Arman Calbay

Capital de facto: Inquiring into the General Theory of Capitalism Arman Calbay

Capitalism is dead and Marx was right? Not so fast. It has now become common and even trendy to declare the exhaustion of the idea of capitalism. Although the Marxist concept was defeated in practice (the fall of Soviet socialism), but, as a theory, Marxism is still influential. The theory was not overthrown. The utility theory? This subjective concept attempted but failed and this is not surprising.



CAPITAL DE FACTO subverts Marxism from a theoretical point of view. The book's objective approach helped to reveal the most common economic misconception: the idea about the sale of labor force under capitalism. Even anti-socialists now believe this, but the book proves the opposite thesis in terms of economics, without taking too general philosophical reasoning and even without complex mathematical calculations.



By itself, the Marxist economic theory is built with reinforced concrete logic. Marx's only weakness is the foundation of his theory. If it is proven to be inconsistent, then the whole edifice of Marxism will collapse. This book did it, turning it into an outdated and incorrect theory, as in physics it happened with the phlogiston theory.



The theory in the book can be called similar to the Theory of Relativity, but this time in economics. Like Einstein's theory in physics 100 years ago, this theory is able to stimulate an explosion of ideas and lay a fundamentally new approach to economics.



The book incorporates the principle of relativity and the mechanism of sustainable symmetry breaking into economic theory, which provides a new understanding of the nature of production, property rights, and the theory of value. Promising practical consequences include consistent models of economic growth, business practices, taxation, and pension reform.