Dark markets are fully intended to distribute the quantum we call "risk." This quantum is distributed algebraically by design. It is a business plan with the derived detriment producing a benefit on one side of the equation, which derives the detriment--the risk of default--on the other side.
Businesses that use this plan claim that the equation is descriptive--it predicts the detriment and thus the profit derives from a temporal sequence that is an undetermined, ontological risk. If, for example, your home is foreclosed at half its purchase price, and Bain capital is there to buy it at "fair value," the invisible hand is at work deriving value from the detriment, not private equity by deliberate design.
Since the business plan is not prescriptive, the risk-value is exculpated. Private equity's liability is limited and the process of "creative-destruction" verifiably conforms to the legitimate ontology of risk-reward. Value (and risk) is accumulated and distributed through the fair, equitable, and easily verifiable means of market mechanics wherein everyone freely participates with full capacity to self-determine.
An invisible hand derives the risk by default--by operation of the plan--and thus the need (for both labor and capital) to consolidate to protect the "self" from the accumulating risk. Without the accumulated capital (the full capacity) to "make" the market, those who lack full capacity "take" the risk according to plan.
Since, unlike a free market, not everyone participates with full capacity (operating with the full, proprietary risk of the prudent regulator, as discussed in previous articles), the result is a dis-integration of risk-reward. The coefficiency loses its verifiable legitimacy and must be managed with ideological identity (see the previous article).
The invisible hand of the business plan becomes fully visible and verifiable through inflation and unemployment. The ability to pay the economic rent (your level of participation) identifies what class you are in. It is then the job of the central bank (the Fed) to provide the liquidity (the means to pay the rent) necessary to finance the derived value since the value of labor (wages and salaries) is being accumulated at the top of the income scale by extension of the rent the central bank has provided.
By extension of the rent, not only does labor finance the wealth of the nation but has to rent it back to pay the debt. The quantum "risk" eventually gets so huge that the potential for profit (default) on the other side of the equation is all but uncertain.
Self-interest, according to capitalism, drives the profit and, on the other side of the equation, our productive capacity (providing supply the vast majority struggles to buy without debt, or detriment, which cures shortages). The intrinsic motive, the power, to satisfy the self (taking on more debt than equity, for example) is, essentially, the quantum (the measurable risk) referred to as the "invisible hand."
When labor takes the risk that capitalism makes in the dark (unemployment), it is all derived from self-interest. Capital is not culpable because the risk of loss is fully assumed (derived by the invisible hand) when participants enter the marketplace and pay rent to occupy its space.
Capitalism does not selfishly confiscate value form labor and force it into bankruptcy. Labor, instead, selfishly tries to be paid more than its fair, market value, which is why, according to capitalists, it is necessary to bust unions. Collective bargaining distorts free-market prices (inflation).
Labor value, rather than having been expropriated, has been self-deprived (self-determined) by trying to reduce the rent the market demands to create more value than it puts in. (The extra value created is "the capital"--the risk, or the rent, necessary to expand the pie and reduce shortages while, at the same time, on the other side of the equation, creating jobs, which demand the profit and, in turn, the need for productivity that "the capital" derives from value demanded fairly and equitably in the marketplace). To correct for this selfish error in judgment (to be expected of the "great unwashed" who think it is wise to operate without elite identity), the free market (the invisible hand) naturally adjusts in everyone's self-interest (unemployment).
It only appears, then, that capitalism causes the double detriment of inflation and unemployment, and those who think otherwise, conservatives are sure, will always be "left" in the dark, unenlightened by the timeless wisdom and objective reality of a right-wing identity.
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