@JPB,
Quote:Rather than selling his work to the market he's selling his time to the factory. The problem with your model is that without the capitalist there IS no factory to purchase his time.
In a modern day setting you have the small shoemaker trying to compete with Nike, or the corner drug store competing with Walgreens. I understand your concern and share it to a large extent, but I don't think you union (socialized production) model works in the long run.
So we need the capitalist?
When the capitalist show up in Nicaraguan and tell the farmer "you need the capitalist" and the Nicaraguan says "No thanks" the capitalist sends in an army to terrorize the Nicaraguans. The Nicaraguans become Sandanistas to fight the capatalist. The capitalist wins because the capitalist has the money.
What the capitalist is after from the Nicaraguan is his surplus value. How much surplus value is being extracted from people world wide by the capitalist? And is this model working for them?
We could ask them but they will never be able to tell there side of the story and there story is the story of Deathsquads, assasination, torture, starvation, sabatage of democracy, and endless war.
The model works for you (us) and for the people from your vantage point because you are living in the spoils of over half the worlds surplus value acquired by the manifestation of the greatest evils man could practice on another man.
That is a fact. I can back it up with volume after volume
http://en.wikipedia.org/wiki/Surplus_value
Surplus value is a concept created by Karl Marx in his critique of political economy, where its ultimate source is unpaid surplus labor performed by the worker for the capitalist, serving as a basis for capital accumulation.
The German equivalent word "Mehrwert" means simply value-added (an output measure of the net increase in product wealth), but in Marx's value theory, the extra or surplus-value has a specific meaning, which is not the new value added to the output of products, but rather the amount of the increase in the value of capital upon investment, i.e. the yield or increment in value, regardless of whether it takes the form of profit, interest or rent.