Capitalism versus Socialism

Econjack

[Theoria]

There is no capitalism today. Capitalism requires private capital, we don't function on that these days.

The arguments today are for the socialism of republicans or the socialism of democrats. Both parties support massive top down government that either supports the finger on the scale of tax breaks toward certain interest, or grants and other expenditures toward certain ventures.

There are no capitalist out there. We have lobbyist and other rent seekers directing government expenditures and directions to what they want. Capitalism died long ago, also the responsibilities and ownership of said capital.

[econjack]

In “distribution of income”, I’m using it as a noun, not a verb. It is a statistic that tells how income is spread across those who earned that income. It is not being used as a verb here.

[econjack]

Americanism allows the citizens to control their capital, not the government.

Not entirely true. There are taxes on both wealth and income in the US and, if some leftist get their way, there will be a tax on unrealized income (e.g., tax on potential capital gains).

Capitalism has to do with capital; Socialism has to do with governance.

No. Both are concerned with the control of capital. One promotes free ownership of the factors of production the other promotes gov't ownership of those factors. Yo9u recognize this in your 3rd paragraph.

[econjack]

There is no capitalism today.

Not true. There is plenty of private capital with individuals having say over who owns it and how it is used. Even my paltry savings account is private capital. There are plenty of capitalist out here, but, alas, there are more who just want the capital with no effort and that where the political socialists like the Democrats dwell. They promise to take from those who have and give to those who don't have. This transfers capital from productive uses like investment to consumption. You can only do that so long before the system fails. Socialism is like trying to lift a bucket while you're standing in it.

[Theoria]

'Not true. There is plenty of private capital with individuals having say over who owns it and how it is used. Even my paltry savings account is private capital. '

Not true at all. Your savings account is backstopped and protected by

Government via the FDIC

. In the past, a private bank would guarantee investments and interest rates. Hello 'It's a Wonderful Life', government now controls all aspects of our current system, and you just celebrated another of a form of picking a industry to be protected by government. Capitalism has always involved risk, government has removed vast amounts of that risk to cater to certain interest groups. Banking is part of that protected class.

[econjack]

I still disagree. There are plenty of stores of capital that have nothing to do with the FDIC. If you choose to do so, you could store your capital in Switzerland in the form of gold bars.

[MosesKnows]

Well stated. “Who controls your capital?” Is it the Individual? Or the Collective?