Hacking Capitalism

Capitalism is a system that I am currently hacking through my company. When I first started my company called Civichat, I didn't think much about "hacking capitalism." However, as I run the company and explore various books and real-life examples, I have come to realize the significant differences between *freelancing and running a company.

The concept of a company originated from the East India Company as a form of risk hedging, which led to the development of limited liability.

In the context of capitalism, the concept of "r>g" as described by Thomas Piketty in Capital in the Twenty-First Century suggests that surplus assets are directed towards speculative targets. This means that wealthy individuals with assets become even wealthier, while those who rely solely on labor cannot achieve long-term wealth accumulation. This phenomenon is further influenced by factors such as the tax system on investment and labor income and the economic inequality caused by corona, which symbolize the ability of the wealthy to increase their wealth.

The existence of "whales" in capitalism and the impact of globalization on the concentration of wealth further exacerbate the disappearance of the "intermediate producer class" that forms the foundation of democratic political systems, as predicted by Marx. This leads to a polarization between a small number of wealthy capitalists and a proletariat without means of production, resulting in class struggle and potentially leading to revolution. However, I slightly disagree with this view and find Drucker's argument in "Capitalism without 'Capitalists'" more relevant today.

In the context of a capitalist economy, rather than limiting oneself to labor, expanding into speculation (the financial market) can address the problem of structural inequality. I recall seeing an argument that a certain percentage of money in circulation is directed towards speculation and investment, while the remaining percentage is inaccessible to those who rely solely on labor. I wonder if anyone has a source for this claim? tkgshn.icon July 19, 2021 This approach can be seen as a hack of the use value economy, as it highlights that wages are a structural problem rather than a matter of individual effort, and that a significant portion (98%) of money exists in the financial market rather than circulating in the real economy.

Therefore, startups have the opportunity to procure larger amounts of funding by becoming financial products (equity) themselves. This is made possible through risk money, which is why I am happy about it. tkgshn.icon*3 By exploiting the imbalance between false claims and reality, startups can secure funding upfront and deliver results later, effectively hacking the timeline.

In contrast, non-profit organizations (NPOs) do not attract risk money as they do not prioritize profit. As a result, they often face a structural issue known as Jiri Poverty, where technology does not develop if it does not generate profits. However, there is a growing trend of profitable NPO-like entities that aim to address this issue.

Regardless of whether an organization is a for-profit corporation or a non-profit organization, basic expenses such as labor costs remain the same. Therefore, there is a movement in the field of NPTech (NPO's BPO) to standardize back-office operations and other areas similar to for-profit corporations.

Thanks to the financial market, the issue of short-term costs is no longer a significant concern.