Finding numerous flaws within capitalism is feasible, but the underlying cause, trigger, and birthplace of all its shortcomings lie in the wasteful production style. It's about producing a lot, so you consume a lot, and that's how the system keeps running. Since the system is inhumane, it crashes against a wall every decade or so. When the global economic system crashes against this wall, the unprepared get caught off guard, those with expenses exceeding their income falter, and the weak are eliminated. New players enter the scene, and the gears of the economy continue turning with new capital owners. It's a vicious cycle.
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The world economy underwent a major transformation with the pandemic. Perhaps everything we experienced, and everything that happened, was a dirty game initiated by the two-legged global capitalists (the devils), possibly to cover up the collapse of a global economic system that had already fallen pre-pandemic or to pursue their own interests. We need to look at who ended up on top. In which sectors did certain individuals profit? Who suffered losses? Who emerged anew?
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Michael Roberts, who worked as an economist for various financial institutions in London for over forty years, asserts that capitalism is a flawed mode of production and that this production mode will never allow harmonious and stable development of productive forces on a global scale to meet people's needs.
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Our economics expert, with two books in the field of economics, explains the reason behind the 2008 global financial crisis and the subsequent deep global stagnation in capitalist production as follows: "At a certain point, bank debts and mortgages, along with their (globally bought) mortgage-backed derivatives, couldn't be converted into profits for capital in productive sectors anymore, and the downturn began, leading to income withdrawal. The grand Ponzi scheme of financial speculation soon collapsed. The collapse in banking and immense credit contraction spread across Europe. The credit contraction hit Spain and Ireland's real estate markets, Greece's overly leveraged real estate and corporate sectors."
Greece was brought to its knees. On one hand, the reckless borrowing of Greek companies, especially in real estate, and on the other hand, the capital flight and tax evasion by these same companies and the wealthy, meant that the Greek government lacked the revenue necessary to manage an economic collapse and meet the demands of its creditors such as French and German banks.
Therefore, the Euro crisis was a severe crisis of global capitalism. The weaker countries of Europe were hit even harder by this crisis since they were reliant on investments coming from central countries like Germany and France. However, European leaders weren't particularly eager to support weaker economies.
The cause of the 1929 crisis was the stock market crash; the 1974-5 global crisis was due to the rise in oil prices; and the 2008-9 Great Recession stemmed from the real estate crisis. This means that crises have underlying general causes that are waiting to be discovered.
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"Today, especially the US, is the dominant hegemonic capital in the world. Every 60-70 years, capitalism enters a depression, which is distinct from a 'normal' downturn/crisis. This happened in the 1880s, in the 1930s, and is happening today. The reason for the omission of profitability in discussions about crises is both ideological and theoretical. A profit theory based on the exploitation of labor isn't taken into account."
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The renowned economic historian Professor Dr. Mehmet Genç explained the difference between capitalism in Europe and the Ottoman economy like this: "In the Ottoman mindset, the conception of economics was primarily centered around meeting needs. The aim and legitimacy basis of economic activity was to satisfy the needs of the state and all layers of society. Meeting the needs of the state and society as a whole was the target of economic activity. This means that there was no competition in the economy during the Ottoman period; there was solidarity, and the rules of the economy were determined by society's needs. This humane system lasted for 600 years. In today's global economic system, production isn't based on necessity. The system is based on crushing competition, not cooperation, and it's excessively focused on profit. That's why it's not humane. And because it's not humane, it crashes against a wall every ten years."
