| Has capitalism failed? | |
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| Oct 17, 2008 04:13 |   |
 | Has capitalism failed? The current global financial crisis has brought back the old subject: which is superior, capitalism or socialism (communism)? It is politically correct to blame the excesses of capitalism for the current financial crisis. I have noticed that almost all major English media are exploring this topic. Timesonline posted an article titled “Has Capitalism failed?”, which states that “the financial crisis has exposed capitalism's darkest imperfections. But it is still the best hope we have of creating wealth and opportunity for the many”.Apparently, it belongs to the Pro-capitalism. Other headlines like “ The end of capitalism” “Is this the end of US capitalism and “Capitalism Has Degenerated into a Casino'” are everywhere on the internet.” Obviously, these are against capitalism. Fininacial crisis is like a dormant volcano of capitalism, which erupts periodically. Why capitalism can’t terminate financial crisis permanently? Are financial crisis an incurable illness for capitalism? Has capitalism failed? What do you think? |
| Oct 17, 2008 06:37 | #1 |
| I think this is a great topic and definitely worthy of much discussion. It is expected that such a question would be raised during this crisis, but it makes one bad assumption, I believe: Capitalism = Unending Prosperity To assume that there is any economic plan that can produce infinite gains while also including people from every walk of life - smart, dumb, rich, poor, etc. - is crazy. LEONARDO calls it a dormant volcano that erupts periodically, but most people just call it an economic cycle. Right now we're at a low point in that cycle, and I'm confident that the cycle will continue to include more highs and lows in the future. If anything, I think that the biggest problem in America's mentality isn't necessarily capitalism, it's our addiction to debt. Whether it's the government or a single household, we wear debt like its a fashion, and right now that fashion is going out of style. As much as I hate to see it, it looks like China - a country whose people normally save their disposable income - is also beginning to buy into the idea of credit cards and living beyond its means. When that happens, I think you'll find that a financial crisis does not play favorites between capitalism and socialism. |
| Oct 17, 2008 09:25 | #2 |
| Agree, Summer. Must say that I think nowadays there really is not such thing as socialism in China any more. Anyway, if try to find something in common among socialist and capitalist leaders, that is greed. Socialism as an ideology is that all have plenty. That never has come true in any socialistic country. There have always been and will always be people who live much under sufficient income. Pepole who run the system have all plenty indeed. Capitalistic system is, if say it simply, based to idea that some people will have it all, other´s job is to produce wealth to leading minority. Bottom line is that in both systems few get much. So, have capitalism failed now that we have crisis again? I would say no. Tax payer´s money is transfered again and they will never have it back. Money doesn´t fade away, it just changes position from tax payer´s vallet to some other. China hasn´t totally experienced this financial crisis yet, it´s economy keeps growing, but people who have no much will have less all the time and some other will have more and more. Argument about greed is then attested. "it looks like China - a country whose people normally save their disposable income - is also beginning to buy into the idea of credit cards and living beyond its means.When that happens, I think you'll find that a financial crisis does not play favorites between capitalism and socialism." Sadly I must agree this. Carlos |
| Oct 17, 2008 19:59 | #3 |
| Communism is my dream: no government, no border (no visa required) ,extreme abundant materials, no classes, equal distribution. However, if our human natures evolution can match up this development level. Mismatch is a disaster, which you can see from the the collaps of Berlin Wall and Soviet Unions. Me and my Chinese friends are from a socialist country and now i live in an democratic socialist western country (I believe Finlands, Norway, Belguim Britain, France are also called socialist western countries in western economic books). And some of my friend live in US (I am not sure if they are in the black list). Through comparison, US capitalism has its unique glamour which attract energizing hard-working people with individual inclination. If I am not that old when US is recovered, I would like to be down across the border for my American Dream. |
| Oct 18, 2008 12:55 | #4 |
| Sorry to say, Marrie, but communism has always ment closed control, priviledged leading group, classes (belong to party, get a car and a better apartment and more bread and perhaps sometimes meat), executions of people who think different. That goes also with all dictatorships. As I said above, runner of every system is greed. And greed is endless natural recource. Carlos |
| Oct 18, 2008 17:31 | #5 |
| Carlos, I have to agree with you although it sounds not comfortable. Chinese saying: Human beings is much more fearsome than ghosts! |
| Oct 19, 2008 20:20 | #6 |
| GUEST2368 | Finanicial crisis is the inevitable cost of capitalism. Karl Marx's "Theory of Surplus Value" can justify it. The nature of capitalism is to create and maximize " surplus value" . To maximize surplus value, capitalists blindly increase productions. which leads to the excesses of capitalism. Free markets actually indulge in excessive production. Financial crisis is an economic cycle of capitalism. The last big attack on capitalism in 1930s led to reinforced government control over the financial market. After 1930s' financial crisis, US policymakers became Keynesians, while they failed to curb the economic bubble and the fraud in the entire financial market. |
| Oct 20, 2008 22:02 | #7 |
| The American ways of handling the financial crisis show an oxymoron. Nominally, western capitalist countries are of capitalism. The faith in capitalism has declined. The west ever picked on China's governmental control over the market. Now, USA bailout mearsure is evidently something learn from China. |
| Oct 21, 2008 11:07 | #8 |
| I think you could say that 100% greed-driven capitalism (robber barons, sweat shops, etc.) has failed in the past because of inhumane treatment, inequitable situations, and organized labor. The system can only work if there are expanding markets and/or new things being produced that people want or need. There are no guarantees in a finite world for continous growth in anything! The current mess in part is based on the belief that housing values will continue to rise, providing the basis for lots of credit and home equity loans based on an inflated unrealistic value of a house. Greed took over when people were rewarded for making so many bad loans, and greed took over where people got too much in debt based on unrealistic faith in the "value" of their house. Lots of things rippled out of this. I am guilty of over-simplification I'm sure. Any system can fail, but captialism has safety valves called inflation, recession, and depression. Those are mother nature's way of saying "you are having way too much fun!" So no, I don't think this is a failure in the capitalism system, but more of a failing in human beings becoming greedy and unwise in how much they buy on bad credit. On the other hand, a real strength of captialism is constant creativity, which is probably why so much American culture, clothes, music, technologies, etc., are desired across the world. The USA will recover, but it will take time. |
| Oct 21, 2008 21:35 | #9 |
| The USA will recover, but it will take time. Better not take too much time. The whole world has been affected by US financial crisis. Iceland has already gone broke. |
| Oct 21, 2008 22:05 | #10 |
| I've always thought of capitalism as the liberty to see an opportunity and profit from it. Unfortunately, making a profit of $$$ * 1.10 the following year doesn't satisfy many and even if did it would not continue for infinity; this leads to greed based capitalism and all of its inherent evils. |
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