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What Is Socialism And Capitalism In Simple Terms?

Updated on March 5, 2012

What is Obama economically?

Obama's rise to power was nothing short of spectacular. It was so rapid that it left many of people playing catch up as to just who he was, but it is no longer difficult to understand where Obama is coming from economically and politically. Virtually all of his actions to lean toward a socialist economic and political position. Mr. Obama truly is changing America, but not in a way that is at all appealing to those that yearn for a fair capitalist system. Mr. Obama is what he is, a messiah to the socialists among us who have yearned for this day and a fright to the capitalists who see the last vestiges of capitalism slipping into the red waters.

Considering capitalism at its core consists of a belief in small government intervention in the free market, and reward of individual achievement, Obama could hardly be accused of being a capitalist. He is a liberal democratic socialist with visions of remaking America into Europe II.

Recent events are alarming for capitalists to say the least and they are left wondering how far this slide into socialism will go.

What is capitalism?

In short capitalism is the economic philosophy that economic growth is best sustained by the free market forces of supply and demand. It abhors artificial interference and manipulation from governments. Unfortunately or fortunately, depending on your political persuasion, capitalism has been a very rare thing in the history of man. Governments have never been able to resist the temptation to tinker, progressives never could stomach the inevitable social discrepancies that result from a healthy capitalism, and the greedy could not resist the temptation to scam the system. Much like socialism, capitalism requires an honest clientele to function correctly.

Party myths

It is a widely believed myth that Democrats lean toward socialism and Republican favor capitalism. Both parties have a vested interest in socialism, because socialism gives the government more control and governments crave control by their very natures. As George Washington said, "Government is not reason; it is not eloquence. It is force. Like fire it is a fearful servant and a terrible master."

The main difference between the parties is the speed with which they are consuming our liberties. The government has no will to curb its own aggression against personal liberty. The Republicans favor the slow train while the democrats ride the express.

In a recent online edition of Pravda, Stanislav Mishin wrote, "It must be said, that like the breaking of a great dam, the American decent into Marxism is happening with breath taking speed, against the backdrop of a passive, hapless sheeple, excuse me dear reader, I meant people. "

The question is: What do the people want?

Socialism

This economic philosophy comes from the works of Karl Marx, a German philosopher and political economist. In simple terms socialism is an economic philosophy preoccupied with economic equality for all workers. Theoretically this would be accomplished by a benevolent government to whom everyone would give their money and in return it would distribute it evenly among the body politic and everyone would live happily ever after. As Karl Marx wrote, “From each, according to his ability; to each, according to his need”.

On the surface it sounds very caring and benevolent, but as with capitalism it has never been successfully achieved because it to requires a selfless society and incorruptibly government in order to be properly prosecuted.

When both systems fail.

When socialism fails it can leave a residue of totalitarian governance or merely implode into a a social democracy that limps along after receding dreams of utopia. We in America need to ask ourselves if we want to become another Europe? If so why?

When capitalism fails it will self-correct, if it is left alone, because it is based on the native desire of the human spirit to survive and even thrive. Its failures can and will be painful, but pain has a purpose. Capitalism can only completely fail when it is arbitrarily replaced by another system of economics. This is what is happening in America now. We are financing the loss of our own liberties for the safety of servitude. Is this trade worth it?

People who are able bodied and of a sound mind will always find a way to survive and thrive. Socialism did not arise in Marx's brain because there was a successful capitalism, no, it arose because of an abusive aristocracy in Europe which monopolized the economy. The better cure would have been to provide access to capitalism for all citizens instead of creating a new benevolent aristocracy to administer the public money as it saw fit. This model ravaged eastern Europe which still bares deep scars and wounds from it today.

by User Musphot on Wikimedia Commons
by User Musphot on Wikimedia Commons

Power or Benevolence

 There are always those who think that they can fix the problems of others; that they can come as christs of reason and cure society of inequality, greed and avarice, but beneath the surface of every human heart lies the deceitfulness of power. 

I am sure that Mr. Obama believes that his brand of socialism is the true mythology of hope and that his understanding of the human condition is essentially correct and a little more than half of the electorate in America either agreed or didn't understand where he was coming from.  I do not believe that any American President takes the oath of office in order to perpetuate harm on the nation, but regardless of their intentions, their ideologies that lead to certain actions can and have been injurious at times.  I believe that our misguided fascination with socialism springs from the heady days of progressive change that occurred post WWII and did in fact change some things that needed changing in this country, but like the mythological magic churn that churned out so much salt it turned the sea salty the progressive movement can never recognise when its work is done and like that magic churn it cranks away with its societal cures whether we need them or not.

Educating ignorance

Part of the problem is lack of unbiased education. Progressives founded and have been in charge of our public educational system since its inception. Again I want to reiterate that I do not believe that progressives wish harm on the nation, but instead are driven by a sort of arrogant belief that the end justifies the means and that they, better then others, can see what that end should be. Because of this, the teaching of history has slowly eroded into a narcissistic self-flagellation designed to exorcise the demons of guilt that they believe rest upon our society because of all of its excesses and abuses. Anything negative that can be discovered, inferred, or assumed about any historical figure that took an important part in the founding of the United States is exploited in the practice of national penance. The revision of history covers the spectrum of selective propaganda to outright re-writing of events. The result is ignorance of the facts and an inability on the part of Americans to make informed choices. And this is all a part of the way socialism works. It consistently strives to even out society according to its handlers views. Unless you trust the handlers to inform you of the way the world is you might not be so eager to follow their economic plans.

The capitalist way.

Our current economic situation can be used as a good example of how capitalism might have worked. In fact there is a good chance this crisis would be much less aggressive or not at all had market forces been allowed to work from the beginning instead of having the Government in bed with Freddy and Fannie in the first place. That being said, what would have happened if we had just let the market punish bad choices? It would have been painful, but it sure would have been educational and on the other side of the crisis we would have been a much chastised and stronger people. As it is now the Government is jumping in with borrowed money, that we and our children will have to pay back, to pay off the mistakes of its supporters and cronies. All the while swallowing market shares of private companies and setting up wage czars to monitor compensation. All of this from an institution that in recent years has consistently demonstrated the worst fiscal responsibility and out right corruption. Who would trust the Government to run anything right?

Americans, do we want socialism? Do we want to turn over our liberties to a "fearful servant and terrible master?" Do we want to assuage our conscience of guilt by turning over our right to choose how we show charity to a bureaucracy? Do we want to be told how to live, what to believe, and who our doctors will be. If we the people do nothing the Government will stop at nothing.

Your opinion.

Do you favor a capitalist economy or a socialist economy?

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