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.

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

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

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

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

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

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