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Continuous redistribution of wealth. Without it, capitalism inevitably leads to extreme wealth inequality and to violent revolution of the impoverished masses who take the wealth and cut off the heads of the wealthy.
To those here who are advocates of capitalism. What is it about capitalism that makes it effective for economic growth and advancement?
Capitalism is not working in reality. Of course, we have never had *pure* capitalism. The economy has always been mixed. Thomas Piketty argues that the gap between the rich and the poor threatens to destroy us. His book is called Capital in the Twenty-First Century.
Piketty notes that the rich are effective at protecting their wealth from taxation and that progressively the proportion of the total tax burden shouldered by those on middle incomes has risen.
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Wealth inequality thus becomes a recipe for slowing, innovation-averse, rentier economies, tougher working conditions and degraded public services. Meanwhile, the rich get ever richer and more detached from the societies of which they are part: not by merit or hard work, but simply because they are lucky enough to be in command of capital receiving higher returns than wages over time. Our collective sense of justice is outraged.
The lesson of the past is that societies try to protect themselves: they close their borders or have revolutions – or end up going to war. Piketty fears a repeat. His critics argue that with higher living standards resentment of the ultra-rich may no longer be as great – and his data is under intense scrutiny for mistakes. So far it has all held up.
What do you see happening in the United States at the moment or in England with Brexit or in other countries in Europe with the isolating of immigrants?
To those here who are advocates of capitalism. What is it about capitalism that makes it effective for economic growth and advancement?
Capitalism is the only truly voluntary economic system mankind has known. All actions between customers and businesses (from corporations to sole proprietorships) are done after a choice to commit to a voluntary agreement. Employment is the same-individuals can chose who they would like to work for and business owners can decide if that employee is a good fit and contributor. The worker has the ultimate power-he may quit at any time and deprive the business of his services.
The above is perhaps the moral justification for capitalism. Perhaps the most direct answer as to why capitalism is the most effective system for growth and advancement is that it rewards those that, in one way or another, contribute the most. An individual with a radical new idea for a product or service is free to start his own business, risk his fortune and efforts, and succeed (or fail) on the basis of how his product is received by the ultimate arbitrators-the customer.
This is true from the success and growth of individuals like Steve Jobs, Bill Kates and Elon Musk that started with a small, focused idea and grew it into a major corporation. It is equally true for the mom and dad down the street running a small hardware store or restaurant. Or, for that matter, for the Walton family and their investors that executed the concept of value for the customer (low prices) and customer convenience (open at convenient times) perhaps better than any company in the world.
Perhaps nowhere is the success of capitalism vs socialism more obvious than at a typical US grocery store. A huge variety of foods and products laid out, with more than enough for every consumer, and prices kept in check by the competing store down the street. Compare this with say Russia under the Soviet Union, where central planning and government ownership of the means of production and distribution meant that what stores existed often were unstocked and people waited in long lines simply to buy bread. I have done some reading concerning Soviet defectors during the cold war-supermarkets were the thing that impressed or shocked them most about America.
any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods
an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market
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Originally Posted by Motion
Many seem to associate Nordic countries with Socialism. This link says the Nordic countries are actually more free market than the U.S. The reason they give might surprise you.
Yep. The Nordic countries tend to have less red tape on companies and lower taxes on companies than in the US.
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Originally Posted by Zelva
Liberty
Yep. Why shouldn't I have the freedom to open and own my own restaurant, factory, or store?
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Originally Posted by Winter_Sucks
They have high taxes, a generous welfare system, and the state plays an active role in the economy. It’s not socialism, but right wingers would call it that.
Bernie Sanders is a right winger?
In the Nordic Countries the production and distribution of goods are owned privately or by corporations. The government or collectives don't own the stores, factories, restaurants, etc...
Adam Smith himself said he supported things like pensions and the like for the wellbeing of the workers. I am a capitalist and I also support a national healthcare system, a retirement pension plan, and etc...
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