September 15, 2015 No.3
https://www.facebook.com/mehtarahulc/posts/10153038097291922
Marx's "definition" and one of his assertions that "factory owners exploit labor" was true in his days, and isnt false , but not applicable today. Today, real "exploitation" comes from land hoarding and monopolies / oligopolies created by Govt such Urban Planners, Banks , Tax-law-drafters etc.
.
But CPI / CPM MPs and academicians in Political Superstition dept etc get bribes from land hoarders , and so still chase factory owners and ask activists to IGNORE "exploitation" done by land hoarders, Urban Planners , Banks , Tax-law-draftters etc
.
Some 200 years ago, setting factory required govt licenses which were not easy to get (except in USA, where due to RTR and multi-elections, geting licences was easier). And back then , gold was currency and so currency was scarce, And , there were no tools like share markets, where 10000s small persons can come, collect capital and form large factory without many large contributors. And so labor employers were fewer.
.
So "factories" were oligopolies and often monopolies. And so factory owners used this monopoly to over charge customers and underpay labor.
.
Today, it is easier to complete legal restrictions to set up factories and also capital can be obtained from share market. And so number of factories have increased, which is why there is more competition and many factory owners lose out in competition and shut down. Also, via share market, raising capital is easy.
.
So factory owners no longer have oligopoly and so are NOT in position to exploit their customers or their labor either.
.
===
.
Today, AFAIS, the real exploitation is via bank owners (in India, it is bank controllers and not owners), land hoarders and urban planners , and elitemen plus tax-law-drafters
.
The banks manufacture rupee3 aka M3 from thin air. The gold standard ended in 1951. The difference between interest they charge on loan and interest they pay on deposit , minus administrative costs , minus genuine defaults , is all "exploitation". And it is due to "planned defaults". In the planned defaults , the loan giver in bank knows that this loan he is giving wont come back. He gives loan because he is getting favor from loan taker, SOLUTION? Solution is Right to recall over RBI / SBI chiefs. (pls see chap-9 and chap-23 of http://rahulmehta.com/301.htm )
.
Next is land hoarders, who have nexuses with urban planners. They artificially create scacity in urban land and increase the prices. This increases the gap between wholesale prices and retail prices. The land prices have increased to over 10 times to 20 times the "natural" cost value.. How do I say 10 to 20 times?
.
Lets take Ahmedabad. Its are is 460 sqkm . Lets take a barren land or agricultural land of 460 sqkm with same amount of water supply that ahmedabad gets by rain, river etc. Cost of such barren land would cost almost zero and if agricultural, then it will cost at most Rs 400,000 per acre i.e. Rs 100 per sqm.
.
Now lets say we create a COPY of Ahmedabad MINUS all private buildings. i.e. say 60% of land is kept for private use and is to be sold. And on 40%, a copy of Ahmedabad is created --- same road layouts, same gutter layout, same water pipe layout, same water tanks, same electricity cabling etc. And we put carbon copy of all govt buildings such as govt schools, govt offices , courts , police stations etc. Now , we keep a constraint that --- the 60% of private land should be sold at a price that is equal to the cost of creating carbon copy of Ahmedabad in that 40% land. Then would be the cost price of that 60% land? Estimates will vary. But the estimates I got was --- MUCH less than Rs 4000 per meter !!!
.
So even if we take all interest costs, that it will take me 10 years to sell all the land, it is still be,low Rs 10000 per meter. Where as average selling price of land in Ahmedabad is way above Rs 50000 per meter and even much much more !!!
.
Thats because land hoarders and urban planners gang up, and invest minimally in creating new blocks inside vacant land in city and outside city. And so cost of land sky rockets to Rs 100,000 per sqmt
.
Now consider a labor in factory. Say he is getting Rs 200 per day. Six such labor live in a small room of 15 ft * 15 ft and each pay rent of Rs 1000 per month !!! The rent is high because of land hoarders. So IMO, the real person who is exploiting isnt factory owner, but the land hoarder.
.
The elitemen gang up with PM / CM / MPs / MLAs who draft tax-laws gang up and print REGRESSIVE tax law-drafts . eg they will insist on GST / VAT etc and oppose wealth tax minus credits. Pls see chap-25 ofhttp://rahulmehta.com/301.htm for details.
.
=====
.
All in all , the factory owner (or service unit owner or business owner) is no longer the exploiter , as he was 200 years ago , because entry of new entrants is easier which drives down profits. The real exploitation today is via bank controllers , who manufacture rupee3 from thin air loan it to their NPA-secor, the land hoarders and urban planners,
.
====
.
But CPI / CPM insist on IGNORING land hoarders , bank controllers and insist on gunning down factory owners. The CPI / CPM MPs also insist on IGNORING regressive tax law-drafters and they too insist on regressive taxes like GST / VAT and oppose wealth tax !!! All this is because MPs get huge bribes from bank controllers, land hoarders and elitemen who thrive on regressive tax laws.
.
The professors in subject of Political Superstitions (wrongly named as Political Science) also insist on IGNORING role of of Rupee3 manufacturing in politics, role of land hoarding in politics, and role of regressive taxes in politics. The reasons are same ---- they get grants from elitemen.
.
SOLUTION?
.
Solution I propose to activists is that they should meet CPI activists and inform them about these changes in past 200 years , that today, much much "exploitation" comes from land hoarding, regressive taxes , rampant rupee3 manufacturing and not much from factory owners,. And that their MPs and exeprts in subject of Political Superstitions are all liars. And activists should inform them about law-drafts that can used land prices, control rupee3 manufacturing and reduce regressiveness in taxation.
https://www.facebook.com/mehtarahulc/posts/10153038097291922
Marx's "definition" and one of his assertions that "factory owners exploit labor" was true in his days, and isnt false , but not applicable today. Today, real "exploitation" comes from land hoarding and monopolies / oligopolies created by Govt such Urban Planners, Banks , Tax-law-drafters etc.
.
But CPI / CPM MPs and academicians in Political Superstition dept etc get bribes from land hoarders , and so still chase factory owners and ask activists to IGNORE "exploitation" done by land hoarders, Urban Planners , Banks , Tax-law-draftters etc
.
Some 200 years ago, setting factory required govt licenses which were not easy to get (except in USA, where due to RTR and multi-elections, geting licences was easier). And back then , gold was currency and so currency was scarce, And , there were no tools like share markets, where 10000s small persons can come, collect capital and form large factory without many large contributors. And so labor employers were fewer.
.
So "factories" were oligopolies and often monopolies. And so factory owners used this monopoly to over charge customers and underpay labor.
.
Today, it is easier to complete legal restrictions to set up factories and also capital can be obtained from share market. And so number of factories have increased, which is why there is more competition and many factory owners lose out in competition and shut down. Also, via share market, raising capital is easy.
.
So factory owners no longer have oligopoly and so are NOT in position to exploit their customers or their labor either.
.
===
.
Today, AFAIS, the real exploitation is via bank owners (in India, it is bank controllers and not owners), land hoarders and urban planners , and elitemen plus tax-law-drafters
.
The banks manufacture rupee3 aka M3 from thin air. The gold standard ended in 1951. The difference between interest they charge on loan and interest they pay on deposit , minus administrative costs , minus genuine defaults , is all "exploitation". And it is due to "planned defaults". In the planned defaults , the loan giver in bank knows that this loan he is giving wont come back. He gives loan because he is getting favor from loan taker, SOLUTION? Solution is Right to recall over RBI / SBI chiefs. (pls see chap-9 and chap-23 of http://rahulmehta.com/301.htm )
.
Next is land hoarders, who have nexuses with urban planners. They artificially create scacity in urban land and increase the prices. This increases the gap between wholesale prices and retail prices. The land prices have increased to over 10 times to 20 times the "natural" cost value.. How do I say 10 to 20 times?
.
Lets take Ahmedabad. Its are is 460 sqkm . Lets take a barren land or agricultural land of 460 sqkm with same amount of water supply that ahmedabad gets by rain, river etc. Cost of such barren land would cost almost zero and if agricultural, then it will cost at most Rs 400,000 per acre i.e. Rs 100 per sqm.
.
Now lets say we create a COPY of Ahmedabad MINUS all private buildings. i.e. say 60% of land is kept for private use and is to be sold. And on 40%, a copy of Ahmedabad is created --- same road layouts, same gutter layout, same water pipe layout, same water tanks, same electricity cabling etc. And we put carbon copy of all govt buildings such as govt schools, govt offices , courts , police stations etc. Now , we keep a constraint that --- the 60% of private land should be sold at a price that is equal to the cost of creating carbon copy of Ahmedabad in that 40% land. Then would be the cost price of that 60% land? Estimates will vary. But the estimates I got was --- MUCH less than Rs 4000 per meter !!!
.
So even if we take all interest costs, that it will take me 10 years to sell all the land, it is still be,low Rs 10000 per meter. Where as average selling price of land in Ahmedabad is way above Rs 50000 per meter and even much much more !!!
.
Thats because land hoarders and urban planners gang up, and invest minimally in creating new blocks inside vacant land in city and outside city. And so cost of land sky rockets to Rs 100,000 per sqmt
.
Now consider a labor in factory. Say he is getting Rs 200 per day. Six such labor live in a small room of 15 ft * 15 ft and each pay rent of Rs 1000 per month !!! The rent is high because of land hoarders. So IMO, the real person who is exploiting isnt factory owner, but the land hoarder.
.
The elitemen gang up with PM / CM / MPs / MLAs who draft tax-laws gang up and print REGRESSIVE tax law-drafts . eg they will insist on GST / VAT etc and oppose wealth tax minus credits. Pls see chap-25 ofhttp://rahulmehta.com/301.htm for details.
.
=====
.
All in all , the factory owner (or service unit owner or business owner) is no longer the exploiter , as he was 200 years ago , because entry of new entrants is easier which drives down profits. The real exploitation today is via bank controllers , who manufacture rupee3 from thin air loan it to their NPA-secor, the land hoarders and urban planners,
.
====
.
But CPI / CPM insist on IGNORING land hoarders , bank controllers and insist on gunning down factory owners. The CPI / CPM MPs also insist on IGNORING regressive tax law-drafters and they too insist on regressive taxes like GST / VAT and oppose wealth tax !!! All this is because MPs get huge bribes from bank controllers, land hoarders and elitemen who thrive on regressive tax laws.
.
The professors in subject of Political Superstitions (wrongly named as Political Science) also insist on IGNORING role of of Rupee3 manufacturing in politics, role of land hoarding in politics, and role of regressive taxes in politics. The reasons are same ---- they get grants from elitemen.
.
SOLUTION?
.
Solution I propose to activists is that they should meet CPI activists and inform them about these changes in past 200 years , that today, much much "exploitation" comes from land hoarding, regressive taxes , rampant rupee3 manufacturing and not much from factory owners,. And that their MPs and exeprts in subject of Political Superstitions are all liars. And activists should inform them about law-drafts that can used land prices, control rupee3 manufacturing and reduce regressiveness in taxation.
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