Tuesday, May 01, 2007

Das Kapitalism

Capitalism, that system of free market, free-wheeling practices, contains the seeds of its own destruction. Some would say that is God's truth, others would insist that nothing is further from the truth. The last economic recession in Singapore in 2003/04 is still fresh in people's memories. But the capitalist monster cannot be bothered as it reared a darker side of its head.

You see, capitalism's mantra is to maximise profit from one's investments - always. So when rental rates in Singapore, both in the commercial and residential markets sky-rocketed in recent months, it is capitalism through and through at work here. In fact, the current scramble for some people to offload their houses without regard to anything else except $$$ is a perfect example of the outworking of the capitalist mantra. Capitalism has a very short memory. It lives for the moment and has little sense and respect for history, or for that matter, fellow human beings and the community. That is why capitalism is doomed to a series of booms and busts. It is in its nature.

Yes, costs in Singapore are creeping up again. Capitalists, the people who own the factors of production - the buildings and houses - are laughing all the way to the bank now. But this windfall will ultimately lead to a desertion of patronage and business, whence the busts will come around again. Capitalism will then starve, until the next upswing comes. But who cares? As a wise capitalist bum once said, "Eat, drink and be merry, for tomorrow we die".

Happy May Day!

Image source: http://www.stockxpert.com/

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