Capitalism

Capitalism is based on the Darwenian concept of survival of the fittest. While I am aware of no nation that practices a pure form of this economic system, several Western countries use a form of capitalism at the core of their economies. Scaled-down examples of capitalism are flea markets, bazzars and black market trading. Properties of Capitalism
• • • • • •

Social/cultural rules and political laws define the environment. Supply and demand provide environmental pressures. Those that best "fit" that environment survive and maintain the rules/laws. Those that can't/don't thrive in the system, and otherwise lack participation, are culled. Successful capitalistic systems tend to be open and competitive. A healthy capitalistic system results in economic incentives.

Advantages of Capitalism

Capitalism is an internally stable economic system, in that it is consistent with human behavior. People understand that life is not fair - there's no "free lunch". You have to work to survive, and only the lucky who manage to thrive within the socio-economic matrix make it to the top. As long as there is a belief/hope that one can advance in the system, there is an incentive to participate. Capitalism is also externally stable, in that survival in a capitalistic system requires innovation and flexibilty to keep up with the changes in supply and demand. Such a system is generally prepared to deal with the influx of competition from external sources. Large populations are likely to be diverse, which is beneficial to healthy capitalistic systems.

• Those in power tend to construct rules that limit diversity and competition. and open up competition to external markets. Successful. No existent nation practices pure communism. in order to maximize diversity and flexibility. • Vast imbalances in opportunity encourages revolt. Remedies for Capitalism • • • Create secondary social mechanisms to support those that do not "fit" in the socio-economic system. capitalism easily adapts to such structures. which disrupts and destablizes the system. Communism Communism is based on the concept of shared effort and shared resources. and encourage incentives for such distribution. Disadvantages of Capitalism • It is not acceptable in most modern societies to allow portions of their population to be "culled".• Large. and I know of no self-sustaining country that uses communism as a basis for their economy. . diversified societies tend to gravitate towards heirarchical social systems. Educate the elite to the systemic benefits of resource distribution. Encourage the inclusion of all members of the population to compete. thereby weakening the flexibility and strength of the system as a whole.

Due to their sense of cooperation. this leads to a spirit of sharing . Communism requires common goals and agreed upon rules/laws to allocate responsibilities and resources. in that those that participate benefit and those that don't are culled . If successful. making it difficult to maintain a common goal or set of rules for shared effort and resources.creating an incentive to participate. . Properties of Communism • • • • All members of the economy share both work and benefits. Advantages of Communism • • • Communism is an internally stable economic system. kibbutzes and cooperatives. Successful communistic systems tend to be small and homogeneous.which builds stronger social communities. creating a stabler economy. Disadvantages of Communism • Large or geographically broad populations tend to be diverse. A healthy communistic system results in a cooperative society. healthy communistic systems are very efficient at distributing resources within their localized areas .particularly in times of need. Those that do not provide their share of effort and resources to the system are culled.scaled-down examples of communism include early Christian congregations.

or compete with. reducing the perception of fair distribution of work and resources . Allowing an influx external culture increases the likelyhood of destablizing the homogeneity of the society. Properties of Socialism • • • All members of the economy share benefits. Advantages of Socialism • In environments with plentiful resources. communistic systems tend to block out external cultures and exclude outside competition. As such. regardless of their economic value to the system. This economic system exists in those environments where resources are plentiful. diversified societies tend to gravitate towards systems of heirarchy. and minimize hierarchies. Remedies for Communism • • Keep the society small and homogeneous. . Block out external cultural influences and control external trade. creating a stable social environment.which can destablize a communistic society. Socialism Socialism is based on the concept of everyone gets their share.• • Large. Succesful socialistic systems depend on sufficient resources for the entire population. A healthy socialistic system results in non-economic productivity. or populations are extremely small (such as family units). weakening the system's ability to learn from. external economies. socialism provides all members with their survival needs.

emotional support and continuity of experience to the system. In times of scarcity. resentment of non-economicallyproductive members of society increases. socialistic systems tend not to be competitive. socialism provides everyone with what they want and encourages creative exploration. In times of plenty. However. causing a destabilizing effect on the society and economy. making them externally unstable.can still impart wisdom. such as pure science. This makes socialism internally unstable. Remedies for Socialism • • Avoid scarcity of resources. Freemdom from work provides opportunity for some societal members to explore non-economicallyproductive pursuits. math and non-popular arts. since external forces and internal disasters exist. age. communism provides all participants with . Due to a lack of incentives.due to disabilities. In an isolated. socialism is unsuitable as the principal basis for a long-term economy. socialistic systems provide no inherent incentive to participate. Disadvantages of Socialism • • • • Since there is no culling and no economic advantage to working harder. while potentially adding nothing economically productive.• • Members that cannot participate economically . Keep out immigrants. or periods of poor health . Comparisons: Capitalism vs Communism vs Socialism In an isolated world of plenty. homogeneous society with a common goal and belief system. immigrants are drawn to the free resources offered by socialistic systems.

However.it benefits from diversity and external competition. Summary Capitalism is the most appropriate economic foundation for a large. Capitalism can be supplemented on local basis by the communistic support of families and . However. For all it's woes regarding class discrepancies. capitalism is the most inherently stable economic system . In times of need: distribution of resources. but with added aspects of socialism when resources are plentiful. A healthy capitalistic economy also provides built-in incentives to it's members to increase their economic participation in the system. it is becoming increasingly difficult in this shrinking world to maintain cultural isolation. to maintain its health. This must be accompanied by open competition and diversity .which I believe depends on freedom of expression. free access to information. and education. and the tendency of the elite to constrain opportunities to themselves. and aspects of communism when the need arises.a fair share of the workload and resources. This works well for small communities. diverse nation. particularly for non-diversified societies. diversity makes communism unsuitable as a core economy for most modern nations. the power elite of a capitalistic society must encourage certain societal behaviors/rules/laws: • • • • Diversity of cultures and methods. The above system describes an economy based principally on capitalism. Open competition and free trade. In times of plenty: support for non-economicallyproductive creativity.

while encouraging the diversity of local cultures.cultural/social/religious organizations. capitalism should be tempered by socialistic mechanisms that aid the needy and support the arts. . In times of plenty. This increases preparedness for times of need.

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