Its definitely not capitalism. Our system survives by creating economic slaves, for instance the mortgage acts as a gatekeeper in the fiat system, by locking up economic value and an inelastic good in a form that can only be unlocked by completing the payment obligations. Housing rises in price to max out the metaphorical bucket of whatever interest rates allow for debt accumulation, and property ownership is controlled by one’s ability to secure debt. This ensures that the financial system has a steady stream of obligations that help sustain the flow of currency, which helps drive aggregate demand.
The goal is to create a 2% inflation, as calculated by an index that excludes housing appreciation and investments, you require ever growing money supply. Money supply is grown via debt accumulation, this then funnels down into foods and services, excluding substitutions and hedonic adjustments, deriving a 2% inflation to a dynamic basket of goods. Housing works well for this because housing is finite and demand in inelastic; prices can rise faster than fundamentals, and it is therefore a liquidity sponge that is a necessary liability to take.
Viking_Hippie@lemmy.dbzer0.com 13 hours ago
It’s WORSE in the US than in most other countries, including all other wealthy countries, though. Differences in scale matter
Taken to the extremes it will inevitably reach if not sufficiently restrained, capitalism IS corruption with fancy packaging. It’s right in the name: it’s an ism (belief system) where accruing capital is the most important of ALL things.
In every Western country other than the US, accepting large sums of money and other perks from rich people who want favors is the DEFINITION of corruption, whether or not there’s a specifically stated quid pro quo.
amorpheus@lemmy.world 7 hours ago
It may be worse in the USA but capitalism absolutely is the reason it happens.