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The Truth About Markets, Pillar of Capitalist Ideology

Capitalists long ago learned that they could profit by manipulating both supply and demand to create or sustain “shortages” that would enable them to get higher prices. Capitalism created the advertising industry to boost demand above what it might oth…

Capitalists long ago learned that they could profit by manipulating both supply and demand to create or sustain “shortages” that would enable them to get higher prices. Capitalism created the advertising industry to boost demand above what it might otherwise be. At the same time, each industry organized to control supply (via informal agreements among producers, mergers, oligopolies, monopolies, and cartels). Social conditions and changes beyond the control of capitalists require them to constantly adjust their manipulations of demand and supply. In reality, markets are useful institutions for capitalists to manipulate for profit. In ideology, markets are useful institutions for capitalists to celebrate as somehow ideal-for-everyone pathways to optimal efficiency. More

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This content originally appeared on CounterPunch.org and was authored by Richard D. Wolff.


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