Capitalism or Socialism?
The majority of Naive Americans do not understand what capitalism and socialism mean. When asked we would respond that the USA represents 100% capitalism. Are most Naive Americans correct?
Lets first get the facts by using a dictionary. From MSN Encarta http://encarta.msn.com/:
Capitalism: An economic system based on the private ownership of the means of production and distribution of goods, characterized by a free competitive market and motivation by profit.
Socialism: An economic and social system under which essential industries and social services are publicly and cooperatively owned and democratically controlled with a view to equal opportunity and equal benefit for all. The term socialism also refers to the doctrine behind this system and the political movement inspired by it.
So the answer is: it depends on the subject and whom are we talking with.
Lets take a look at a few examples, which should put the answer in perspective.
If we look at some farmers, most in the southern part of the USA, we find that some are receiving Federal Aid because they are not able to compete planting their traditional crops (e.g., cotton) with other countries in the world. If the farmer is not competitive, then under capitalism two basic options are presented. Sell the farm to a different farmer or corporation that has the means to grow the same or different crops, or go out of business and move on to a different way of life. Simple but in reality some influential farmers get compensation from the US Federal Government to do nothing with their land and live very well. What for of Capitalism is this?
I live in the State of Minnesota. I am not a farmer, but our crops are mostly corn. Our neighbor to the East is Wisconsin. They do raise dairy cattle and make large amounts of cheese. I always though that the State of Wisconsin was the number one producer of dairy in the country, but it appears that they are in second place. The honors go to the state of California. The government regulates the price of milk and cheese. Some good years, due to good weather conditions, production of corn, milk and cheese goes up, therefore the associated prices go down, and there goes the government helping out farmers. I am not saying that the actions of the government or the farmers are right or wrong. The Naive American is just asking if under Capitalism, most farms should not be out of business?
Most Naive Americans own some type of automobile, truck or SUV for their personal transportation. Currently in the USA most vehicles use some type of fossil fuel. Businesses via lobbyist try to pass different laws to maintain the status quo with fossil fuels and inefficient automobiles. Very few Naive Americans continue to make large amounts of money with little or no work. The price of gas at the pump varies but a relative large percent of it goes into different federal and local taxes. The rest goes to the greedy oil companies to pay dividends and extravagant salaries and perks to executives. What is interesting is that no one can sell gas for less than or higher than a price range set by the government. What type of capitalism is this?
For my last example, we have K-12 education. A percentage of your taxes go to pay the corrupt and inefficient school system we have in our country. Are you able to skip that portion of the taxes if you do not have a child in school age or if you decide to send your kids to a private institution? My two sons attended a private military school. My wife and I made the decision several decades ago after watching the public school system in action.
One of my sons has two sons but they are still too young to attend K – 12 school. My oldest son has two daughters in school age K-12. They are attending a private school. So why would a Naive Americans pay taxes for public school and then send their kids to a private institution for an additional fee? The motivation is quite simple. The socialistic school system in the USA is broke and corrupt. Our kids are ranked 14th (not second or third) compared to other countries, yet the budgets are leading the list. School unions want more money to continue to perform poorly. Our government continues to give them more money. Is this a sign of capitalism or pure socialism? I personally think it is madness.
At this point in time, most Naive Americans are not too interested in the issues with education, they are more interested in the economy and how are they going to put food in their mouths and keep a roof above their heads. I believe we all understand and agree with this. What the government needs to do is induce a fundamental CHANGE in education to eliminate the current system and switch to one that is based on performance (good education implies good teacher making good salaries). If the approach for this change is to eliminate the public education system and replace it with private institutions, so be it. Pouring money into the current K-12 school system has proven a complete and total failure. Does our country need to be ranked LAST in the world before we take the appropriate action?
President Obama was elected on the premise that his presidency would bring CHANGE. Here is one critical issue that needs CHANGE before our high school graduates are not able to read, write or perform some basic arithmetic. Hopefully Mr. Obama’s economic plan does not include more money to provide more jobs for inept schoolteachers.
In conclusion, is the US the ultimate capitalistic bastion, or are we just portraying that and follow may socialistic principles in order to work less and get more without concerns for the rest of Naive Americans?
