Capitalism versus Socialism (premium, retirement, claims, capitalist)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Too bad capitalism would have only offered $1 to cut the yard, then charged him 1.25 for use of the lawnmower.
The power of choice dictates the terms. If the work is more than the pay provided for it, I choose not to do the job as it results in a loss. As for the lawnmower, if I am in a position that needs one, I go to one of the other neighbors and tell him I will pay him a percentage of what I earn to use it to cover the cost of wear and provide him a reasonable profit in the exchange. He can agree or disagree, but the power of choice continues to dictate the terms.
The result is, the guy who wants his yard cut for a dollar ends up cutting his own yard AND paying for the upkeep of his equipment because nobody would be stupid enough to waste their time on the deal that was proposed.
Choice is integral to the power of the system. Failure to evaluate that contingency results in a false explanation of the system.
I just imagine what a child will do when his parents suddenly die.
Next day he will go to the adoption agency and ask for new parents? The adoption agency, because the system will have no supervision, can pretty much do whatever it wants with the child. The highest bidder, some pervert, can buy the child because you know supply and demand will be in equilibrium then. No child protective services will be there to take care of the child.
Capitalism is where private enterprise decides what services to provide - what product to manufactuer - what price to charge - and how much to pay the workers.
As it is now, the Government is not allowing for freedom in these areas by dictating standards, dictating wages, dictating who a company has to hire and so on.
But, capitalism does NOT include issues such as providing national defense, interstate commerce, and the nations general welfare.
I would suggest that "Ohio" read and study the Constitution of the United States. To date he/she has not.
Where in my example did I say we were in the United States and subject to U.S. laws?
And you are wrong. The workers also decide what they are paid. Consumers decise what the private enterprise will manufactuer and what price will be charged. Capitalism is a two way street.
Or what if the private insurance companies decided simply not to pay claims. (See: Health Insurance Companies). Who would enforce the rules? This whole no government hypothetical is too ridiculous for words.
The power of choice dictates the terms. If the work is more than the pay provided for it, I choose not to do the job as it results in a loss. As for the lawnmower, if I am in a position that needs one, I go to one of the other neighbors and tell him I will pay him a percentage of what I earn to use it to cover the cost of wear and provide him a reasonable profit in the exchange. He can agree or disagree, but the power of choice continues to dictate the terms.
The result is, the guy who wants his yard cut for a dollar ends up cutting his own yard AND paying for the upkeep of his equipment because nobody would be stupid enough to waste their time on the deal that was proposed.
Choice is integral to the power of the system. Failure to evaluate that contingency results in a false explanation of the system.
Nice to see someone else understands how things work when people are free to make their own decisions.
I wanted my yard mowed and I wanted to teach my son, now 13, the difference between capitalism and socialism.
So, I went to my son this summer and offered him $20 to cut the grass. He immediately went to work. I told him that is how capitalism works. Someone needs some product or service. Someone else is willing to fill that need. The 2 parties come to a mutual agreement on what the terms of labor and payment will be. Everyone leaves happy. If one party is not satisfied they are free to not do business with the person. He was very happy when I gave him the $20
And he learned a valuable lesson: Hard work has rewards.
The next week the grass needed mowed again. This time I decided to show him how socialism works. He cut the grass and came to me and asked to be paid the same $20. I withheld $8 and told him this was for federal income tax. I gave $2 to his younger sister, who did no work, and told him this was only fair. I withheld $4 and told him it was for union dues. (Because he needs a union to tell him I ripped him off last week). I withheld another $5 and told him that it was for the administrative costs of dividing up the money. I gave him the one dollar that was left over.
When he cried for receiving $1 for doing the same thing he did last week but received 20 times the amount of money, I told him to stop being “selfish” and “greedy” and called him a racist.
And he learned a valuable lesson: Hard work gets you nowhere.
That is not exactly capitalism, because there is no competition to provide services. If it were capitalism you would have gathered all the neighbor kids along with your son, his little sister, the unemployed young adults and if your were unscrupulous some local illegal immigrants and had them all bid for who would do the job the cheapest and taken the offer of the kid who would do it for $.50.
Last edited by Randomstudent; 10-17-2010 at 10:56 AM..
Where in my example did I say we were in the United States and subject to U.S. laws?
And you are wrong. The workers also decide what they are paid. Consumers decise what the private enterprise will manufactuer and what price will be charged. Capitalism is a two way street.
Capitalism is subject to a "law" - an economic law - the law of supply and demand
You say you don't want / need government. I say you are naive at best.
I agree that the US government is far to large but, government is needed to maintain order.
And if you are not in the US as you suggest, then I'd guess you are in the EU - and thank goodness you have government there
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
