It's always been detached, and it's always made the real economy worse.

[THREAD] 1/10

What is profit? It's excess labor.

You and your coworkers make a chair. Your boss sells that chair for more than he pays for the production of that chair and pockets the extra money.

So he pays you less than what he should and calls the unpaid labor he took "profit." 2/10
Well, the stock market adds a layer to that.

So now, when you work, it isn't just your boss that is siphoning off your excess labor but it is also all the shareholders.

There's a whole class of people who now rely on you to produce those chairs without fair compensation. 3/10
And in order to support these people, you and your coworkers need to up your productivity. More hours etc.

But Wall Street demands endless growth in order to keep the game going, so that's not enough.

So as your productivity increases, your relative wages suffer. 4/10
Not because the goods don't have value or because your labor is worth less. Often it's actually worth more because you've had to become incredibly productive in order to keep your job.

No, your wages suffer because there are so many people who need to profit from your work. 5/10
Meanwhile, that class of shareholders move their money around these various stocks often on the basis of feelings and rumors.

Panic buying, panic selling. These are common things in the market and aren't necessarily related to anything you do in the chair factory. 6/10
And as a result of this market of feelings, you might come into the chair factory one day and discover shareholders got nervous and the stock price collapsed.

So the company was sold to Bain Capital who closed shop and took it as a loss in order to reduce their tax burden. 7/10
So now the chair factory, that you have been working at for your entire life, has closed and everyone has lost their jobs.

Not because of anything you did, nor anything related to the market for chairs. 8/10
And, like your wages, this had nothing to do with your skill at making chairs.

It was all due to the decisions people were making on how best to monetize your life. And in the end you were worth more to them unemployed than doing what you're best at: making chairs. 9/10
But sure, the Wall Street is super rational and productive and is incredibly good for the "real economy", and it's just people on Reddit who make it bad. 10/10

More from Economy

Interesting thread, but I don't think ecosocialists or degrowthers are arguing that if German socialists had come to power the world would be green by now. Socialism is not automatically green. Eco-socialism is what it says - a green version of socialism - to be tested /1


The historical counterfactual also in not totally convincing. So let's assume Germany and Europe went socialist. The world economy would have evolved exactly the same way it did? 🤔 I doubt it, this is too deterministic. Examples: /2

We do not know if the transition from coal to oil would have taken place when it took place, the way it did. From Timothy Mitchell we know that oil was a fix for capitalism to bypass the labour strikes of coal workers. One would think that socialists would treat workers better /3

We also do not know if socialist governments would strong arm the Middle East the way capitalists did, starting wars to secure cheap oil, and setting up puppet governments. One would want to think that Rosa Luxembourg would not go down that path..../4

We also do not know if they would have continued colonial unequal exchange, extracting raw materials as cheap as possible from the rest of the world. Without cheap oil and cheap materials, it is anyone's guess if GDP and CO2 would be where it is now. /5

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