Have we moved on from capitalism?
I decided to explore the various elements of capitalism, to see whether we benefit from it at all. We are a low income family, living in social housing and paying bills month by month with no savings. The walls could crash around us at anytime!
Socialism + Capitalism combined
- Encourage efficiency
- Freedom to choose
- Wide choice of products
- Free market
- Economies govern prices
- Low wage
- Environmental damage
- Large inequalities
- Boom and bust cycles
- Social benefits ignored
- Inherited wealth
- A millionaire gets an extra million, it means little to them, but a million given to health, benefits many
- Parliamentary democracy
- Individual liberty important
- Mix of public and private sector
- Most prices determined by free market
- Redistribution of income through tax and benefits
- Equality of opportunity
- Support of Trade Unions, e.g. minimum wages
- Progressive tax system
- Subsidised house building
Communism (Command Economy)
- Government controls all major aspects of economy
- Industry owned and managed by government
- Price controls
- Little incentive
- Less efficiency
- More equitable distribution of resources
- Government can overcome market failure
Disclaimer. I am not an economist!
That said, I do have an opinion. This country for many years existed on a mixed economy. Thatcher destroyed some parts of it and Johnson is doing his best to destroy the rest. Destruction of the NHS, the rights to protest, destruction of Trade Unions, our social housing, our benefit system. The Conservatives are taking us towards a fully capitalist economy to favour the rich few. It is a dangerous time. Just read any novel by Charles Dickens to see what the world will look like under this type of government.
In my opinion, a mixed socialist/capitalist economy allows for a free economy with government intervention.
- Regulate inequlity
- Regulate environmental power
- Regulate monopoly power
- Intervention in schools and education
- Intervention in health
- Intervention in environmental control and waste management
- Regulation of businesses
Over to you, feel free to comment.