In the study of economics, there are two major schools of thought- socialism and capitalism. In my point of view, true capitalism is the answer for our society. In this essay, I will try to explain socialism and capitalism, explain capitalism from its original theory to give my point of view, and lastly, I will answer how politics, taxes, and education should work in the system and how we should get involved.
Note: This is just for America.
Socialism:
There are many defi nitions of socialism and varying sub-topics of the subject, however, the main idea is the ownership of production. In a socialist system, society owns the means of production and those means are shared with the rest of society. This is where ideas of welfare come in. A lot of people do not want to share their “wins” whereas a bunch of other people feel that due to natural disadvantages (diseases, physical capabilities, historical disenfranchisement, etc.), we should pursue more equitable systems that allow everyone to have a basic standard of living.
Capitalism:
Same with capitalism, it has many defi nitions and subtopics on the subject, but the main idea here is the old “pull yourself by your bootstrap” idea. The means of production are privately owned, and what you make is what you keep. This is what brews the whole “competition and greed” arguments. Although people like the idea of keeping what they make, due to those same disadvantages mentioned above, there seems to be an exponential growing cost of entry overtime for many people who try to participate in industry. Those with the means and knowledge tend to take over entire markets ( monopolies and oligopolies). Leaving those who don’t behind, thus creating huge economic gaps (the rich getting richer and the poor getting poorer concept).
Original Theory of Capitalism:
The original theory of capitalism by Adam Smith revolves around the idea that people are naturally self-serving and in the pursuit of people’s natural self-interest, society can maintain itself.
Misconceptions and How we ought to live:
Moreover, the idea of capitalism is for all of us to pursue our natural self-interest, and take those interests to market, and the market will pay us in proportion to society’s need for such products or services. Our focus ought to be a passion, what we are good at, and how we can scale it to society to make a living. Due to the amount of work it takes to bring something to scale, one has to somewhat like what they are doing and be good at it. The issue is many of us choose money over our natural interest. Thus allowing owners to keep wages low and prices high. For example, McDonald’s workers only make what they make because somebody keeps taking the job! Multiply by however many people who think the way of capitalism is money and wallah! You have your wage/poverty gaps, and by the time people look up, those who pursued naturally own everything, and everyone else who chose wrong thinks they got overlooked and want handouts.
Now, many arguments can be made to this point… of course. My only ask is for whoever reads this, to take it as a point of view and nothing more. This IS NOT a true argument, just a viewpoint, my viewpoint. My hope truly is success for everyone, I just think we’re looking at our system wrong.
Politics, Taxes, and Education:
To the arguments about handouts, I say that’s the reason for our tax system. If we each pay our fair portion, we can help those in need. To the argument about how the government will spend that money, I believe we ought to elect individuals who want to be there, care to be there, and have an idea of what they want to do (positively for everyone) when they get there. Lastly, to the argument for how can we trust people or get everyone involved, etc. The answer I give is education. Economics is a huge part of our everyday lives and who we elect in government should refl ect our economic needs. However, we can’t do that as a whole if only parts know about the system in which we live.
If you’re reading this, get educated on economics, spread the word, and join in on changing our old education system into one that teaches economics and how it truly should work. This way we can get people to stop taking low-paying jobs, stop companies from raising prices, be fulfi lled as a nation in what we do, and take care of those who cannot.
Conclusion:
I am not a Republican or Democrat and this is not some political move, again, this is just a point of view based on our actual reality as Americans. I am just a man who truly believes that if we each take a moment and peruse what we like, take a moment to educate ourselves, and get involved; we each can live a fulfi lled life.
