A
abucs
Guest
Yes, as I mentioned Aldi can do that because it is backed by capital. There is nothing wrong with that. The capital can be from saved business income (all the better) or raised capital (owned by shareholders) or bank loan (provided by depositors). Everyone can thus share in these companies creation of wealth.One thing I’d point out is that this worked because Aldi’s already had a large amount of money to come in and do that. I’m more concerned about the person who doesn’t have all that. It doesn’t help much if you need another big business to compete with a big business. The question is whether 18 year old Joe Blow who doesn’t have anything other than a high school degree can make a life for himself without either putting himself deep into debt or staying working at a dead-end job. From what I’ve seen, the answer in libertarian capitalism is that he can’t, because the people who already have money can do it better and it benefits them to keep his wages down.
The average man’s individual wealth when accumulated with others far exceeds that of rich individuals. Look at Rupert Murdoch or Frank Lowry and their (now) minority ownership in the very companies they helped to create. The people win there.
Joe Blow may or may not make a life for himself. I’d suggest he get his high school qualification to help him to do that. I’d suggest that if he wants to take part in the success of society that he develop his skills and work in an area that suits him. In the West because capitalism is so developed Joe will have many more opportunities. He can even be one of the web designers, transport workers or packaging professionals who work with the supermarkets (or online competitors) and share in the created wealth.
Joe has a whole life time to make ‘a life for himself’. The supermarket doesn’t owe him a life but for at least part of the journey they can help each other. Or perhaps he will choose a completely different industry.
Yes there are pressures to keep prices down such as the price of labour, but don’t forget that there are also pressures to raise prices, including the price of labour.
Joe is a participant not a slave. That is a difference in thinking between a capitalistic mindset advocating a plurality of people creating wealth and a mindset of authoritarian government control.
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