Capitalism vs Socialism
The False Debate
The Problem with Friends
Am I a socialist or a capitalist?
My socialist friends call me a capitalist. My capitalist friends call me a socialist. Sadly, I am neither.
Not only do I detest being labelled as one or the other, I believe the Capitalism vs Socialism debate is at best a waste of time. At worst, it is an effort to misguide and distract from more important issues.
Why? Let me explain.
Autocracy to Democracy
In a capitalist system, ownership of capital is in private or individual hands. As a result of this private ownership, economic, political and social power in a capitalist system is proportional to the amount of the said private capital owned. Rich people have more power; poor people have less power. On one hand, the distribution of power could be extreme, resulting in autocracy. In many capitalistic autocracies, the institutions are the slaves of the rich. They are also known as plutocracies. They merely enable and enforce the interests of the current owners of capital. On the other hand, the distribution of power could be equitable, resulting in democracy.
In a socialist system, economic, political and social power is in the hands of a state, which itself is a collective. The state is a collection of individuals. And the distribution of power between these individuals could be as varied as in a capitalist system. Hence, a socialist system could also be anything from autocracy to democracy.
Free Markets and Competition
Capitalists claim that capitalism promotes free markets and competition. Leading to more better production. But many capitalists systems turn into anti-competitive monopolies. The only way to solve this problem is socialist regulation by a state that is more powerful than the private individuals that run the said monopolies.
Similarly, socialists claim that they can come up with longer-term more enlightened goals, that benefit more people. But too often the best way to achieve such goals is through private individuals doing whatever that is most beneficial to them.
Good things and bad things
A society where all individuals are happy and prosperous is a good thing. And there seem to be other good things that enables higher-good things like happiness and prosperity. Good things like equity, free markets, and strong institutions.
Capitalism and socialism are not, in themselves, good things or bad things. It depends on how they enable actual good things like equity, strong institutions and free markets. Which lead to higher good things like happiness and prosperity.
It seems that neither Capitalism or Socialism is sufficient to achieve these good things. A capitalist system with no equity is just as dysfunctional as a socialist system with no free markets. And so is either with biased institutions.
Hence, we should dump this futile Capitalism vs Socialism debate. And instead shift to more important things like conversations and action about Equity, Free Markets, and Strong Institutions. A nation with more equity, freer markets, and stronger Institutions is better than one which is merely capitalists or socialist.
