The standard leftist refrain regarding “ advanced capitalism” is that it amounts to “ socialism for the rich and capitalism for the poor . ”
Like most leftist notions, this particular idea represents almost the precise opposite of the truth. The machine they refer to is anything but socialism for the rich plus capitalism for the poor.
Capitalists do not want socialism for on their own and capitalism for the rest. Capitalists seek profit, which can only come under a capitalist system.
Of course , the particular phrase “ socialism for your rich and capitalism for the poor” is premised to the leftist belief that socialism is obviously beneficial for those living under it, a veritable land of milk and honey, while capitalism is really a nefarious, dog-eat-dog, every-man-for-himself “ anarchy, ” where the dogs fight each other for the scraps and many necessarily starve.
Socialism is usually to be sought and capitalism to become avoided, at all costs.
But the truth of the matter is that capitalism could be the productive system that creates wealth and rightfully redirects it, while socialism will be the consumptive system that limits the creation of prosperity and wrongfully devours this.
Why is this the case? In socializing the means of production, socialism disincentivizes personal, private investment in capital formation, including funds in oneself.
Under socialism, personal investment in capital resources, including in oneself, is discouraged (or disallowed). Socialism thus favors the noninvestor, the nonproducer, and the nonuser of the means of production and disfavors (or disallows) the private investor, the manufacturer, and the user of the means of production.
Therefore , fewer people can undertake these roles, plus capital formation will drop; less appropriation of natural resources, less development of new factors of production, plus less upkeep of older factors of production will occur. 1
Additionally , considering that investment in productive factors is discouraged (or disallowed), socialism disincentivizes saving plus encourages consumption. Since one particular cannot become a capitalist, there is certainly less reason to save and more reason to spend.
The result will be less production of consumer goods, and likewise, a lower standard of living for everybody.
Socialism also results in a wasteful use of the means of production because it does not respond to changes sought after.
With out entrepreneurs to reallocate capital resources to changing demand and improved means, socialist planning cannot adjust to modifications in demand and production. This means that at least the production of much less wanted goods and services and possibly however, nonproduction of needed goods and services will result.
It should almost be unnecessary to point out how socialism modifications the character of society and even the personalities of those living under it.
People under socialism become less adept in producing, innovating, and responding to the changing demands of the fellows. They become less able to adapt. As time under socialism accumulates, they become more and more present focused and less prudential.
Contrary to the claims of its advocates, it is socialist— not capitalist production— that is irrational.
Its irrationality is due to the elimination of the essential indices for determining rational pro duction and distribution— specifically, prices.
Ludwig von Mises showed that prices represent the incredibly thick and essential data sets required for allocating resources to production and calibrating these to demand.
Socialism is irrational because by beginning without prices for that factors of production, no rational criteria can ever emerge for allocating resources to specific production processes.
Eliminating prices, the socialist economy cannot provide the feedback spiral required for determining what to generate, how much of it to produce, or even how to produce it. Cancerous, oversized productive capacities in a single sector of the economy are usually par alleled by relatively anemic productive capacities in another, and so on.
This means that socialism fails not just at resource allocation but also at the economic representation of the people it claims to champ.
Absent price mechanisms, economic “ voters, ” or consumers, have no way to voice their particular needs and wants.
Production plus distribution must be based on the nondemocratic decision-making of centralized authorities. Furthermore, without any way of having their needs reflected within production, socialism represents not “ economic democracy. ”
Those who really care about the functioning masses must reject socialism for its incapacity to establish economic democracy, its most essential reason for being.
Capitalism is the ethical program that respects property rights, beginning with the property in someones bodies, while socialism will be the unethical aggression against real estate rights, including aggression towards ownership in people’s bodies. Without property in your body, one is a slave.
Based on “ the particular private ownership of the means of production, ” capitalism just entails the following:
1) persons own their own bodies and can do whatever they want with their physiques, as long as they do not trespass towards another’s bodily or some other property;
2) whatever persons make with otherwise unclaimed sources or resources for which they have got contracted, whenever such actions does not entail aggression towards another person’s property, becomes their home;
3) the protection of house rights and unfettered exchange, an increasing division of labour, increasing wealth production, and overall improved social welfare.
In short, everything that is taught about capitalism and socialism, like most anything else that is taught in general, will be the inverse of the truth.
What is true of political capitalists , however— that is, those who curry favor with the state— is they seek profit while decreasing or eliminating risk, and so they pursue state favoritism to gain it.
But make no error, capitalists of whatever stripe undertake their activities looking for profits. Why then would certainly political capitalists want socialism for themselves and capitalism for others?
The short answer is they don’t. They want capitalism meant for themselves and socialism individuals. That is, they want to monopolize for-profit production by eliminating the property more while reducing or getting rid of their own risk.
In fact , the whole objective associated with what has been called the Excellent Reset is the exact inverse of the formula “ socialism for the rich and capitalism for the poor. ”
The Great Totally reset represents an attempt on the part of the protected class of elite capitalists to form cartels and seek state favoritism to establish capitalism for themselves whilst effectively consigning the vast majority in order to socialism.
This explains why capitalist corporations, in conjunction with propagandists in the World Economic Forum, are usually spouting social democratic socialist rhetoric and ideology plus pushing a social democratic socialist agenda.