History Greatest debate in modern history? Socialism(not Stalinism) vs Capitalism

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The discussion centers on the contrasting merits of socialism and capitalism, particularly in the context of developing countries like El Salvador. Proponents of socialism argue that it embodies ideals of equality and communal support, especially in societies plagued by violence, corruption, and poverty. They advocate for a system that ensures everyone has access to opportunities similar to those enjoyed by the upper middle class. Conversely, supporters of capitalism emphasize the importance of individual incentives and hard work, asserting that capitalism drives economic growth and innovation. They argue that historical examples show socialism often fails to deliver on its promises, leading to mediocrity and economic stagnation.The debate also touches on the complexities of mixed economies, where elements of both systems coexist. Advocates for a mixed approach suggest that while capitalism fosters prosperity, some socialist principles can enhance social welfare without undermining economic incentives. The discussion highlights the necessity of balancing individual freedoms with social responsibilities, emphasizing that the effectiveness of any economic system depends on its implementation and the specific socio-economic context of a country.
  • #241
vici10, what are we supposed to take away from that plot? I see that birth rates took a dive before the collapse of the Soviet Union. I see death rate rising since 1960 - indeed, from 1960 to 1989 it looks like it's gone up by about 50% and from 1989 to today, maybe 20 or 30%.

Finally, birth rates and death rates are anticorrelated. Birth rates go down, and the average population age goes up. Average population age goes up, and so does the death rate.
 
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  • #242
Free Market Enviromentalism? Role of Goverment in Capitalism?

Did you know that Chile is the most free market oriented country in Latin America and is the most succesfull and with the best living standars and quality of life?
 
  • #243
AlexES16 said:
Free Market Enviromentalism? Role of Goverment in Capitalism?

Did you know that Chile is the most free market oriented country in Latin America and is the most succesfull and with the best living standars and quality of life?
Did you know that this so-called 'free market' was imposed by a dictator who overthrew a democracy and murdered thousands of his political opponents in a reign of terror?

I presume you also know that said dictator's coup was supported by the US.
 
  • #244
Vanadium50,

what I try to say is that transition to capitalism was a disaster for many Russians, with sharp increase of deaths and reduction of life expectancy during 1991-1996.
It is true that death rates were rising from 1964, but it cannot compare to what happen in 1991-1996. Decline in life expectancy of 6.6 years for male just in 5 Years,
in peace time! And the most striking thing that they were not old or very young but middle aged males.Death rate for Russian men aged 35– 44 rose by 74 percent in 1989-1994!
Men just drunk themselves to death in the face of capitalism that brings "freedom".
For more comprehensive study about population growth and life expectancy in Soviet Union vs new Russia you can have a look at
"Autopsy On An Empire: Understanding Mortality in Russia and the Former Soviet Union" Journal of Economic Perspectives—Volume 19, Number 1—Winter 2005—Pages 107–130
www.williams.edu/Economics/brainerd/papers/jep05.pdf
It is interesting that people in West have difficult time imagining any system different from their own.
They also have difficult time to understand that economic enslavement (such as high debt, "market" that forces one to choose a profession, to choose a job etc) can be perceived
by many people as loose of freedom, rather than occurring freedom. In this sense "totalitarism" of Soviet Union was much more free. I assume people just could not live with the new for them psychology of capitalism.
 
  • #245
Free Market in Russia? not really. Russia is in the rank 143 of economic freedom.
 
  • #246
Sea Cow said:
Did you know that this so-called 'free market' was imposed by a dictator who overthrew a democracy and murdered thousands of his political opponents in a reign of terror?

I presume you also know that said dictator's coup was supported by the US.

Actually Free Market helped to build a democratic society and in the 90s with a democratic government more market oriented reforms were implemented.
 
  • #247
AlexES16 said:
Actually Free Market helped to build a democratic society and in the 90s with a democratic government more market oriented reforms were implemented.

Chile had a democratic society in 1973 before Pinochet's coup. The 'democracy' that was slowly rebuilt in the 1990s was of an extremely limited kind, with the old dictator still in the background with the effective power of veto. The country is still, now, deeply divided over the general's legacy and the thousands of torturers and murderers who walk freely in the streets.
 
  • #248
Socialism should really refer to any form of social control exercised within a capitalist free market. The idea that socialism is oriented toward equality simply isn't true. Equality is used as an impetus to garner support for various forms of economic control, and then relatively rigid hierarchies and organizational constraints develop for regulating access to work and income. The income gap between rich and poor may shrink some because the rich no longer have to worry as much about losing their position, but the fixing of social distances more than makes up for increased income equality.
 
  • #249
Obviously both have failed, both rationality and empirically this is easy to see.

Socialism obviously fails because people are evil, they will not help their fellow man and they will not work if they have no incentive to work.

Capitalism obviously fails because people are stupid, capitalism relies on the assumption of competition and a pressure to companies to offer the best for the lowest price. Consumers are completely unable to determine what is the best, and are even dumb enough to buy more expensive products because they believe that once it's expensive it's automatically better, even though there is no indication of that. The existence of crippleware shows that companies often have an oeconomic gain from putting time and effort into reducing the capabilities of their products.

However indices such as the Human Development Index clearly favour countries that lean towards socialism: http://en.wikipedia.org/wiki/List_of_countries_by_Human_Development_Index

Also, capitalism is often based on the assumption that hard work rewards, I wouldn't say that, the statistics are pretty clear that the American dream is indeed mostly... a dream... I'd personally say on gut feeling that success is 4 parts birthright, 5 parts damned dumb luck, and maybe 1 part hard work or having a good idea. For some reason, a lot of models in this rule out the 'dumb luck' factor, would Bill Gates be synonym for obscene wealth if IBM just didn't need an OS back then and were willing to take on every-thing so desperate they were? Would Apple and Adobe be huge companies if they just didn't find each other to use postscript? What if the first KFC was just seated at the wrong place and went bankrupt? I'm sure that for every person that became obscenely rich with things like this there are a hundred other people that went bankrupt while they had the same adequacy of business practice, you also need luck.

Of course, fairness set aside, is it better from utilitarian principles? Does it increase the overall wealth to just let the oeconomy be free and let the market evolve as it does on its own. Empirically it seems that this is not the case by a slight margin, rationally, I think the chance of a complex system evolving where you want it to go to is pretty slim, it's like blowing up a block of granite and hoping it turns into a statue. Evolution selects upon the fittest, where 'fittest' in oeconomy is for a great deal determined by 'willingness to exploit the consumer and enrich by leeching from others, not to mention bribing officials.'
 
  • #250
Kajahtava said:
Obviously both have failed, both rationality and empirically this is easy to see.

Socialism obviously fails because people are evil, they will not help their fellow man and they will not work if they have no incentive to work.

Capitalism obviously fails because people are stupid, capitalism relies on the assumption of competition and a pressure to companies to offer the best for the lowest price. Consumers are completely unable to determine what is the best, and are even dumb enough to buy more expensive products because they believe that once it's expensive it's automatically better, even though there is no indication of that. The existence of crippleware shows that companies often have an oeconomic gain from putting time and effort into reducing the capabilities of their products.

However indices such as the Human Development Index clearly favour countries that lean towards socialism: http://en.wikipedia.org/wiki/List_of_countries_by_Human_Development_Index

Also, capitalism is often based on the assumption that hard work rewards, I wouldn't say that, the statistics are pretty clear that the American dream is indeed mostly... a dream... I'd personally say on gut feeling that success is 4 parts birthright, 5 parts damned dumb luck, and maybe 1 part hard work or having a good idea. For some reason, a lot of models in this rule out the 'dumb luck' factor, would Bill Gates be synonym for obscene wealth if IBM just didn't need an OS back then and were willing to take on every-thing so desperate they were? Would Apple and Adobe be huge companies if they just didn't find each other to use postscript? What if the first KFC was just seated at the wrong place and went bankrupt? I'm sure that for every person that became obscenely rich with things like this there are a hundred other people that went bankrupt while they had the same adequacy of business practice, you also need luck.

Of course, fairness set aside, is it better from utilitarian principles? Does it increase the overall wealth to just let the oeconomy be free and let the market evolve as it does on its own. Empirically it seems that this is not the case by a slight margin, rationally, I think the chance of a complex system evolving where you want it to go to is pretty slim, it's like blowing up a block of granite and hoping it turns into a statue. Evolution selects upon the fittest, where 'fittest' in oeconomy is for a great deal determined by 'willingness to exploit the consumer and enrich by leeching from others, not to mention bribing officials.'

This was a good post. I don't think people realize that true free market capitalism would very decentralized, with easy entry and exit of markets. What that means is that business formulas would not evolve as patented corporate plans but as market trends. KFC would only evolve from a local culture of publicly frying chicken and selling it at local farmers markets or out of one's house. In fact, KFC as a corporation wouldn't evolve out of such a chicken-frying culture, because that would be a form of market control. The culture of frying chicken publicly would simply spread through migration from town to town, where it would rise or fall in popularity based on local supply and demand and not on marketing or business quid-pro-quo's or some other form of manipulative control.

True free market capitalism would work wonderfully imo if people could accept the freedom and simplicity of it, but they can't seem to let go of the vast possibilities for establishing contractual obligations and other forms of market control at various scales to protect themselves from the whims of market shifts. So fear of the free market leads to relative forms of social-economic control, which eventually evolves into a widespread belief that government should guarantee a national-scale socialist economy and ensure everyone's participation in it as both right and responsibility.

Freedom is slowly swapped out with social-control, while money and trade remains the economic basis, which allows socialism to continue to appear as a slightly modified version of free-market capitalism, when in fact there are numerous layers of institutional constraints designed to restrict freedom and guide decision-making according to various cultures of governance.
 
  • #251
Kajahtava said:
Capitalism obviously fails because...
Have any idea how the overwhelming majority of humans lived prior to the rise of capitalism?

Claiming that the current shortcomings of society are the result of capitalism is like claiming that an egg shortage is the result of chickens.
 
  • #252
Al68 said:
Have any idea how the overwhelming majority of humans lived prior to the rise of capitalism?
I presume you mean prior to the Industrial Revolution, in which case the answer is that most humans lived as peasant farmers, although there were still a fair few hunter-gatherers dotted about. Some lived quite decent lives if they could avoid such things as the plague and stay out of the way of wars. Others didn't.

What's your point?

With a good harvest, a medieval peasant had a pretty good life. Work hard when there's work to be done; eat, drink and have lots of sex when there isn't... They may have lacked political freedom, but their lord exerted much less influence over their day-to-day lives than a 19th-century factory owner did his workers.
 
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  • #253
Sea Cow said:
With a good harvest, a medieval peasant had a pretty good life. Work hard when there's work to be done; eat, drink and have lots of sex when there isn't... They may have lacked political freedom, but their lord exerted much less influence over their day-to-day lives than a 19th-century factory owner did his workers.

I don't think sex was quite as exciting before the repression of the victorian era propelled it to contemporary levels of eroticism.
 
  • #254
Al68 said:
Have any idea how the overwhelming majority of humans lived prior to the rise of capitalism?
What was this 'before capitalism' you speak of?

There was always capitalism, perfect ideal capitalism is taking no artificial steps to control the market. Even primitive tribes trading is capitalism, supply and demand.

There was capitalism in the renaissance, in the mediaeval ages, in classical times, in prehistoric times and so on. Socialism is a fairly new innovation, before that, all markets essentially worked without artificial control, the idea of socialism is for some governing authority to take active control and steer the market.

Claiming that the current shortcomings of society are the result of capitalism is like claiming that an egg shortage is the result of chickens.
I can't remember to ever having named the word 'current'.

In all fairness, it's the result of advertisement campaigns. Capitalism works on the assumption that the consumers will always buy the best product for the lowest price, thereby forcing companies to produce the best for the lowest.

However that's not true, that's only one factor that plays, and a very slim one, in the end, the best advertisement campaign wins, not the best product. If I advertise and overpriced and bad product brilliantly, it will out-sell a cheap and high quality product without an advertisement campaign.
 
  • #255
Kajahtava said:
What was this 'before capitalism' you speak of?

There was always capitalism, perfect ideal capitalism is taking no artificial steps to control the market. Even primitive tribes trading is capitalism, supply and demand.

There was capitalism in the renaissance, in the mediaeval ages, in classical times, in prehistoric times and so on. Socialism is a fairly new innovation, before that, all markets essentially worked without artificial control, the idea of socialism is for some governing authority to take active control and steer the market.

I can't remember to ever having named the word 'current'.

In all fairness, it's the result of advertisement campaigns. Capitalism works on the assumption that the consumers will always buy the best product for the lowest price, thereby forcing companies to produce the best for the lowest.

However that's not true, that's only one factor that plays, and a very slim one, in the end, the best advertisement campaign wins, not the best product. If I advertise and overpriced and bad product brilliantly, it will out-sell a cheap and high quality product without an advertisement campaign.

Hell, a good portion of The Code of Hammurabi (circa 2250 BCE) deals with how one is to be compensated with money or grain for various jobs, hirings, fines, etc. It didn't seem to be a new or shocking notion at that time either. That said, there are many different flavours of capitalism, as with socialism.
 
  • #256
brainstorm said:
I don't think sex was quite as exciting before the repression of the victorian era propelled it to contemporary levels of eroticism.

I don't know, being given a copy of the Kama Sutra as standard fare, along with the various forms of art which were, frankly, quite explicit would seem to indicate that sex, like food, is a matter of taste and technique.

Repression is interesting, but then, sex without fear and with a skilled partner is MUCH better than a lifetime of fumbling caresses and petticoats.
 
  • #257
Kajahtava said:
There was capitalism in the renaissance, in the mediaeval ages, in classical times, in prehistoric times and so on. Socialism is a fairly new innovation, before that, all markets essentially worked without artificial control, the idea of socialism is for some governing authority to take active control and steer the market.

Capitalism and socialism have never existed without the other in some form. They are two sides of the same coin. One is freedom in economic activity and the other is any attempt to control it for the benefit of (some or all) people at the expense of the freedom (of some or all).

Free market capitalism is predicated on the absence of market control (except to ensure the basic conditions of a free market) and what reason is there for any form of market control except the social benefit of some or all people.

Sometimes people argue with me that socialism is only socialism when it involves the intent to create more equality through redistribution. That's not true, because socialism never redistributes more than it has to in order to keep the poorest people happy and consenting to the regime. Some people always benefit more than others, while other people have to keep working at tasks they may not like but nevertheless have to do because if they don't, others would have to go without their product. It's not like those who govern or those who benefit from redistribution are offering to share in the productive labor of those whose products and services they consume.

So socialism really comes down to modern aristocracy, with fixed social positions and a relatively flat distribution of income to legitimate maintaining class distinctions. Office workers and trash collectors may make closer to the same amount of money, but the reason the office workers support paying the trash collectors more, is because they expect them to be happy and continue to take care of their trash as a result. Socialism, in other words, is buying off the poor when communist revolution or other economic crisis/failure of capitalism is feared. It's saying, "we'll pay you more and guarantee your job - just keep preserving the system that privileges us."
 
  • #258
brainstorm said:
Capitalism and socialism have never existed without the other in some form. They are two sides of the same coin. One is freedom in economic activity and the other is any attempt to control it for the benefit of (some or all) people at the expense of the freedom (of some or all).
No, that's oligarchy, socialism, or communism as the words suggest is chiefly trying to control it for the people.

Communism, to commune, community? It basically means 'sticking together'.

There is a distinct difference between socialism and a market that is not free. If I suddenly ban the selling of certain drugs that has nothing to do with socialism or not. And indeed, many advocates of capitalism call for banning of drugs and prostitution for instance, while many socialists simply advocate treating it as a business like any other.

Free market capitalism is predicated on the absence of market control (except to ensure the basic conditions of a free market) and what reason is there for any form of market control except the social benefit of some or all people.
None.

Sometimes people argue with me that socialism is only socialism when it involves the intent to create more equality through redistribution.
Did you ever read Das Kapital?

Just asking, because you're re-defining the term socialism here.

That's not true, because socialism never redistributes more than it has to in order to keep the poorest people happy and consenting to the regime.
Counter-example: Netherlands, the country that I live in. It re-distributes a lot more than that, it also subsidizes art from taxes for instance, often pretty high culture art that has no appeal to at the poorest layers of society.

Some people always benefit more than others, while other people have to keep working at tasks they may not like but nevertheless have to do because if they don't, others would have to go without their product. It's not like those who govern or those who benefit from redistribution are offering to share in the productive labor of those whose products and services they consume.
I have no idea what this means, sorry.

So socialism really comes down to modern aristocracy, with fixed social positions and a relatively flat distribution of income to legitimate maintaining class distinctions. Office workers and trash collectors may make closer to the same amount of money, but the reason the office workers support paying the trash collectors more, is because they expect them to be happy and continue to take care of their trash as a result. Socialism, in other words, is buying off the poor when communist revolution or other economic crisis/failure of capitalism is feared. It's saying, "we'll pay you more and guarantee your job - just keep preserving the system that privileges us."
You almost make it sound as if the richer layers of society willingly give it up to the poorer.

Of course not, they're forced to do so by the law.
 
  • #259
Kajahtava said:
No, that's oligarchy, socialism, or communism as the words suggest is chiefly trying to control it for the people.

Communism, to commune, community? It basically means 'sticking together'.
"Sticking together" and "for the people" are just legitimating ideologies. In reality "the people" or "the collective good" are never really about distributing all privileges and work equally among everyone. It's just about buying off the lower classes in order to guarantee the social position of those with higher status. The logic is, "the government treats you so well, why should you complain about doing your job."

There is a distinct difference between socialism and a market that is not free. If I suddenly ban the selling of certain drugs that has nothing to do with socialism or not. And indeed, many advocates of capitalism call for banning of drugs and prostitution for instance, while many socialists simply advocate treating it as a business like any other.
Drugs and prostitution are businesses like any other, except the product is highly addictive and the consumers lose control over their ability to resist consuming. This means basically guaranteed sales for the producer/dealer/pimp. It also means guaranteed tax revenues for the government that taxes it. I'm familiar with the Dutch rhetoric legitimating the toleration of drugs and prostitution, but I'm afraid it's just the result of some people being addicted to the products and others being addicted to the level of business and tax revenues that the industries generate.

Did you ever read Das Kapital?

Just asking, because you're re-defining the term socialism here.
Yes, it's short. Marx saw socialism as the worst enemy of communism. I am basically repeating his critique here. He saw it as the bourgeoisie's attempt to buy off the working class to avoid communist revolution. I'm not for revolution, personally, but I think a free republic is very close to Marx's ideal communism, except the means of production are owned individually by the workers instead of collectively. The main benefit of Marx's communism anyway, imo, in the synthesis of proletariat and bourgeoisie, which basically translates to everyone having a universal consciousness in which they both perform productive labor and take responsibility for the means of production. Capitalism, according to Marx, is what alienates each class from the consciousness of the other.

Counter-example: Netherlands, the country that I live in. It re-distributes a lot more than that, it also subsidizes art from taxes for instance, often pretty high culture art that has no appeal to at the poorest layers of society.
Again, I'm familiar. That government is basically subsidizing class-culture pluralism. It's called "pillarization," I think. There is little if any class mobility. Workers work, cleaners clean, artists paint, and intellectuals communicate. Each is guaranteed in their position and income and is forbidden from branching out into other sectors. Individuals are imprisoned within a formalized division of labor, supposedly instituted by unions in their own interest and protection.

I have no idea what this means, sorry.
It means that true redistributive equality would also include redistributing forms of labor and places to live every so often. In other words, a college professor would switch to sweeping the street after a couple years, then to working in a supermarket, etc. Also, someone living in a nice expensive apartment in Amsterdam would move to Groningen or some small town, and vice-versa. The fact that these kinds of trades do not take place indicates to me that while income and consumption-opportunities are somewhat leveled by Dutch government, class distinctions based on profession and where people live is not addressed for redistribution/sharing/equalization.

You almost make it sound as if the richer layers of society willingly give it up to the poorer.

Of course not, they're forced to do so by the law.
It seems that way, doesn't it. The truth is that by funding the poor through government, the rich make the poor dependent on a lifestyle they provide them. The government and unions are just used to propagate the belief that the poor are exercising power by taking money from the rich. In reality the ideology, which is explicit for the most part, is to share the spoils of capitalism to make everyone happy with it.

Of course it would be wonderful if everyone could live at the standards provided by the Dutch government, but obviously it isn't or else there wouldn't be such strong resistance to migration. Dutch social benefits fuel the desire of citizens to "protect their paradise from outsiders." Again, this is an effect of being on a payroll. I have been trying to figure out what interest there is in making people so protective of their nanny-state, and I think it has to do with creating solidarity and national pride, and also maintaining high population density, since that stimulates high property prices for relatively small living areas.

Ideally the Dutch way of life could be extended to a global universal, but I wonder if it would be either feasible or sustainable if there was no exploitative/exploitated capitalist markets outside the socialist paradises to use as investment markets to generate the surplus wealth that gets redistributed to the beneficiaries of the system.
 
  • #260
Kai said:
You almost make it sound as if the richer layers of society willingly give it up to the poorer.

Of course not, they're forced to do so by the law.

I believe that Brain means the "rich" or "upperclass" are the ones who make the laws and they mandate higher wages for workers in order to keep them happy and preserve their own place in the social structure.

Brain also brings up an interesting idea of equality. At least the question of whether or not economic equality is really a true measure of equality. Just because one has money does not necessarily mean that they are possessed of the same equality of opportunity for liberty and self fulfillment as anyone else. While I, as a garbageman, may make the same amount of money as some technician it does not mean that I am anywhere near as happy or fulfilled as the technician. For individualists in particular happiness and liberty are rather valuable commodities and most strive for economic advancement for little other reason than to attempt to attain these more abstract desires. In fact giving me more money may only be a means of oppressing me by making me feel that I should be happy with my occupation and not disrupt the allegedly equal social structure.edit: Looks like Brain beat me to it.
 
  • #261
Personally, I find all of these ideologies suck.

Capitalism contains a contradiction.
Pure socialism contains a contradiction.
Both systems involve government, so they carry the baggage of politics.
Both systems can be abused so easily that its too tempting for those with the opportunity to resist.

Why not a brand new ideology rooted in the scientific method? Why are we stuck between two failed economic ideologies?
 
  • #262
SixNein said:
Personally, I find all of these ideologies suck.

Capitalism contains a contradiction.
Pure socialism contains a contradiction.
Both systems involve government, so they carry the baggage of politics.
Both systems can be abused so easily that its too tempting for those with the opportunity to resist.

Why not a brand new ideology rooted in the scientific method? Why are we stuck between two failed economic ideologies?

I don't know that either ideology sucks in theory, but in practice no ONE ideology can encompass the sum of humanity in an ideal fashion. The thing is, in the absence of a stable ideology around which you form a lasting rule, once your benevolent/effective president/king/congress/synod/etc... DIES, you're hoping for more of the same. That tends not to work. (Henry V -> Henry VI for instance).
 
  • #263
I was just going to make a quick comment. Seems I wrote a small book. Needed to get it of my chest though...

I'm not sure which is best (capitalism or socialism) as I have never experienced either. All I know coming from England is a twisted form of equality. Corrupt, and masquerading as an opportunists dream.

I know people who have worked hard all their life and still have nothing to show for it. The majority of us have to work long, hard hours for pittance while others become rich from half the effort. Why do bankers deserve more money than bin men or street sweepers? Which is really more important? Why do celebrities deserve hundreds of thousands of pounds for appearing on a t.v show when I know people who shovel chicken poo for twelve hours a day and barely get anything for it. It's incredibly unfair.
If you think that in this world most people are rewarded for their hard work you are gravely mistaken. Me and the other billion below the poverty line will gladly attest to that. Many of us work till out hands bleed, yet politicians claim second homes as expenses from our tax. Capitalism is dog eat dog - anything goes - each to their own - look after number one. And people wonder what is wrong with the youth of today. We even coin new phrases to describe it: 'anti-social behavior'. Well capitalism is anti-social behaviour. The children are just following our social ideals.

I like the idea of socialism. Spread the wealth. I would happily give half of what I have to the next man. Maybe then the little old lady who lives down my street could afford to eat and heat her home and wouldn't have to worry about tyrants taking her possessions. And I'm not talking about the kids. Maybe, if we all shared the global resources abit then people from poverty stricken countries could actually eat. Poverty stricken countries, ha! Capitalist stricken more like it. Take America, was once a free and promising place until we brits took it by force and enslaved the indigenous people. Now we go about attacking other countries, in the name of peace, no-less. Basically to steal their resources. Oh, and to 'give them democracy'. Well our version of democracy is really pick your new dictator. When was the last time you voted on anything? never right? America uses enough resources each year to support the rest of the planet three times over. Three times over! I suspect england is just as bad. Why do we deserve to be so selfish and wasteful? because we have earned the right through hard work? I don't think so. There is a huge imbalance. Can you not see it?

All under the farce of capitalism. Equal opportunities for all? If you work hard you will be rewarded? Don't make me laugh. Maybe capitalism could work but what we have now is pure corruption. Anyone advocating capitalism,... you do realize that most of our wealth was stolen don't you? We didn't earn it. It is no coincident that some countries are rich, and others poor. We made them poor. We have murderer and enslaved millions in our history and stolen any resource worth having. I think we should give it all back! Spread the wealth. Maybe then Planet Earth could see a true golden age.
 
  • #264
Frame Dragger said:
I don't know that either ideology sucks in theory, but in practice no ONE ideology can encompass the sum of humanity in an ideal fashion. The thing is, in the absence of a stable ideology around which you form a lasting rule, once your benevolent/effective president/king/congress/synod/etc... DIES, you're hoping for more of the same. That tends not to work. (Henry V -> Henry VI for instance).

Even in theory, I do not see these ideologies working because they contain contradictions.

For example, look at capitalism.
In a capitalist market, owners of production want to increase profits. Workers are a cost of production. In order to gain more profit, the owners want to pay the workers less. The workers are also the consumers of the products being produced, and they can no longer afford to buy the product. America is debating if it wants to return to a pre-ww1 era economy. By the look of the inequality, I think the economy is well on its way to mirroring that period of time.
 
  • #265
SixNein said:
Even in theory, I do not see these ideologies working because they contain contradictions.

For example, look at capitalism.
In a capitalist market, owners of production want to increase profits. Workers are a cost of production. In order to gain more profit, the owners want to pay the workers less. The workers are also the consumers of the products being produced, and they can no longer afford to buy the product.

Owners of the means of production want to make a profit. Capitalism does not necessitate a need for increased profits. Corporatism requires increased profits because the corporation is at the mercy of its investors.
 
  • #266
SixNein said:
Even in theory, I do not see these ideologies working because they contain contradictions.

For example, look at capitalism.
In a capitalist market, owners of production want to increase profits. Workers are a cost of production. In order to gain more profit, the owners want to pay the workers less. The workers are also the consumers of the products being produced, and they can no longer afford to buy the product.


America is debating if it wants to return to a pre-ww1 era economy. By the look of the inequality, I think the economy is well on its way to mirroring that period of time.

Contradictions abound... that's why you need people to apply ideologies to circumstances, and not broadly. That then goes back to "the good leadership" dying, and being left with someone less... effective.
 
  • #267
TheStatutoryApe said:
Owners of the means of production want to make a profit. Capitalism does not necessitate a need for increased profits. Corporatism requires increased profits because the corporation is at the mercy of its investors.

The same is true in all forms of companies working in capitalism. If someone makes an investment, he or she wants the highest return possible.
 
  • #268
SixNein said:
The same is true in all forms of companies working in capitalism. If someone makes an investment, he or she wants the highest return possible.

If I own a shop then I need to make a profit or the shop will not last. I do not however need to make increasingly larger profits to have my shop and to make enough money to live on. The average business owner attempts primarily to maintain a steady profit to live on. In contrast a corporation must continue to increase profits just to maintain itself because it needs its investors.

Too many people seem to think that corporatist mentality is the core of capitalism. It is not. I often see people defining capitalism as if it were corporatism. It seems that people are brainwashed into believing that they are one and the same.
 
  • #269
Thetom said:
I like the idea of socialism. Spread the wealth. I would happily give half of what I have to the next man. Maybe then the little old lady who lives down my street could afford to eat and heat her home and wouldn't have to worry about tyrants taking her possessions. And I'm not talking about the kids. Maybe, if we all shared the global resources abit then people from poverty stricken countries could actually eat. Poverty stricken countries, ha! Capitalist stricken more like it.

It is true that capitalism creates poverty, but if the market were truly free, poverty would become so widespread that everyone would gain access to get what they need. It's only by virtue of the fact that certain markets privilege certain beneficiaries that prices and wages are kept artificially high enough to guarantee some poor people getting better access to resources than others.

It's a nice fantasy to imagine that spreading money around would make it possible for everyone to get more, or at least enough, of the things they need and want. In reality, this is a self-defeating fantasy because money itself is designed to create scarcity. The way it works is this: each person who gets/has money to spend tries to get the most value for it they can. This means that businesses compete to provide the lowest prices on the highest value goods and services. The more people consume those goods and services, the more prices rise to prevent existing buyers from depleting the available supplies. If the supply of something exceeds the demand for it, a glut results from the abundance and, in theory at least, competition between sellers drives the price down until the poorest individual can afford it.

So, the more money you give to the poor to spend, the more they consume, which drives up the scarcity of goods and services, generating more revenues and profit for the businesses selling the products. This raises the incomes of the people with the privilege of profiting from the increased sales and prices, and by so doing makes it possible for them to pay even more for things, which drives the prices up even higher.

Eventually, the result is that prices inflate to levels that once again make it difficult for relatively poor people to consume at the level of those with more income. The situation is once again the same, with some people being able to consume more and others able to afford/consume less.

So if you really want to help the poor, the best thing you can do is get the rich or middle class to conserve their spending to the point of creating so much abundance in goods and services that the prices drop to levels that everyone can afford. This is actually the natural result of a free market in which relative abundance replaces relative scarcity. The problem is that the people who make money on business don't like to see prices fall, because it cuts into their revenues, profits, and incomes - so they market and otherwise encourage people to pay higher prices and buy more of their product more often, which creates a class-culture that is even further out of reach for the poor.
 
  • #270
Well I understand what you said brain. I am very much an idealist when it comes to these things. My brother tells me to get real. I say we cannot loose our ideals. What exactly are we striving for? Where are we heading? What is our goal, if not to realize our ideals?
I can't get over the feeling that if i eat steak for breakfast, lunch and dinner and someone else eats only rice and beans, then with abit of a swap, we could both eat well (i'm a pretty simple sort).

The capitalist system does seem to have an inherent inability to provide well for all. This is a bad system IMO. It leads me to wonder what is beyond the capitalist (and indeed socialist) system. Are these really our only options. There must be a better way. Ignore any technicalities at this point. Identify our ideal. Radical change is almost impossible, but with a clear goal (abundance for all) we can get there incrementally, surely. Capitalism seems stagnant. Where is it heading? hopefully not here..

http://img293.imageshack.us/img293/579/42207552evolution4200.jpg
^that is the human race evolved into a multi-cast society.
 
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