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.

and I know of no self-sustaining country that uses communism as a basis for their economy.• Large. Successful. 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. and open up competition to external markets. thereby weakening the flexibility and strength of the system as a whole. • 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. and encourage incentives for such distribution. in order to maximize diversity and flexibility. which disrupts and destablizes the system. • Those in power tend to construct rules that limit diversity and competition. capitalism easily adapts to such structures. Encourage the inclusion of all members of the population to compete. diversified societies tend to gravitate towards heirarchical social systems. No existent nation practices pure communism. . Educate the elite to the systemic benefits of resource distribution.

Due to their sense of cooperation. . 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 . creating a stabler economy. this leads to a spirit of sharing . kibbutzes and cooperatives. Successful communistic systems tend to be small and homogeneous.which builds stronger social communities. If successful. Advantages of Communism • • • Communism is an internally stable economic system.scaled-down examples of communism include early Christian congregations. healthy communistic systems are very efficient at distributing resources within their localized areas . Properties of Communism • • • • All members of the economy share both work and benefits.creating an incentive to participate.particularly in times of need. Disadvantages of Communism • Large or geographically broad populations tend to be diverse. A healthy communistic system results in a cooperative society. 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.

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

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

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

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

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