Socialism versus Capitalism

Posted January 28, 2016  |  Filed under Politics

Do you "really" know the difference between socialism and capitalism? And, do you "really" think this country should become a socialist country? If you answered no to the first question, and/or yes to the second question, we need to talk.

I decided to write this now because I have been listening to some disturbing things on the news lately. Many people really don't know what socialism is and many people think that we should convert this country into a socialist country. This is really sad and tells me that our education system is failing greatly. Before I get into the meat and potatoes of this article, I want to point out two things that I want you to keep in your mind as you read this article. First, please note that both socialism and capitalism are actually economic systems, but socialism crosses into politics. And second, there has NOT been one success where socialism has been implemented. Even today, there are socialist countries and they are struggling and some failing. A good example - look at Greece. The country has been on the verge of bankruptcy for decades. And there are several other European and South American countries that are struggling and failing due to socialism. And yet, you have people here that want to embrace that system, and many of these people are politicians that want to run this country.

So let's start off by describing what socialism is. In a nutshell, socialism is where the government controls the economy. Under socialism, companies do not make the decisions. The government controls manufacturing and production; it controls the capital, the land, and the distribution of money and assets; and, the government controls the banks. If you were a business owner, the government will tell you how to run your company, to include who you should hire and how much to pay them; they will tell you how much you should produce and what the price will be for what you produce; and they will tell you who to sell your products to. They will even tell you when you can retire and how much you will get. The bottom line is that in a socialist country, you do not have the freedom to control your own company. The government controls the entire economy.

Where socialism crosses into politics can be described by one word, "control". You may have noticed that in the paragraph above where I was describing socialism, I used the word "control" many times. That is because the government will be controlling the economy. Ordinary people will not be free to make their own decisions about their economic situation, especially if they own a business, small or large. One really bad thing about control is that when people get a taste of it, they want more. So they implement more control and you lose more freedoms. There is a theory out there that socialism is a transition step to communism. And like socialism, that has never worked either. And at that point - you can kiss all of your freedoms goodbye.

Now let's talk about capitalism. But first, I want to point out one really important thing. The United States was founded and built on capitalism. The US has become the greatest nation in the world in such a short time. We have become who we are because of capitalism - NOT socialism or any other "ism's". With that said, let's talk about what capitalism is.

Capitalism is an economic system that is based on individual and private ownership and personal "control" rather than government control. Business owners control and make the decisions about their company. Business owners decide what to build, when to build, where to build, how to build, where to sell, and how much to charge for their products - without government intervention. They have the freedom to run their business the way they want. Also, in a capitalistic society, self-governance is built into it. If a business owner makes makes bad decisions, or produces poor products, then society will not buy their products. The government does not need to be involved. That is why capitalism is also referred to as free enterprise or private enterprise. Unlike socialism where the defining term is "control", the defining term for capitalism is "freedom".

Capitalism is often referred to as both an economic and political system. I completely disagree with that train of thought. It is an economic system. The government needs to stay out of its way to let capitalism grow this country like it has done since the inception of the country. The sad thing is that a lot of politicians are injecting socialism into the economy, which is really hurting this country. What I mean by injecting socialism into the economy is that they are passing laws and thousands of regulations that are used to "control" businesses and the economy. Because of these socialistic laws and regulations, many businesses are struggling; many businesses have gone out of business; many businesses are relocating to countries outside the US; and many businesses are not hiring new employees. It is NOT because they are greedy. It is because the government has been passing all of these laws and regulations to control businesses which are taking their freedom away from running their businesses as well as taxing them into oblivion. The United States has the highest business tax rate in the world. If the government would get out of the way and reduce business taxes, the economy would grow so fast and the unemployment rate would drastically go down. The bottom line is - they need to get out of the way and let capitalism do its thing like it has for 200+ years.

I have talked about some important concepts here. There are many people out there that have no clue what they are saying or doing when they embrace socialism. We need to educate those people, because it is obvious they didn't learn anything in school. And if you are one of those that think that socialism is better than capitalism, I would strongly suggest moving to a socialist country. Leave my country alone! There are plenty of socialist countries that will take you.

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