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    Posted October 11, 2014 by

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    Why good socialism is better than bad capitalism


    Irakli Berdzenadze
    CEO | I.B. Capital Management




    "Democracy is the road to socialism" - Karl Marx


    Capitalism and socialism are somewhat opposing schools of thought in economics. The central arguments in the socialism/capitalism debate are about economic equality and the role of government: socialists believe economic inequality is bad for society and the government is responsible for reducing it via programs that benefit the poor. e.g. free public education, free or subsidized healthcare, social security for the elderly, higher taxes on the rich. On the other hand, capitalists believe that government does not use economic resources as efficiently as private enterprise and therefore society is better off with the free market determining economic winners and losers. When people in the United States and in many other countries worldwide are introduced to the concept of socialism - whether in the popular media or in a high school class - they are presented with a simple equation: socialism = a crippled economy that fails to meet people's basic needs + a totalitarian government. Stalinism, for example, is invoked as a model socialist government, one that brutally murdered anyone who dared oppose it, while the Soviet economy is repeatedly and incessantly visualized in terms of weary consumers standing in endless lines in order to purchase dull, defective products. This is another strongest propaganda too. That's why i think capitalism has it's strong propaganda too and i don't see any different between propaganda's of capitalism and socialism. Today many successful countries in Europe are socialist democracies. If we analyze their situation we see that good socialism is better than bad capitalism while socialism is for people and not for millionaires. It is only when capitalism fails that people and nations resort to alternative forms of political economy. A socialist system that is working well is one that is fully deploying the nation’s resources through a central plan that has the approval of the people. It would be superior to a capitalist system that is working so poorly that its adherents must find excuses for mass unemployment, widely diverging income classes, and deepening social pathologies. The price paid for any form of socialism is the loss of some degree of individual freedom, but when the only alternative is bad capitalism of the type described, a people willingly pay that price. But also it's better to understand that socialism isn't a communism, while this last is an extreme form of socialism.
    For better understanding i want to show you several reasons why socialism is better than capitalism for people and not for some of elite groups who are rich from middle-class population:


    1) Socialistic countries are successful (Denmark, Finland, Norway, Sweden.
    2) Socialism gives a high standard of living, high education system, free health care, and low crime rates.
    3) Capitalism is based only on personal interest, and not the interest of humanity, or any given countries population.
    4) Socialism is for people and not for millionaires
    5) Capitalism keeps on failing and having to be more and more regulated
    6) Socialism is Human society, Capitalism is a pathetic race for profit that leads to self-destruction.
    7) Capitalism equals lies
    8) Socialism encourages cooperation.
    9) Industrial Liberal Socialism is much better than capitalism
    10) Capitalism is not a political system, but an economic one.
    11) Socialism is more sensitive to signals of wealth inequality.
    12) A Socialism that permits more market signals and personal freedoms can be superior to a Capitalism that permits pursuit of profit by an elite manipulating public policy.


    It's important to understand each point of differences between capitalism and socialism to analyze why socialism is better than capitalism:


    Socialism: All individuals should have access to basic articles of consumption and public goods to allow for self-actualization. Large-scale industries are collective efforts and thus the returns from these industries must benefit society as a whole.
    Capitalism: Laissez-faire means to "let it be"; opposed to government intervention in economics because capitalists believe it introduces inefficiencies. A free market produces the best economic outcome for society. Govt. should not pick winners and losers.


    Socialism: Freedom of religion, but usually promotes secularism.
    Capialism: Permitted/Freedom of Religion


    Economic System
    Socialism: The means of production are owned by public enterprises or cooperatives, and individuals are compensated based on the principle of individual contribution. Production may variously be coordinated through either economic planning or markets.
    Capialism: Market-based economy combined with private or corporate ownership of the means of production. Goods and services are produced to make a profit, and this profit is reinvested into the economy to fuel economic growth.


    Private Property
    Socialism: Two kinds of property, personal property, such as houses, clothing, etc. owned by the individual. Public property includes factories, and means of production owned by the state but with worker control.
    Capitalism: Private property in capital goods is the dominant form of property. Public property and state property play a secondary role, and there might also be a limited number of collective property in the economy.


    Free Choice
    Socialism: All choices, including education, religion, employment and marriage, are up to the individual. All health care and education is provided through a socialized system funded by taxation. Citizens have free and equal access.
    Capitalism: All individuals make decisions for themselves. People will make the best decisions because they must live with the consequences of their actions.


    Socialism: The people are considered equal, laws are made when necessary to protect people from discrimination.
    Capitalism: Government does not discriminate based on race, color, or other arbitrary classification.


    Yes today i think that good socialism is better than bad capitalism, but if someone will ask me which one is better for me, as person who born in post-soviet union country i choose Socialism for my country while capitalism failed in eastern European countries. Socialism is for people and not for millionaires.


    And in last Many people talking about the failure of socialism but where is the success of capitalism in Africa, Asia and Latin America?

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