Problem

Capitalist speculation


Experimental visualization of narrower problems
Other Names:
Speculation in capitalism
Investment capitalism
Global casino capitalism
Nature:

Speculative investment within the capitalist system may enrich the investors and the financial community, but in so doing it creates economic and political instability with negative repercussions on the welfare of the majority. The evolution of capitalism, in first creating an artificial and non-productive elite class with regard to the ownership of the means of production, tends towards an even greater abstraction of this class from the production process. Speculation may involve overseas and colonial holdings. The double role of commodities and money as exchange value as well as real value reaches its peak in speculation which may alter the exchange value drastically, according to artificially-created supply and demand. A direct result of speculation may be inflation.

Capital that is not dissipated in conspicuous consumption or used for financing land transactions may not be available for industrial uses in developing countries because it is invested instead in speculative commercial undertakings.

Related UN Sustainable Development Goals:
GOAL 16: Peace and Justice Strong Institutions
Problem Type:
C: Cross-sectoral problems
Date of last update
04.10.2020 – 22:48 CEST