I was recently asked by a long-time friend to clarify what I understand to be each of these three things: capitalism, communism, and socialism. Let's go to wikipedia, like any lazy capitalist would:
Capitalism: Capitalism is an economic system in which wealth, and the means of producing wealth, are privately owned and controlled rather than state owned and controlled. Through capitalism, the land, labor, and capital are owned, operated, and traded by private individuals either singly or jointly, and investments, distribution, income, production, pricing and supply of goods, commodities and services are determined by voluntary private decision in a market economy. A distinguishing feature of capitalism is that each person owns his or her own labor and therefore is allowed to sell the use of it to employers. In a "capitalist state", private rights and property relations are protected by the rule of law of a limited regulatory framework. In the modern capitalist state, legislative action is confined to defining and enforcing the basic rules of the market, though the state may provide some public goods and infrastructure.
Communism: Communism is a socioeconomic structure and political ideology that promotes the establishment of an egalitarian, classless, stateless society based on common ownership and control of the means of production and property in general. Karl Marx posited that communism would be the final stage in human society, which would be achieved through a proletarian revolution. "Pure communism" in the Marxian sense refers to a classless, stateless and oppression-free society where decisions on what to produce and what policies to pursue are made democratically, allowing every member of society to participate in the decision-making process in both the political and economic spheres of life. As a political ideology, communism is usually considered to be a branch of socialism; a broad group of economic and political philosophies that draw on the various political and intellectual movements with origins in the work of theorists of the Industrial Revolution and the French Revolution. Communism attempts to offer an alternative to the problems with the capitalist market economy and the legacy of imperialism and nationalism. Marx states that the only way to solve these problems is for the working class (proletariat), who according to Marx are the main producers of wealth in society and are exploited by the Capitalist-class (bourgeoisie), to replace the bourgeoisie as the ruling class in order to establish a free society, without class or racial divisions.
Socialism: Socialism refers to a broad set of economic theories of social organization advocating public or state ownership and administration of the means of production and distribution of goods, and a society characterized by equality for all individuals, with a fair or egalitarian method of compensation. Modern socialism originated in the late 19th-century intellectual and working class political movement that criticized the effects of industrialization and private ownership on society. Karl Marx posited that socialism (the disappearance of class and therefore state) would be achieved via class struggle and a proletarian revolution after a long transitional stage from capitalism called the Dictatorship of the proletariat. Socialists mainly share the belief that capitalism unfairly concentrates power and wealth among a small segment of society that controls capital, creates an unequal society, and does not provide equal opportunities for everyone in society. Therefore socialists advocate the creation of a society in which wealth and power are distributed more evenly based on the amount of work expended in production, although there is considerable disagreement among socialists over how, and to what extent this could be achieved.
By these definitions, I am a capitalist who believes that the capitalist system is by far the very best system of these three. I believe that my country, the United States of America was founded to be a capitalist state, and while not a pure capitalist state, even on day one, was designed to follow the capitalist model as closely as possible. What has occurred since then is that our politicians, especially the more liberal-leaning ones, have continually been moving this country further and further away from capitalism, closer to communism and/or socialism. I am very much against communism and socialism as I feel that your reward should be relative to your efforts. Those who work harder and take risks should earn more. The government has a role to referee the game, but should not have the right to take away points from the winning team and give them to the losing team just so that things are fair. Hard working capitalists should not be taxed just so that their money can go to sustain the lives and livelihood of those who do not want to work. Plain and simple. As a state, we should care for those who are truly unable to provide for themselves, but we should not allow those who are able to work to simply sit back and do nothing yet receive government provided shelter and food.
I do realize that capitalism does allow for tiers to be created in our society, yet I believe that a true form of capitalism where people are not barred from rising up through those tiers based on race, religion, politcal affiliation, etc. is possible, though I am also aware that my country has not adhered to that idea in the past. I do also believe, however, that we are working towards an America that is more equal in this regards. In a capitalist societly, like ours, some will have more than others, but in most cases, what you have is a result of the hard work and dedication of yourself, those around you, and in some cases, those who came before you. In a communist or socialist society, no matter how hard you work, no matter what you do, you can never rise above your current cirumstances. In a capitalist society, anyone can achieve anything. I think one of these paths is far better than the other.
If you look at the socialist and communist governments that have plagued the Earth, you will also find a very flawed and inaccurate deployment of the ideals of those systems. While everyone is supposed to be equal in those systems, you will find, in fact, a group of core leadership at the center of those governments, who were, somehow, mysteriously much more wealthy and well-off than their equals who were the back-breaking laborers of the government-led businesses of the state. A small powerful, wealthy group at the top with a large labor force supporting them? Sounds like a twisted version of capitalism to me.
I believe in democracy and I believe in capitalism. I believe that a capitalist state cannot exist without government, but that government should serve the capitalist state, not the other way around, which is where America is heading. I believe in a pure democracy. Literally, one vote for each person and the side with the most votes wins. No court oversight, no electoral college. We have the technology and ability to have a pure democracy here in America and I think that it is time. Any and all social and economic issues should be decided by ballot, not by courts, and not by government, but by the people of the capitalist democracy.
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