Capitalism is as flawed as other systems - but the alternative to capitalism is serfdom

The Times of India ^ | SUNDAY, MAY 19, 2002 3:00:56 AM | Swaminathan S. Anklesaria Aiyar

[headsonpikes]

Good post!

I propose a toast to our beautiful, if imperfect world!

[Polybius]

Crooked behaviour is not uniquely Indian or American. It is inherent in human behaviour, and can reach great heights in a capitalist system.

This is precisely why Communism is always doomed to failure. Communism can only succeed in a society populated solely by saints.

In reality, Communism attracts just as many crooks as capitalism but with one difference. Under Communism, the crooks are the only ones with the guns.

[onedoug]

Under Generally Accepted Accounting Principles, Capitalism is more atune to human enterprise:
competition, creativity, innovation....

Any other system is, by definition, inimacal to that spirit.

[jimtorr]

I believe it was Winston Churchill who said, "Capitalism is the worst of all possible economic systems, with the exception of all the others."

Yes, I know he actually said that about democracy, but capitalism fits, also.

[thinktwice]

There lies the road to serfdom.

An interesting choice of words ... There's a Nobel prize winning author -- Fredrich Hayek -- that won the Nobel prize in Economics after writing "The Road to Serfdom," which carries the same theme I see in this piece.

[sourcery]

No system can eliminate corruption and criminality. That's not the issue. The only question that matters, is which system best handles the corruption and criminality that is inevitable in any human society?

Hint: it's the one that most effectively decentralizes and distributes power, and most effectively allocates resources, rewards constructive action, and discourages destructive or useless action.

[stiga bey]

"...The use of money, muscle and influence to sabotage rivals and competition is a feature of democracy no less than of capitalism..."

This guy is within a hair of the truth, but he's not quite there. Capitalism does NOT lead to corruption. It is big government that leads to corrpution. When an overregulating, oppressive government wields too much power over a free market, the market responds as always by allocating its resources in a rational fashion. I.e., when bribing a government official, whether it be overt or covert (e.g., campaign donations), is more profitable than reinvesting in infrastructure or lowering prices to increase demand, then that is what will happen. The market always makes rational choices. It is the citizens through their choice of government that to various degrees fail capitalism.

This is why we must decrease the size of government, despite what the bleeding-heart types say. The ONLY type of campaign-finance reform that will work is reducing the amount of influence that the bureaucrats have to peddle. Supply-side campaign-finance reform, if you will. But no, we keep increasing the government in a self-defeating effort to address the 'evils' of capitalism. Sigh.

[In veno, veritas]

Also, I think the American system that the fathers came up with is based on the idea that every government will become corrupt in time, therefore make it as easy as possible for the people to rebel, while still having a system. We have a uneasy balance between anarchy and totalitarianism. Just my idea though.

[stiga bey]

Is it too late to clone Ayn Rand?

[stiga bey]

"the American system that the fathers came up with is based on the idea that every government will become corrupt in time, therefore make it as easy as possible for the people to rebel, while still having a system."

Well said, Sir. And if it weren't only 10:30 in the morning where I am right now, I would open a bottle of Bulgarian Gorchitsa to toast your point and your screen name.

[stiga bey]

Oops, I meant 'Gorchivka'. 'Gorchitsa' is mustard. :o)

[Gladwin]

Capitalism does NOT lead to corruption. It is big government that leads to corrpution. When an overregulating, oppressive government wields too much power over a free market, the market responds as always by allocating its resources in a rational fashion. I.e., when bribing a government official, whether it be overt or covert

Then, you are against zoning regulations? I can buy the house next door to you, and put in a hog farm?

[Gladwin]

No system can eliminate corruption and criminality. That's not the issue. The only question that matters, is which system best handles the corruption and criminality that is inevitable in any human society?

I am not sure that the US has less corruption, in total dollar terms, than other nations. It is just that the USA produces so much more that the corruption seems small percentage wise.

I am just think out loud here...

[liberallarry]

Very nice post. The author knows a great deal about our society. I wonder how many of us know as much about his?

[Gladwin]

Don't be a crank. You sound like those people that think that cutting the capital gains tax improves everything, from Barney videos to local strip clubs.

[stiga bey]

Then, you are against zoning regulations? I can buy the house next door to you, and put in a hog farm?

I am not advocating anarchy. Zoning regulations are fine to the extent that the regulations are responsive to the people that are affected by them (i.e., that they reflect an actual agreement of the people who live in the 'zone'). On the other hand, if we had a system like the EU, where your zone would be controlled by Brussells even if you lived in, say, Krakow, I could easily bribe my way into putting a pig farm next to your home and you couldn't do a damned thing about it except move. After all, the Commissioner decided that it is for the benefit of the people despite your personal inconvenience, fellow citizen. What are you going to do? Vote against the Commissioner. Ha!

[Cacique]

Bookmark bump