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

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

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

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

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

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

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