Tuesday, September 22, 2009

Capitalism is Inherently Long-Term

Capitalism depends upon the accumulation of capital in order to implement more indirect methods of production. Capital makes it possible to build a complex system of production, supporting those who build it and the entrepreneur in the gap between laying its foundation and bringing the product to market. As, over time, production processes become ever more complex the tendency is for the views of capitalists to stretch further into the future.

This view is in contradiction to the general view that capitalism is short term, but that view seems to be more oriented to the financial side of economic activity. Finance, especially in the world of fiat currency, is largely short term as it is not oriented to funding productive processes.
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