May Day Reflection: Break the Capital Logic and Hold Scarce Assets to Win the Future

Labor Day is approaching. This holiday originated from the large-scale strike initiated by workers in Chicago, USA, on May 1, 1886, in their struggle for an 8-hour workday.

Every time this season comes, there are always some economists who propose the idea of abolishing labor laws and implementing a completely free employment system. However, we need to recognize that economic theories often reflect specific positions. Economists and opinion leaders are no exception; their viewpoints are always backed by certain biases. Even if they try to conceal them, as long as they express their opinions, their positions will be laid bare.

The positions of these economists usually lean towards capitalists or business owners. This brings to mind a poignant comment by a famous writer: "Some people may be employed by a single capitalist, but in reality, they serve all capitalists. Therefore, they behave submissively towards all the rich and aggressively towards all the poor. It is precisely because they do not know who their true master is that they show submission to all the rich, which also proves that they actually belong to all capitalists. Even when they are not supported by anyone, hungry and emaciated, turning into wild dogs, they will still be submissive to all the rich and roar at all the poor; it is just that at this point they are even more unclear about who the master is."

The argument that a 5-day, 8-hour work system would lead to trade wars or even hot wars is unfounded. On the contrary, excessive overtime and overproduction are the reasons that drive capitalists to seek to expand into overseas markets, which ultimately led to the global colonial wars of the 17th to 19th centuries.

Human production can be simply divided into three stages:

The first stage is self-sufficiency. People produce what they need to meet basic needs and do not compete with others.

The second stage is production to meet the needs of others. For example, a person may have good skills in making cakes, and their products are widely welcomed, even sold overseas. As long as there is demand, production will be expanded until the market is saturated.

The third stage is production for profit. At this point, producers have become the owners of multinational enterprises. They no longer care whether their products are consumed; as long as they can make a profit, they will continue to produce and even expand production capacity. If market demand is insufficient, they will take various measures to stimulate consumption, such as using force to open up markets, lobbying for legislation to mandate consumption, or suppressing other competitors.

There are three obvious questions here:

1. Production aimed at profit will inevitably lead to overproduction and excess supply.

Second, financial credit will accelerate this process.

Thirdly, it was the overproduction in the third stage that triggered trade conflicts, wars, and imperialism.

The third stage is the mode of production of capitalism. In this model, capitalists are like speculators chasing hot trends; they swarm in and ramp up production as soon as they see profit.

The result is often oversupply, and most products ultimately return to zero value.

This situation is similar to the issuance of certain digital assets: the most valuable ones are often strictly limited, and scarcity brings value.

Blindly expanding production is like chasing trends; it seems that wealth is within reach, but in reality, it quickly depreciates due to over-supply.

Capitalists produce for profit, which is no different from speculators chasing hotspots.

Interestingly, both are zero-sum games. The zero-sum competition of the capitalist mode of production is what modern economics generally recognizes as overproduction, that is, producing goods that cannot be sold, ultimately resulting in losses.

The key turning point lies in the transition of the mode of production from the second stage to the third stage, with the core difference being whether it is "for people" or "for money".

Before the second stage, production was still human-centered.

With the start of the three stages, production has become money-based.

This raises a philosophical question: Is man an end or a means?

In the capitalist mode of production, the answer is clear: people are the means to achieve profit.

Therefore, money has transformed from a tool that satisfies human needs into the ruler of humans.

People have become tools for the appreciation of money, becoming labor.

Becoming labor is actually worse than being real labor.

After all, the real labor force, like livestock, does not have to spend their own money on food and accommodation, while workers need to cover their own expenses for food, housing loans, entertainment, and so on, all to create more profit for their employers.

What capitalists fear the most is that workers will stop working. Because once everyone stops working, no one will create profits for them.

Therefore, it is a terrifying thing for capitalists when workers achieve financial freedom.

If everyone became financially free, who would continue to work for others?

Therefore, promoting the idea that everyone can live off profits without working like capitalists is mostly a misunderstanding and a means of harvesting.

The purpose of those who teach wealth-building methods is often not to make you rich, but to make themselves rich.

This is the real logic.

A reasonable logic for financial freedom may be to exchange ten years of labor for a lifetime of freedom.

If productivity is higher, perhaps a year of labor could exchange for a lifetime of freedom?

So, in the current historical stage, how can ordinary people break through their difficulties?

Actually, you just need to see a bit more clearly.

The world is a cycle.

What has been taken away by capitalists can be reclaimed from another perspective.

We tirelessly discuss the logic of capitalists and capitalist production in order to remind everyone to approach issues from a higher level and dimension.

Since capitalists are ultimately just speculators chasing trends despite their intricate calculations, you, being smart, should understand how to profit in the face of this zero-sum game.

Is it about competing in it?

If you are the strongest competitor, then that's fine. You just have to accept the outcome.

Or you are the market maker. Then you are the harvester when you enter.

But what if you are just an ordinary person?

The answer I found is to steadily hold the relatively scarcest asset by exploiting the inherent weaknesses of overproduction, excessive issuance, and the madness of capital.

To this end, I summarize it in one sentence: all residuals belong to the most scarce asset.

Make good asset allocation and have a worry-free break during the May Day holiday.