The Impact of the Capitalist System on People's Economic Practices, Really?

[lizarder]

The capitalist economic system is a system in which private business actors own and control property according to their interests. An important factor of the capitalist economic system is the profit motive according to Adam Smith's theory. In his book entitled "Wealth of Nation", he explains the concept of laissez faire and the principles of the invisible hand.

Capitalist Illustration Image

These two concepts are the basic framework for the formation of the capitalist system theory, which includes the value of goods and services, structure, consumption prices, and production prices. There is a shortage in the capitalist economic system, because their goal is not to see the impact of consumers, but rather to the value of profits from the products and services issued. Thus it seems that the capitalist style will destroy the order of life of the little people, in making purchases, be it products or services.

Let's see how they work, in the area where I live, currently intensively promoting various types of houses, where they work with banks as third parties. However, in this case, the Bank is authorized to determine the prospective buyer, based on consideration of the criteria, employment status and agreed terms. However, it must be understood that Real Estate is different from Real Property, both which can involve the government in its management and those related to financing and settlement as building ownership.

Terms and Rough Figures For the Purchase of a Single House

1. Time period
This relates to the time period agreed upon by both parties (the Buyer of the House and the Bank), the longer the agreed year, the greater the profit received by the third party.
Because the buyer will continue to deposit every month according to the current year's agreement.

2. Advances
The amount of the down payment that must be deposited depends on the agreement between the home buyer and a third party (bank), taking into account the conditions they provide, the smaller the down payment, the greater the monthly deposit.

3. Monthly Installment
Installments determine the price of the house, because the smaller the agreed monthly installments, the longer the ratio of the specified repayment period, so the more expensive the house price.

• Term of 20 years

• Down Payment $5,370.21

• Monthly Installment Ratio $134.26

Let's count?

20 Years X 12 Months = 240 Months
1 Month Deposit $134.26 X 240 Months =$32,221.25
Down Payment $5,370.21 + 240 months Deposit $32.221.25 = $37,591.46

Total for one house $37,591.46

In fact, if we buy land and build our own house, without using their system, the money we need is about $16,781.90

So, if the term of the agreement is long (Current Year), then the third party will automatically benefit $20,809.56, because the monthly deposit will run according to the year and the agreed down payment.

This is an example I got in the field, a few weeks ago?
Actually, I have conveyed this example earlier in this post Why the european housing market is about to crash, But because I think this is interesting, then I try to recreate my post?

This looks pretty crazy, the way they rob people of financial freedom, where for a need (a house), people have to spend that much money and not to mention talking about monthly deposits during the agreed-upon agreement. Of course, the consumer has the authority to buy or not, but if it is considered a house is a necessity, what can they do?
In the context of Economics, there is nothing wrong with this capitalist system. But there should be other ways that can be done to not be burdened by the system, so that people are not trapped in something that is not necessarily capable of being done.

Now I want to combine buying a house using this system, with investing in crypto and bitcoin. Maybe this can be a reference, especially for those of us who are in this forum. If people currently choose to buy a house, then they have to make a down payment of $5.390,11 as a condition and they continue to deposit a monthly fee of $134,75 for the current period (20 years).

Just imagine, if we invest $5.390,11 in bitcoin or in altcoins, if the return on investment is maximum and we do it at the right time, then to make one house no more than 1, 2 or 3 years running time, without having to wait for repayment annual fees that run according to the agreement. Of course, the investments that we make also have the impact of risks and losses, if someone does not understand the pattern and the right time to enter the market, this problem is related to knowledge, which may be learned before starting an investment.

But that doesn't mean the risks are unavoidable. Because there are many things we can learn before starting, be it investment knowledge, strategies and how to enter the market at the right time. Because what I see, the pattern of buying a house that they do, is no less than the danger posed by investment, meaning that both processes have the same risk, only in different conditions and portions. Oddly enough to understand, if we want to get involved in such a home buying system, despite the opportunity for change, we can do so through investment.

Whereas in Crypto systems in general we are used to determining the direction of freedom we want to do. Instead I think, cryptocurrencies are a way out of a problem they can't solve, towards housing needs for low-income people. By making the right investments, we will save ourselves from problems that are considered incapable of becoming easier. Technology that has developed, will pave the way for everyone who wants to learn to do something new.

Why did I mention cryptocurrency and not specifically Bitcoin, because the concept is more accessible to the lower classes, because talking about cryptocurrencies in general, it has a cheap purchase value, but the return at a certain time is quite maximum.

[jackg]

It's a long standing scenario that houses are normally built for a lot cheaper than what they're sold for (I'd say its particularly in the UK and the nordics but the US might have a higher margin if they live in wooden houses). I've seen it be complained about a lot online even before now.

If you got a social housing system where people put money into the workers to develop a skill related to building houses and they started doing that, they'd stand to gain a very high profit from it. The problem is that most property construction is dominated by a few industries and banks and the people who have skills can already build their houses cheaply.

Also, you can buy fractions of bitcoin, you don't have to buy a whole one and if you don't know what you're doing, a bitcoin investment is the best place to put your money while you learn (aside from diversifying into stocks too so you can buy more bitcoin if it drops - or at least not panic sell your bitcoin).

[Ucy]

Where I live and other similar places the poor especially are smart enough to solve the problem with the way they charge customers. If you are rich or look rich they charge you higher, if you are poor they charge you less, then they use the extra amount they got from the rich to compensate for the lesser charges to the poor and still remain profitable.

[Ucy]

Where I live and other similar places the poor especially are smart enough to solve the problem with the way they charge customers. If you are rich or look rich they charge you higher, if you are poor they charge you less, then they use the extra amount they got from the rich to compensate for the lesser charges to the poor and still remain profitable.

We all faces so many problems in our lives - the problem of rich people is different.
But what is not good are the people who create problems for the other. The dirty and sick mind are the most problematic of all and may we be safe from all this.

Hope it's not the poor you are calling dirty and sick.

 This looks kind of exploitative but it's not because the poor sellers typically sell things incredibly cheap compare to what is obtainable in big stores where the rich should be going to but prefer to compete with the poor or middle class for cheap things in businesses owned by the poor... It's hard to survive without the poor. By the way, not the kind of poor you see on TV begging for alms and looking wretched .. I call those the needy which you can find once in a while but are typically rare to see. The poor sustain themselves pretty well and can live without the rich but the rich can't live without them.

[Fortify]

The capitalist economic system is a system in which private business actors own and control property according to their interests. An important factor of the capitalist economic system is the profit motive according to Adam Smith's theory. In his book entitled "Wealth of Nation", he explains the concept of laissez faire and the principles of the invisible hand.

Just imagine, if we invest $5.390,11 in bitcoin or in altcoins, if the return on investment is maximum and we do it at the right time, then to make one house no more than 1, 2 or 3 years running time, without having to wait for repayment annual fees that run according to the agreement. Of course, the investments that we make also have the impact of risks and losses, if someone does not understand the pattern and the right time to enter the market, this problem is related to knowledge, which may be learned before starting an investment.

With this last paragraph it would seem that you don't necessarily understand or translate the all the information you've gathered from the concepts of Adam Smith across into the cryptocurrency realm. It was never about investing, it was essentially just gambling. Investing means you can look at a huge swath of available historical information and make a balanced decision. The people at the point you describe never knew that Bitcoin would double in value, nevermind multiply ten fold - because Bitcoin had simply only been around a few years which is not a sound basis for making a judgement of it's value. If that same amount was invested at the height, you would have lost 60%+ of the value of your money so far, but the same rabid crowd were still preaching that it will keep going back upwards.

[Stella Mese]

I found the same case as the OP wrote.
Even that has been going on for a long time.
almost all housing complexes in my country implement this system. where employees, civil servants, and workers who have a fixed salary. those from these circles prefer to buy a house in housing with the same system as written by the OP.
maybe they think instead of renting a house, it's better to pay off the house. but I think they are wrong because the installments they deposit every month are actually 3x the rental price. in the sense if they prefer to rent a house. then in 2-3 years they can raise money to build a house. but they actually prefer to buy a house at an expensive price with the installment system. even the mortgage period is usually more than 10 years. these people are tempted by advertising. that they only need to pay a down payment and the house is yours.

even though it's just a promotional trick. because in fact as long as the installments have not been paid off. then the house is not yours. and when you are unable to pay the installments then the house will be taken back. and the money you deposited for the mortgage so far will be forfeited. in fact now many people do that.

[coupable]

The capitalist system is a well-established system in contemporary history and has pillars that make it the most widespread system in most societies and countries. And since, like other economic systems, it divides societies into classes, each class will impose a certain social status on it.
Since the difference between the two privileged classes in the capitalist system is vast, the poor will constantly seek to imitate the rich class in terms of consumption since they are unable to imitate in the productive aspect.
This opens the door to many bad practices that can be carried out by the poor class. On the other hand, the capitalist system gives room for greed, greed and inventing tricks to get the largest amount of money.

[davis196]

In fact, if we buy land and build our own house, without using their system, the money we need is about $16,781.90

How do you plan to build a house? On your own or hiring other people to help you?
A part of the price difference between 37K USD and 16K USD is the price of the labor, which has to be used for building a house.
When you build your house on your own you don't include the value of your labor in the final cost.
Many people simply don't have the skills and time to build their own houses. Working 8 hours a day and working on building your house after getting back from work seems like hell.
It's easier to get a mortgage and pay monthly installments, while living in that house and working in your regular nine-to-five job.
Most people would prefer the easier but more expensive solution. 

[Moneyprism]

Where I live and other similar places the poor especially are smart enough to solve the problem with the way they charge customers. If you are rich or look rich they charge you higher, if you are poor they charge you less, then they use the extra amount they got from the rich to compensate for the lesser charges to the poor and still remain profitable.

to be honest I don't think it's fair.. imagine when you have to buy something but are charged more for it,, and this is experienced by most tourists in developing countries,, sometimes local people charge very high for their goods or services,, and in the end , most of these tourists do not want to return to the country because they are often cheated

[Ucy]

Where I live and other similar places the poor especially are smart enough to solve the problem with the way they charge customers. If you are rich or look rich they charge you higher, if you are poor they charge you less, then they use the extra amount they got from the rich to compensate for the lesser charges to the poor and still remain profitable.

to be honest I don't think it's fair.. imagine when you have to buy something but are charged more for it,, and this is experienced by most tourists in developing countries,, sometimes local people charge very high for their goods or services,, and in the end , most of these tourists do not want to return to the country because they are often cheated

I'm talking about poor & rich locals not tourists. The tourist could send the locals to buy things for them at affordable prices. By the way, I do not know how tourist things work because I'm highly focused on local which is enough for me. 

[cabron]

I found the same case as the OP wrote.
Even that has been going on for a long time.
almost all housing complexes in my country implement this system. where employees, civil servants, and workers who have a fixed salary. those from these circles prefer to buy a house in housing with the same system as written by the OP.
maybe they think instead of renting a house, it's better to pay off the house. but I think they are wrong because the installments they deposit every month are actually 3x the rental price. in the sense if they prefer to rent a house. then in 2-3 years they can raise money to build a house. but they actually prefer to buy a house at an expensive price with the installment system. even the mortgage period is usually more than 10 years. these people are tempted by advertising. that they only need to pay a down payment and the house is yours.

even though it's just a promotional trick. because in fact as long as the installments have not been paid off. then the house is not yours. and when you are unable to pay the installments then the house will be taken back. and the money you deposited for the mortgage so far will be forfeited. in fact now many people do that.

That is correct !
And that is okie if he is promoting something which can be beneficial for both the business and the user.
The problem occur when the people are scammed and there is no justice to it - what are your thoughts about it.

Looks like a case where you own nothing and NOT happy. This is happening to almost all countries, theres always a party who will benefit the most especially if it takes more than 10 years to fully pay.

Better be a wise buyers. Installment is usually not good when the house buyer has to pay the installment coming from his monthly income.  A wise buyer will look at it as opportunity to earn when the house is already built an can be occupied already. He can rent out the house and the pay goes to the monthly installment.

[stompix]

Hihihi, this is just funny.

So after bashing capitalism for three paragraphs we come to the solution that crypto provides to get out of the system , and that's:

Just imagine, if we invest $5.390,11 in bitcoin or in altcoins,

OP, do you know what investing your money (aka capital) and waiting for a return on your investment is? 

You think you have managed to find the immortal golden goose that forever from now one will get you a golden egg and the price of gold will keep on rising, same with crypto, you think that (hmm, not nice including shitcoins here), you will get the same returns over and over again, year after year and that the $ value will keep being the same.

Just imagine, if we invest $5.390,11 in bitcoin or in altcoins, if the return on investment is maximum and we do it at the right time, then to make one house no more than 1, 2 or 3 years running time, without having to wait for repayment annual fees that run according to the agreement.

Nope

Sep 13, 2021   20,792.36   
Sep 14, 2019   10,345.40   
Assuming your investment 3 years ago with 5.3 now you would have a bit over 10k, and getting the right time, that means gambling, and it's not an investment!

Btw, if people would be able to turn 5k into 30k in 3 years just buy buying some coins, what do you think would happen to the prices of houses when everyone has millions in their bank accounts? 

[justdimin]

In fact, if we buy land and build our own house, without using their system, the money we need is about $16,781.90

How do you plan to build a house? On your own or hiring other people to help you?
A part of the price difference between 37K USD and 16K USD is the price of the labor, which has to be used for building a house.
When you build your house on your own you don't include the value of your labor in the final cost.
Many people simply don't have the skills and time to build their own houses. Working 8 hours a day and working on building your house after getting back from work seems like hell.
It's easier to get a mortgage and pay monthly installments, while living in that house and working in your regular nine-to-five job.
Most people would prefer the easier but more expensive solution. 

House is just one example but in that case, you could literally build an entire house all by yourself if you have the money for it. Think about how much you would save from paying others, and think about how much you would lose from working yourself for someone else and then compare the two, if hiring others is cheaper than you do that.

The idea is that if we all built our own houses then it would be cheaper, if we all worked together to build houses for each other than it would be cheaper, but when banks start buying the houses all around you then your house worths a lot but then all their houses worth a lot, so they are turning shelter into something people can't afford, and that is not acceptable and needs government intervention.

[Findingnemo]

Rich people make money from their money, that is how the system was created. Every economic structure is there to support the rich or someone who js sitting at the top but atleast this new era opened the gate for anyone to become one among the top tier like billionaires by executing their ideas and forming the company or simply selling their ideas even.

[Gayong88]

Why did I mention cryptocurrency and not specifically Bitcoin, because the concept is more accessible to the lower classes, because talking about cryptocurrencies in general, it has a cheap purchase value, but the return at a certain time is quite maximum.

The capitalist system has already taken shape and it is only a matter of time when people will adapt to it. However, there are actually more reasons why people choose capitalism for their economic system.

Consider the fact that capitalism limits people's ability to have the amount of currency they need. It might be too early to start talking about the impact of cryptocurrencies on the global economy, but there are signs that things are heading in a positive direction and maybe, in time, cryptocurrencies can help us get out of the chains of the capitalist class system as you say.

[lizarder]

With this last paragraph it would seem that you don't necessarily understand or translate the all the information you've gathered from the concepts of Adam Smith across into the cryptocurrency realm.

This is only a piece of knowledge that we can share in real life, this concept clearly has positive and negative values in practice, and not everyone likes or dislikes the concept, so let the choice be the responsibility of each individual.

Investing means you can look at a huge swath of available historical information and make a balanced decision. The people at the point you describe never knew that Bitcoin would double in value, nevermind multiply ten fold

Technical talk can be learned according to one's preferences before getting further involved in investing, that's why a more systematic and measurable introduction to this problem is needed, so that people can know the functions and the best way to invest in bitcoin.

Because Bitcoin had simply only been around a few years which is not a sound basis for making a judgement of it's value. If that same amount was invested at the height, you would have lost 60%+ of the value of your money so far, but the same rabid crowd were still preaching that it will keep going back upwards.

Then if not bitcoin as a basis for consideration in investment decisions taken, what can we provide another example in your opinion?
The problem now is not that bitcoin has been around for several years running, but the value of investing in bitcoin is much better than any other investment system.
As for investing at the highest price and losing 60% as you mentioned, it is just a technical matter to enter the market under the right conditions. I'm also less sure that anyone would lose investing in bitcoin, if that complete understanding is known, either how to enter the market or buy at the right time.
That's why I say investment requires knowledge, does not work according to a narrow understanding, bitcoin is said to be good and perfect because of the long process they have gone through.

From what angle is bitcoin being harmed and what big problems should we be afraid of?

Hihihi, this is just funny.
So after bashing capitalism for three paragraphs we come to the solution that crypto provides to get out of the system , and that's:

It's just improvisation before getting to the actual point of discussion, does this look funny and ticklish. Grin Grin
Because basically I'm the type of person who likes humor before getting more serious into the discussion.

OP, do you know what investing your money (aka capital) and waiting for a return on your investment is? 

You think you have managed to find the immortal golden goose that forever from now one will get you a golden egg and the price of gold will keep on rising, same with crypto, you think that (hmm, not nice including shitcoins here), you will get the same returns over and over again, year after year and that the $ value will keep being the same.

I prefer to take two pieces at once, the golden goose and the egg, because it will breed in the future  

That's why we have to name bitcoin golden goose in quotes in our discussion, whereas golden egg can be classified under other cryptocurrencies in general.
If the use of both can be done well, appropriate adjustments to the target when entering the market and using a measured strategy in investment, it is not impossible that investment is a step out of the capitalist system.
In the end we can conclude that bitcoin is the best source to run investments for now.
To be more convincing, I have accurate evidence of bitcoin travel for more tangible benefits for me Bitcoin Changes Lives, Touches Non-Formal Education for Underprivileged Children

Btw, if people would be able to turn 5k into 30k in 3 years just buy buying some coins, what do you think would happen to the prices of houses when everyone has millions in their bank accounts? 

Since this is a discussion about the house as a place to live, it can be concluded that there is almost no income value from previous purchases, because basically a residential house is a dead asset that has no income value.
It's not like people turning 5K into 30k in buying some coins in the next three years, as long as the coins purchased have good potential value and movement.
So it can be concluded that the benefits obtained will be maximized in the future, in accordance with the involvement in the investment taken.

<snipe

Everyone should have the opportunity to choose financial freedom, without being compartmentalized in one or two systems.
If the opportunities we have are greater in the cryptocurrency space, why not make this a solution to exit any system.
Try to think big to produce more tangible benefits in our own lives.
Because if we don't change, then who else should we give this responsibility to?


CONCLUSION

That the opportunity to get out of the capitalist zone is one's choice in taking financial freedom actions, Bitcoin and Cryptocurrency are the best choices today, if we are able to maximize and dare to take opportunities.
Comfort zone is not an option for people who are starting to learn bitcoin, because speculative and risk cannot be ignored in this space either.

[Davian144]

This is only a piece of knowledge that we can share in real life, this concept clearly has positive and negative values in practice, and not everyone likes or dislikes the concept, so let the choice be the responsibility of each individual.

Every science has its uses and also shortcomings when it is practiced in everyday life. As for the impact of the capitalist system on the economy, I think the impact is more positive than negative, as mentioned on the Investopedia website, the capitalist economic system has a positive impact in the form of increasing innovation and people's prosperity. So it is of course very clear that people will prefer it because of the innovation that is better in the economic sphere.

Technical talk can be learned according to one's preferences before getting further involved in investing, that's why a more systematic and measurable introduction to this problem is needed, so that people can know the functions and the best way to invest in bitcoin.

As for how to invest in Bitcoin, I think there has been a lot of exposure on several websites that can be read by everyone now. Likewise for a further introduction to Bitcoin because everyone who does not know Bitcoin further will definitely find out about Bitcoin first before finding out how to invest well in Bitcoin.

[stompix]

I prefer to take two pieces at once, the golden goose and the egg, because it will breed in the future  

Yeah, and you will end up food poisoning the obese goose you're forced to make 10 eggs a day, we all know how this ends.

Since this is a discussion about the house as a place to live, it can be concluded that there is almost no income value from previous purchases, because basically a residential house is a dead asset that has no income value.
It's not like people turning 5K into 30k in buying some coins in the next three years, as long as the coins purchased have good potential value and movement. So it can be concluded that the benefits obtained will be maximized in the future, in accordance with the involvement in the investment taken.

Nope, no way I'm letting you avoid this question.
You presented this as a solution for everyone to ditch loans and invest in Bitcoins because in 5 years they will turn 5k into 30k, you words not mine:

Just imagine, if we invest $5.390,11 in bitcoin or in altcoins, if the return on investment is maximum and we do it at the right time, then to make one house no more than 1, 2 or 3 years running time, without having to wait for repayment annual fees that run according to the agreement.

So again, I'm asking you if this would be possible, why would anyone sell you a house for 30k when he invest 5k and get 30k by doing nothing?

Why do you think inflation happens:
People have more money, there is a limited offer for their demand, and prices skyrocket! The exact same scenario will happen in your example, who will buy the land work to build the house, and do all this when they could simply turn 5k into 30k in 3 years with no work?

Just as in order to make a profit from bitcoin somebody must buy that from you, the same happens with a house, it's not a dead asset as you have to buy it from somebody, just as how you're unwilling to sell your coins now for 10k a piece that guy won't sell you house for 30k.

[lizarder]

Yeah, and you will end up food poisoning the obese goose you're forced to make 10 eggs a day, we all know how this ends.

And I don't expect an ending like you know, but I want to see a beautiful ending for a fat goose laying ten eggs a day, because honestly I don't want to poison them and end up just dying.

Nope, no way I'm letting you avoid this question.
You presented this as a solution for everyone to ditch loans and invest in Bitcoins because in 5 years they will turn 5k into 30k, you words not mine:

Actually I do not want to avoid, but in fact you have assumed.
It seems I didn't mean that, more specifically I didn't mention the loan you meant.

So again, I'm asking you if this would be possible, why would anyone sell you a house for 30k when he invest 5k and get 30k by doing nothing?

Its nature is more to companies that deal with housing problems, so people are forced to follow their rules, and of course the purchase becomes the burden and responsibility of the buyer, if they take this route to buy a house.

Why do you think inflation happens:
People have more money, there is a limited offer for their demand, and prices skyrocket! The exact same scenario will happen in your example, who will buy the land work to build the house, and do all this when they could simply turn 5k into 30k in 3 years with no work?

This is where the real problem arises, the person you are referring to also does not fully understand how to invest in bitcoin, even the people around me are not very familiar with bitcoin, so the decision to buy a house prefers this way.
What needs to be underlined is that the company is the first party that owns the capital and simultaneously builds the house, while the second party is the bank as the guarantor for the purchase of the house.

Just as in order to make a profit from bitcoin somebody must buy that from you, the same happens with a house, it's not a dead asset as you have to buy it from somebody, just as how you're unwilling to sell your coins now for 10k a piece that guy won't sell you house for 30k.

There's no need to buy from me, and I'm sure you misunderstood the conversation we're having, or I don't quite understand the content of your question.
This is to be straight and not misunderstood, I mean the purchase of a house is a purchase from a private party, they are investors who build houses, while the buyer is free from anyone, but there is an agreement with a second party as a guarantor.
So, I mean houses as dead assets, because they buy houses to live in, not to resell as the first party did.
Well, on this basis I think people should learn more about bitcoin investment, when the investment they plan goes well, then to build a house there is no need to follow them, but we can build our own with the size and model we want.

My focus is here

So the point of my post is buying a house as a place to live not for a business and that's why I say if someone invests in bitcoin at the right time, then there is no need to buy a house from them (the company).
Because we can build our own according to the wishes and sizes we want

[Gyfts]

This looks pretty crazy, the way they rob people of financial freedom, where for a need (a house), people have to spend that much money and not to mention talking about monthly deposits during the agreed-upon agreement. Of course, the consumer has the authority to buy or not, but if it is considered a house is a necessity, what can they do?
In the context of Economics, there is nothing wrong with this capitalist system. But there should be other ways that can be done to not be burdened by the system, so that people are not trapped in something that is not necessarily capable of being done.

The thing is, no one is entitled to housing the same way no one is entitled to inherently benefit from a capitalistic system. In fact, there's a lot of "losers" in the capitalism system. That doesn't mean communism or socialism is the alternative answer. I don't consider the burden of having to sustain yourself through food, water, and shelter to be a burden that's attributable to capitalism. It's packaged in as part of the deal with being a human.

Only in a utopia would people not be burdened by the system, and that's unattainable.

Not a quote from me, but I borrow from it loosely:

Socialism is a great idea, wrong species.

It works great if we're all mindless insects without any desires to exceed past the norm.