The Problem with Capitalism....
By ParaTed2k
@ParaTed2k (22940)
Sheboygan, Wisconsin
November 27, 2007 5:47pm CST
Capitalism has proven to be the economic system that offers the most opportunity for the most people in a society. It is based on freedom and individual achievement. However, it has it's faults.
The problem with Capitalism is the same as the major fault of all economic systems... it's run by human beings.
As the saying goes.. power corrupts, and absolute power corrupts absolutely. Each economic system, if left to itself, ends up with a few people gaining enough power to corrupt the whole thing. So, no matter which system a society chooses, it has to be tempered by a little bit of the others.
Capitalism is no different. In every country that has used it, it has produced two things. An industrial revolution, and abuse.
What makes capitalism better than the other systems is, it only takes a little socialism to keep it working well. The whole basis of socialism requires centralization of authority. You can't have everyone just deciding what their excess is, and freely donating it. Someone decides for you... and "donations" are forced.
It is the decentralization of power that is key with capitalism. Since, when left to itself, power can become centralized, there needs to be a way to stop it before the few become too powerful.
This may come as a shock, but that's about what we have in the US now. We have a system that does well in encouraging movement from one economic class to another. If you don't believe me, just look at the Fortune 500 richest Americans. Most of them were middle class or lower just a couple of decades ago. On the other hand, there are many who were once rich, but are now firmly in the middle class. By taking advantage of opportunities, there are even people rising above the poverty line.
On the other hand, there is a bit too much intrusion by the government right now. If the government continues to exert excess power on the system, opportunity will decrease.
Just a little socialism is a good thing in a capitalist society. Too much socialism will never match what capitalism has to offer.
2 people like this
5 responses
@kurtbiewald (2625)
• United States
28 Nov 07
hmmmmmmmmm
if you are rich and fortune has smiled upon you, the nyou probly think capitalism is great and anyone who is poor deserves it, due to just being stupid or lazy or something
if youare not fortunate, socialism probly sounds like a great idea, at least making sure poor and disabled folks have SOMETHING at least, the folks who own the land and buildings and means of production DO tend to be wealthy, and religion does mostly console people and then tell em to be on time to work, no matter how bad the job is, and not much chances for people who are crazy or disabled or not citizens, etc. AND , they tend to throw away the food that is a day old, instead of just giving it away for free.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
28 Nov 07
I've never been rich, but I see that capitalism gives the most people the best opportunity.
The US is a capitalist society and we gave over $260 Billion in charitable donations in 2006.
Reality actually says you are wrong with all your assumptions here.
1 person likes this
@ParaTed2k (22940)
• Sheboygan, Wisconsin
28 Nov 07
The fact you think people are rich only because "fortune" smiled upon them is pretty telling.
1 person likes this
@theprogamer (10534)
• United States
28 Nov 07
Nice discussion Ted. Short, sweet and accurate. The industrial revolution (or worker revolution) didn't just occur stateside but in other nations too during their industrial periods. The outcome depended on the region in question. Stateside did put a little more socialism in the economy, while others like Russia turned to communism.
And for those that say stateside is too greedy, Ted mentioned $260 billion in charitable donations which is pretty much the figure I had. About $130 billion of it was foreign aid (with private sector donating almost 100 billion in that area). Then there is also other hundreds of billions being funneled around via government; the top funded consisting of Welfare, Social Security, Medicare & Medicaid along with Defense. Yes there is some socialism, and some safety nets(though a good few need efficiency reviews and overhauls). There is also capitalism which does reward those with the ideas, drive, vision and act to give the masses something they truly want. Its also private donations from a wide range of people that is responsible for a sizable amount of charity in nation and beyond.
1 person likes this
@ParaTed2k (22940)
• Sheboygan, Wisconsin
3 Dec 07
I always laugh when the same countries who trash us for being too selfish and arrogant with our donations to their cause, never seem to turn down our filthy money when disaster strikes.
@redyellowblackdog (10629)
• United States
28 Nov 07
I read a great article once concerning why the Israeli Kibbutz system had to convert from socialism in order to survive. The author of the article found a wise old Israeli woman who summed up the whole reason why socialism does not work. She was talking about the Kibbutz where she lived but it applies to all socialist systems. Here are her words of wisdom.
"The problem with socialism is that you have to work really hard to help support people lazier than yourself who you do not even like."
1 person likes this
@Destiny007 (5805)
• United States
28 Nov 07
I will take Capitalism over Socialism any day.
At least I don't have to worry about a bunch of rich people trying to dictate how I live... with Socialism/Communism/Statism/Progressive... the government would be dictating your every move, between deciding what is politically correct at any given time to legislating daily life.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
28 Nov 07
Exactly! I would to!
The only part that the government (socialism) should play in limiting capitalism is where it crosses the line between "what is best for business" and abuse of people. And those limits need to be put on labor as much as managment.
@PieIsAwesome (7)
• United States
28 Nov 07
Capitalism has it's issues, but they are issues that can be treated. Unrestrained capitalism in the early 20th century where the government had little involvement proved to be abusive. Upton Sinclair argued that because capitalism is a system where people produce for profit or self gain, it is in its very nature a socially unjust system that exploits the working class. He did not believe capitalism was something that could be fixed and that it should be removed. Upton Sinclair had a more radical opinion, however, and just because a system shows problems doesn't mean that it should be thrown out. As the 20th century progressed, what came about was a restrained and "civilized" capitalism, one that was subject to government regulations, and with it came more social justice and a decrease in the exploitation of the working class. Just how much is open to argument however. And so there is a balance as to how much the government should be involved. Too much and free enterprise is threatened. Too little and the system becomes socially unjust and abusive.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
28 Nov 07
Exactly!
I wonder if Upton Sinclair shared his excess royalties with his fellowman, or if he bought a nicer home and bigger car? ;~D
I've noticed that most people who claim to be socialists enjoy capitalist lifestyles when given the choice. ;~D
