There’s a lot of talk about capitalism vs. socialism lately among both millennials and older generations due to the rise of socialism ideologies within the United States within many in the Democratic Party. Whatever your views are now is totally up to you. Just make sure that you are informed and that you fully understand what both terms mean.
In this post, we’ll define both socialism and capitalism and show how capitalism allows you far more opportunities than socialism in the long-run.
This is important because the way things go politically affects our ability to work in the careers we want to work in, rather than be told by the Government what to do, as well as the amount of money you can make, and other factors.
Let’s start with a definition.
What is Socialism?
Socialism, based on the philosophies of Karl Marx who inspired Hitler during Nazi Germany, is a system that is supposed to level the playing field for different income levels and abilities so that everyone is paid the same amount for similar work. But this idea exists only in a vacuum. Because there are only two classes within a Socialist system, it forces one to rise to the top (the elitist class) and the others to be subservient. Therefore, it has been proven over and over again in history that socialism can only end with one class dominating the other. It is not a method to allow equality. It is a method to control the people.
For example, some say they would like to have a “universal income.” While it might be nice to have a fixed income that you can depend on, the price you may pay for it may be too great. The truth that you may never hear from the media is that nothing is ever free. Someone has to pay the bill. This leaves the rich and middle class paying for everything the lower income people need, and it ultimately crashes the economy. This is what happened in Venezuela which is why the people there are now desperately trying to get out of Socialism to have a chance for survival.
What is Capitalism?
Capitalism, unlike Socialism, doesn’t give everyone the same income, ask them to live in the same low budget housing, or to be just like everyone else. Instead, it says that the individual is strong enough, smart enough, and resourceful enough to figure things out for themselves. It empowers the individual, rather than big Government, and allows each of us to decide the path we’ll choose in life, without interference from the Government.
This frees the individual to find their place in life and decide whether they will work as an employee (another way to get a regular, fixed income, by the way), or you can choose to start your own business and perhaps become the next billionaire like Mark Cuban or Richard Branson.
The truth is that Socialism is a lie that pretends to give people what they need while stealing their most important asset: their freedom of choice. Investopedia.com has more information on the socialist view if you want to read more.
If you want to determine your income, you should realize that it is Capitalism that allows you to do this. Whether you make $8 per hour of $800 per hour all depends on your unique skills, abilities, and most of all, your actions.
All of the greatest inventions that have ever been done in the world were created by a capitalist somewhere in the world who said, “I can do it myself.” Capitalism also empowers others because business owners can then hire other workers to help them with their businesses if they don’t want to run their own companies.
Another important tenet of Capitalism is the fact that it does not allow the public to own anything. If you were in a fully socialist society, you would never again be able to say, “That’s my boat, my car, or my house.” Everything belongs to the community and everything is always for the “social good,” not the individual.
You can feel free to adhere to socialist views if you choose, but just remember the price we will all pay if it ever became the rule of law. Russia, which used to be a socialist country, is now a free constitutional republic and they are moving away from socialism. They have learned from the past and how socialism depletes the economy and lowers the standards of the individual. And they do not want to go back to that philosophy.
As you think about how you view life, the United States, and the world, think about your philosophy and ask yourself why you believe what you do. And be thankful that you live in a country that allows freedom of speech, freedom of choice, and has the moral integrity to trust the individual, not the Government to decide which path you will take in life.