist. That hasn't stopped people from trying to force it into existance and that would be why we are failing as a country.

Jan 21, 2014 11:49 PM #7
Rainmaker
1,843,615
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

It's a bit like calling statists "progressives," Than.  They aren't, and are stuck in the past, way past, and use the same pages from the same playbook all the time.

Jan 22, 2014 12:18 AM #8
Rainmaker
1,431,210
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Most rich people may be ruthless at times but also turn into big givers to charity and public works.  They want to build a legacy that goes beyond their business.  I would rather have ruthless business men than ruthless politicians.

Jan 22, 2014 04:03 AM #9
Rainmaker
1,843,615
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

You are saying that poor people cannot be ruthless at times Gene?  ;>)

I think people in general can be ruthless, pressed, or pushed into a corner.  Agreeing with the last statement!

Jan 22, 2014 12:08 PM #10
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Rainmaker
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Jay Markanich

Home Inspector - servicing all Northern Virginia
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