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Socialism Vs Capitalism

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Which Is Better: Socialism or Capitalism?

By Jorge E. Ponce

 

Some of my friends have questioned my past affiliation with the Democrat party.  I understand the reason for their inquisitiveness.  Nevertheless, let me say that there is no similarity between the party of old and the party of now.  The party of old had a humanistic ideology that I shared with Cuban national hero José Martí while embracing fiscal conservative policies.

Regardless of my political affiliation, I have always reached my own conclusions about policy issues based on my research.  I’ve never been someone with a herd mentality.  And thus, when comparing the centrally controlled economic model favored by today’s Democrats with the market-driven model espoused by Republicans, I take issue with both.

Socialism vs. capitalism.  Which one is better?  Both have their flaws, but capitalism is definitely better.

Socialism advocates for a centrally controlled economy that most of the time makes the government the sole owner of all means of production.  The main driver of this economic system is Karl Marx’s quote: “from each according to his abilities, to each according to his needs.”  Its aim is the equal distribution of goods and services without regard to one’s socioeconomic status.  Government bureaucrats are the ones making the distribution decisions to narrow and ultimately eliminate the disparities between the poor and the rich.

The main problem with a socialist economy is that it negates the universal aspiration of people to better their lives by making decisions and taking risks that lead to a better enjoyment of what life and the world have to offer.  Under the socialist model, a physician, engineer, or a lawyer would receive the same amount of rationed consumer goods than a taxi driver, bartender, or a hairdresser.  Moreover, a top performer in any field would receive the same salary as the employee who barely met his performance standards.

Human beings are programmed since birth to look after their own selves and not after the well-being of the collective.  This is one of the fundamental characteristics of human nature, and when anyone tinkers with it, there are dire consequences — as is evident in every country where socialism has been implemented and failed: Cuba, Nicaragua, Venezuela, North Korea, the Soviet Union.  Communist China realized late in the game that to survive the Soviet Union catastrophe, it had to implement multiple market-driven policies.

Even the socialist aspiration of achieving a classless society becomes an unattainable dream because of human nature.  When citizens realize that the rich of the old capitalist society have been replaced by Communist Party members, they become disillusioned.  Socialism has replaced the players, not a class.  This leads to many becoming human rights dissidents, which brings about long prison sentences or deaths by mysterious circumstances.  Others opt to emigrate to the United States by any means necessary — legal or illegal.  A perfect example of this immigration is the surge of Cuban and Venezuelan illegal migrants since Biden’s failed policies to secure the southern border.

Capitalism fosters the private ownership of the means of production to generate and distribute the goods and services that consumers desire for a profit.  Its driving force is the law of supply and demand.  When there is a demand for a product, production is increased.  When demand for a product is not so good, production decreases.

Unlike the socialist model, where the government owns all means of production, there are multiple private owners of production in a capitalist system.  Therefore, there is more competition, and the winners are the ones who produce the products with the best quality and the cheapest price.

The drive for increased profits leads companies to increase innovation, which generates better products for consumers.  In a socialist model, where there are no profits for anyone other than government bureaucrats, workers become box-checkers with the end result for consumers being mediocre and expensive products.

Salaries are calculated based on skillsets, educational degrees, certifications, and productivity.  Those who pursue educational degrees that are in high demand in the marketplace and those who exceed their production standards are rewarded with higher wages and benefits.  Thus, a physician and a computer engineer are better off than an Uber driver and a tattoo artist.

The most stable economies in the world follow the capitalistic model: the United States, Singapore, Australia, the United Kingdom, Switzerland, Ireland, Taiwan.  This should give everyone room to reflect on the misguided attempt by today’s woke Democrats to bring socialism to the U.S. shores.  Nowadays, Americans can see the destruction that socialist policies have brought to Democrat-run cities like Washington, D.C.; Chicago; Philadelphia; and San Francisco.

Having extolled the virtues of capitalism, I have to mention a few of its drawbacks.  When you have unfettered capitalism with an exorbitant need for increased profits, some companies betray the well-being of their countrymen.  This is what happened when many American firms closed their factories in the Midwest and relocated them to China to tap into a cheaper labor force.  The drive to a higher profit margin also led some companies to share proprietary formulas and manuals with their Chinese counterparts that put the future well-being of Americans at risk.  Americans got a clue to these dangers when most drugs needed to address the COVID pandemic were manufactured in China rather than in the United States.  And some Americans from both of the major political parties favor illegal immigration as a means of cheap labor without giving any consideration to the depressed wages and lost job opportunities for legal immigrants and U.S. citizens.

The Preamble to the U.S. Constitution has the goal “to promote the general welfare.”  Therefore, capitalism has to be reined in by safety-net social programs — like Social Security, food stamps, and Medicare — to live up to the ideals of our founding documents.

To protect our nation for current and future generations, it is incumbent on our government officials to issue policies that Make and Keep America Great Forever!  And it is necessary that Americans vote these officials into office!

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21 COMMENTS

  1. “When you have unfettered capitalism with an exorbitant need for increased profits, some companies betray the well-being of their countrymen. This is what happened when many American firms closed their factories in the Midwest and relocated them to China to tap into a cheaper labor force. ”

    Actually he is wrong. The reason they left was because the competition made product cheaper or better because unions demanded that they and the Govt. controlled the costs of the industries, same as they do in NZ. e.g. Minimum wages, when you can work and when you can’t and penalty wage regimes.

    Not saying we should work for nothing but am saying productivity matters and when unions and govt.’s conspire to frustrate the productivity of companies then companies will shift. ( the Democrats are I’m[porting people for just that reason as dod Merkle. Californis has existed on cheap Mexican labour forever. John Steinbeck wrote a very good book about this. “The Grapes Of wrath”. Excellent read).

    Companies need profits but they also need customers to make those profits. If the competitor has a better value proposition then the better value proposition wins every time. That proposition is the customers choice as it should be.

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  2. From the article:

    …….”Unlike the socialist model, where the government owns all means of production, there are multiple private owners of production in a capitalist system. Therefore, there is more competition, and the winners are the ones who produce the products with the best quality and the cheapest price.”…….

    That is pure capitalism. What the USA (& by default the rest of the Western world) presently have is corporatism where through endless buy outs, mergers & takeovers competition is nullified to increase profit.

    For the consumer the results differ little to those of socialism.

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    • A study I read last year showed that companies in America taking over others inevitably led to a clash of cultures and in most cases a failure of the rational for doing so.
      Not successful move generally.
      Same here if you look hard.

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    • I swear this country is 50:50 between socialism and capitalism, if you want to strive ahead try hard and do better for yourself you can, or you can be a bum do nothing and get handouts, how ever the worst bit at the moment is those that don’t want to do do or try and just hold their hands out are also the ones screaming the loudest that they should have the same as those that do try to better themselves. The governments past and present are still bowing to the screamers, minimum wages rising more handouts for those on bennies, its time for it all to stop, id like to say that they don’t see what they are doing but they know exactly what they are up to, trying to kill capitalism by stealth till we end up 80% socialism and barely clinging on to being a “1st” world country

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      • Crony capitalism. Lobbyists gaining priority systems and funding for their corporate masters which puts small players out of business and makes corporates more powerful. Govt controlled by powerful corporates is the result = Elites hold power over the “basket of deplorables”.

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  3. Last night we watched a doco that included the highland “clearances” in Scotland 200 years ago where small holding sheep farmers were removed from their land so the rich and powerful could have swathes of land for shooting parties free of those pesky farmers cluttering up the environment. The self-appointed elite are at it again…

    https://www.youtube.com/watch?v=E_rNH7guM98
    Millions Will STARVE’: Rancher Sounds Alarm on Global Food Agenda | The Glenn Beck Podcast | Ep 208

    Glenn Beck

    There is currently a war being waged against America that threatens the very liberty of our nation — and it’s one you might not expect. It’s not the war on free speech or freedom of religion. It’s the war on beef. Who better to discuss this war than American cattle rancher Shad Sullivan? Shad is the R-CALF USA Private Property Rights Committee chair. In this episode of “The Glen …

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    • That clearance was in the mid 1700’s.
      some of my ancestrs were among that and moved to the Shetlands around 1756.
      It was about taking land for cattle by the pommy pricks.

      The house they lived in still stands today.
      Not like our leaky bloody things.

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      • I thought that your ancestors rowed down to Scotland to pillage & ransack the Jocks’ crofts. The way I heard it your lot carried off all the good looking Highland chicks back to Vikingland which explains all the fat, ugly Scots munters prevalent today. 🙂

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      • The English were cruel masters.
        They took and took and took
        The Celts copped it

        When the US declared Independence the English fought back for decades.
        They still set up the Penal colony in Australia in parallel.
        This is why when 170 years later when the Yanks got the English to lock into WW2 – a war they could not win, even with the colonies dragged in – the Yanks bled them dry and striped them of their ‘Empire’ .
        The Poms were out of India faster than they did Brexit (not hard)
        If Yanks had done that to the French as well there would likely have been no US War of Aggression in Vietnam

        The French were lousy colonisers,
        Portugal and Spain did waaay better than them.

        Anyhow, the English were cruel, so the Tiriti oh Faitangi was a real one-off that the Maori should be eternally grateful.
        It appears the ‘elite’ (the low IQ munters mainly from Ngapuhi) are simply too simple to ever work that out .
        Ask the abos .

        Not that the Yanks are saints. Since they had the Civil war in which approx. 700,000 people died in a population of 30 million, they have raged with wars and mass murder esp 1880s and 1890s, then from 1990 onwards.

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  4. To pick up a bit from Nunnas’s comment @ 9:26 am.

    Cloven & Piven Plans to Break Capitalism through the Social Welfare system & then bring in Socialism to eventual Communism,.

    …. The Cloward-Piven Theory is a strategy devised in the 1960s to successfully provide welfare and attempt to solve political problems. The main steps of this strategy are to: —-

    ♢ Overload a system
    ♢ Create mass panic and hysteria as the system is overloaded
    ♢ Oversee the destruction of the system
    ♢ Replace the former system with a new system

    From a different link to the above.
    https://www.armstrongeconomics.com/world-news/civil-unrest/the-cloward-and-piven-strategy/

    Note that Elon Musk is sort of onto it.. even though he as used aspects of “crony capitalism” but also became one of the largest taxpayers too.
    If a government throughs $money around, it would seem to be there for the taking,
    But has that &bait got some real fish hooks in it, to be owned by government legislation.
    The catch in more ways than one, which came first, the $ or the legislation, and that spoonful of $ to make grease the legislation

    Elon Musk @elonmusk
    Most people in America don’t know that the census is based on a simple headcount of people (including illegals) *not* just citizens.

    This shifts political power and money to states and Congressional districts with the highest number of illegals.
    https://twitter.com/elonmusk/status/1753813669945774393
    Feb 4, 2024

    Elon Musk @elonmusk
    A few other things you probably don’t know: illegals in America can get bank loans, mortgages, insurance, driver’s licenses, free healthcare (California & New York) and in-state college tuition.

    What’s the point of being a citizen if an illegal gets all the benefits, but doesn’t pay taxes or do jury duty?
    https://twitter.com/elonmusk/status/1753894000510341530
    Feb 4, 2024 : 32.4M Views
    Elon message to get people to think, like to over 30 million people.

    Our politicians never figure that the institutions are built up by past parents, grand parents, & the reason is for the future of Their children & Their Community.
    So why are our politicians actively giving it away, and seem to be very ok in making the social welfare, health system unmanageable to unworkable.

    Why are they so blind in bringing about the collapse of it.? Rhetorical I know, but we need to get answers to some of these questions & for others to see the either the greed, control, ignorance, incompetence, dereliction of duty. etc..

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    • … but doesn’t pay taxes or do jury duty?…

      Who the hell wants to do jury duty/
      It is a stupid system esp where jurors have to listen to lawyers bullshit and cant ask any questions.

      look at the outcome of the E Jean cray cray and the jury awarding 83 million when the cray cray asked for ten,

      or the payouts in the Round up trials awarding Billions to people who would not earn 2 million in a lifetime.

      Jury trials are horseshit.
      I have always got out of it.
      What is it now, $13 a half day plus bus fare. Barely pay your inner city lunch cost.
      The people on the OJ Simpson trial were sequestered for over 10 months and could not watch much teevee or read a paper in that time.
      Fuck the jury bullshit.
      Either have pool of trained professionals or forget this silly antiquated idea.

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