General Discussion
In reply to the discussion: "Sorry, It's Not a 'Law of Capitalism' That You Pay Your Employees as Little as Possible. It's..." [View all]branford
(4,462 posts)The efficiency and comfort of communism or state socialism? I'd rather not wait on long lines for the state toilet paper.
Capitalism has, by far, lifted more people out of poverty that any other economic model. Capitalism is the reason that the United States has the world's largest economy and it maintains our very high standard of living. It's why so many millions want to immigrate here.
There is a reason we see it as a driving force in developing economies like China, India and Brazil. Even countries with strong social democracies like those in Scandinavia, rely on capitalist enterprise to pay for their cradle to grave benefits. It is also why countries like Venezuela, which is increasingly following a state socialist model, and despite great natural wealth due to its vast oil reserves, has significant commodity shortages and lacks the internal skills and resources, as well as foreign investment, necessary to maintain and maximize its own energy industry.
Market factors, like competition and supply and demand, determine wages in a capitalist system. Any yes, profit is the prime motivating factor. This profit drive is why the United States, even with the re-industrialization of Europe and Japan post-WWII and more recent competition from industrializing developing countries, is still a leading technological and entrepreneurial innovator. Contrary to what many might believe, the United States is one of the largest manufacturers in the world, second only to China.
HOWEVER, no system is perfect (or pure), most definitely including capitalism in America. Rather than eliminating capitalism, we should seek to eliminate the factors that DISTORT the market - do not bail out companies and individuals who made bad investments and foolish risks, enforce the numerous antitrust and fraud laws available today, tax long-term capital gains as income, eliminate preferences for certain industries and companies in tax codes and regulatory schemes, etc. Also note that unions, safety and environmental regulations, minimum-wage laws, etc. are NOT inconsistent with our capitalism system.
Now, let the flaming begin . . . ! (Yes, yes, I know . . . I'm a fascist, corporate shill, soulless oppressor, etc. Such accusations are patently ludicrous and will not change stark economic realities.)
Also please cite to actual examples of the implementation of your preferred economic model for the U.S.A. The perfect, abstract economic theories you read about or discussed in your comparative economic theory seminar in college, are effectively useless. Flawed and selfish human beings run and live in economic systems, warts and all. Convincing implementation of theory should drive actual policy.