Rationalizing the Risk
Post-industrial economics is running out of political options.
Capitalism is running out of space to control the probable risk over time. Classical economists referred to this as the declining rate of profit. As the profit expands at the margin the capacity to maintain it is diminished. The result is a predictable oscillation of boom and bust technically indicated by the ratio of debt-to-equity.
To exist indefinitely, the profit has to come from somewhere. As debt accumulates over time, and the capacity to pay it depreciates, risk-value is progressively reduced to slavery, which capitalists say is too risky to maintain. The result is what classical economics calls a subsistence wage, which is a marginal existence that naturally demands debt to expand the profit at the margin and hedge what then becomes inflationary risk.
By trying to expand the margin indefinitely, like we are doing now, the result is no-wage inflation–slavery, which is too risky to exist so it must be oscillated and ratiocinated, occupying space over time with liability accruing to “the person” called the corporate body, which does not exist.
Value produced and accumulated at no wage (rent free, which does not exist) inflates the risk proportion. No, it does not add risk! Its probable value is imperative and exists on demand. It is necessary to contain the demand (what naturally obtains, immediately occupying space over time) but eventually the ratio of debt to equity is so excessive (the “excess capital” we have now, for example) that, with a big boom, it busts the container.
Logically, since space exists indefinitely, the capitalist tries to expand the container indefinitely. Risk is oscillated and ratiocinated over space and time, but instead of spreading the risk it is being accumulated (consolidated into a collective-risk container) to manage it. This rational process of exacting the risk is self-retributive because, as the conservative philosopher Hobbes pointed out, risk is a limited quantity. By accumulating it, eventually you have to take what you make. Occupying all the available space, you get what you ask for.