"“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change." Charles Darwin
Capitalism is based on the Darwenian concept of survival of the fittest. While I am aware of no nation that practices a pure form of this economic system, several Western countries use a form of capitalism at the core of their economies. Scaled-down examples of capitalism are flea markets, bazzars and black market trading.
Properties of Capitalism
- Social/cultural rules and political laws define the environment.
- Supply and demand provide environmental pressures.
- Those that best "fit" that environment survive and maintain the rules/laws.
- Those that can't/don't thrive in the system, and otherwise lack participation, are culled.
- Successful capitalistic systems tend to be open and competitive.
- A healthy capitalistic system results in economic incentives.
Advantages of Capitalism
- Capitalism is an internally stable economic system, in that it is consistent with human behavior. People understand that life is not fair - there's no "free lunch". You have to work to survive, and only the lucky who manage to thrive within the socio-economic matrix make it to the top. As long as there is a belief/hope that one can advance in the system, there is an incentive to participate.
- Capitalism is also externally stable, in that survival in a capitalistic system requires innovation and flexibilty to keep up with the changes in supply and demand. Such a system is generally prepared to deal with the influx of competition from external sources.
- Large populations are likely to be diverse, which is beneficial to healthy capitalistic systems.
- Large, diversified societies tend to gravitate towards heirarchical social systems; capitalism easily adapts to such structures.
Disadvantages of Capitalism
- It is not acceptable in most modern societies to allow portions of their population to be "culled".
- Those in power tend to construct rules that limit diversity and competition, thereby weakening the flexibility and strength of the system as a whole.
- Vast imbalances in opportunity encourages revolt, which disrupts and destablizes the system.
Remedies for Capitalism
- Create secondary social mechanisms to support those that do not "fit" in the socio-economic system.
- Encourage the inclusion of all members of the population to compete, and open up competition to external markets, in order to maximize diversity and flexibility.
- Educate the elite to the systemic benefits of resource distribution, and encourage incentives for such distribution."
Doesn't matter, the world seems to be on the road to recovery already .. Great news! ... and only a few days after that G20 summit! ... Magic! :-)
”But if thought corrupts language, language can also corrupt thought." George Orwell
"Doublethink means the power of holding two contradictory beliefs in one's mind simultaneously, and accepting both of them." George Orwell
Charles: Change ... or die!
George: Is this an order?