Are capitalism and socialism interdependent?
Or: What I have discovered in my search for the best definition of capitalism and socialism.
(Klicke hier für die deutsche Version.)
Do you know generally accepted definitions for capitalism and socialism? I don’t. In this article, I will introduce you to the phenomena behind these terms to show how capitalism and socialism influence our history. Based on that, I will show you what Bitcoin has to do with it.
Capitalism and socialism as phenomena
To understand the phenomena behind capitalism and socialism, I start with the transition from prehistoric humans to primitive society. We owe this transition to our cooperation. As prehistoric humans, we were physically inferior to our prey. Even today, our physical strength is inferior to that of animals like elephants, lions, or rhinoceroses. From this disadvantage, we learned to moderate violence within groups in order to cooperate with each other. We are capable of passing on knowledge about the creation and use of tools to other members of our group. This not only secures the necessary knowledge for our survival but also enhances our cognitive abilities.
Violence within groups is mitigated through hierarchies. Our prehistoric ancestors departed from the principle of “each against all” and replaced it with competitions for positions in the hierarchy*. Of course, they were not aware of this.
*A hierarchy, in terms of behavioral biology, refers to a social hierarchy that entails certain rights and obligations within a group [1].
Capitalism
The competitions for the position of the alpha animal in the hierarchy are subject to the evolutionary principle of survival of the fittest. This is not only about physical strength but also about exploiting all given advantages. These advantages can lie within the individual or their situation. Smarter individuals can defeat stronger ones, and the wealthy can lead the more diligent, and so on.
*An alpha animal is the highest-ranking member of a social hierarchy [1].
The survival of the fittest and the competition for the alpha position have much in common with the various definitions of capitalism [2, 3]. It is always about utilizing and creating advantages (productivity, location, capital, etc.) to transform disadvantages into new advantages, just as our prehistoric ancestors were able to transform the disadvantage of their physical weakness into an advantage through cooperation.
→ Capitalism refers to the exploitation and creation of advantages in the pursuit of the alpha position.
Socialism
The advantages of the alpha animals are contrasted with the disadvantages of their group members. The difference between the advantages and disadvantages determines the extent of dominance the alpha animals have over their followers. The most skilled hunters among the prehistoric humans enjoyed advantages such as more food or a greater choice of partners. Today, the wealthy enjoy the advantage of greater freedom in their pursuit of further advantages.
In extreme cases, the alpha animal lives in luxury while their followers suffer. Out of this distress, the beta animals come together to get rid of their particularly dominant-aggressive alpha animal [1, 4]. This phenomenon can be found throughout our history, e.g., Roman civil wars [5], Boston Tea Party, or the French Revolution [6].
*Beta animals refer to the second-level members of a social hierarchy [1].
Fortunately, not every capitalist phenomenon has to end in war or revolution. Voluntary wealth redistribution, as in Athens in 594 BC, leads to peaceful societal reforms [7]. Alpha animals who voluntarily redistribute understand that they will always be part of the group, no matter how exposed their position may be.
→ Socialism refers to the redistribution of advantages on a voluntary basis or through the violent overthrow of the alpha animals.
Capitalism and socialism as a cycle of nature
As history shows, neither capitalism nor socialism are capable of forming perpetually stable societies [7, 8]. Instead, both are states in the same cycle of nature. But what if this cycle is an evolutionary optimization loop that is still searching for a better solution?
From this perspective, capitalism and socialism belong to the dialectics of nature. The thesis of capitalism is opposed by the antithesis of socialism. Thus, what evolution is seeking is synthesis.
Ideal syntheses combine the best aspects of both states. From capitalism and socialism emerges a system in which private property motivates progress, and the market regulates production and consumption without facing rejection of wealth disparities by a critical mass of people.
As shown above, voluntary redistribution ensures social peace. If I think this through, the solution to our evolutionary dilemma becomes evident. We can prevent critical wealth disparities in society through timely redistribution.
Bitcoin
Since the chosen representatives of our state struggle with redistribution, we must not leave this task to them. It is crucial that redistribution occurs before wars and revolutions threaten. They are preceded by unrest that distracts us as a society from our progress for a long time. I interpret the events of the present as unrest before the storm. And what about you?
I assume that we will achieve the necessary redistribution through Bitcoin. Its rules are the same for everyone, and no one can change them solely for their own benefit. Just as it is up to everyone to use Bitcoin or not, the same must apply to redistribution through it. And just as Bitcoin convinces through its advantages, so will redistribution.
Conclusion
Bitcoin will influence the interplay of the phenomena behind capitalism and socialism. Like gold, it will accelerate the market economy and the concentration of wealth in a few hands [7]. Eventually, when the difference between the rich and the poor becomes unbearable for the masses, changes will become inevitable. This will also apply to the wealthiest people because they will always remain part of society. Self-preservation of one’s own Bitcoin will not protect them from the united forces of the suffering, only well-meaning fellow human beings will.
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Reference to previous articles
https://medium.com/@ELTankred/the-long-way-to-spoconism-51602968f3fd
https://medium.com/@ELTankred/bitcoins-blind-spot-70a12b0dc3f2
https://medium.com/@ELTankred/bitcoin-3-arguments-1-problem-a9c2217bf784
Sources
[1] https://de.wikipedia.org/wiki/Rangordnung_(Biologie) Accessed: June 30, 2023
[2] https://en.wikipedia.org/wiki/History_of_capitalism Accessed: June 27, 2023
[3] https://de.wikipedia.org/wiki/Kapitalismus Accessed: June 28, 2023
[4] Rahim Taghizadegan. Der ewige Kampf um Privilegien. Im Interview mit Niko Jilch. https://www.youtube.com/watch?v=azRKgtsCnsE Accessed: June 27, 2023
[5] https://de.wikipedia.org/wiki/R%C3%B6mische_B%C3%BCrgerkriege Accessed: June 27, 2023
[6] https://www.planet-wissen.de/geschichte/menschenrechte/geschichte_der_menschenrechte/index.html Accessed: June 27, 2023
[7] Will & Ariel Durant (2021). Die Lehren der Geschichte. ISBN: 978–3–95972–368–8
[8] Schumperter, Joseph A. (2020). Kapitalismus, Sozialismus und Demokratie. ISBN-13: 978–3825253172
https://en.wikipedia.org/wiki/History_of_socialism Accessed: June 27, 2023
https://de.wikipedia.org/wiki/Sozialismus Accessed: June 28, 2023
