Note: A column from 2008: Somewhat prophetic in its scope.
These past few weeks have been very disconcerting with regard to the path our government has chosen in these troubling economic times, although often in times of crisis, leaders expose deeply embedded beliefs as they frantically search for solutions to an overwhelming problem. I’m concerned our government may be out of answers and we’re going down a road that could change our economic system as we know it.
Winston Churchill once said, “The inherent vice of capitalism is the unequal sharing of blessings; the inherent vice of socialism is the equal sharing of miseries.”
Capitalism is an economic system in which the free enterprise of investment and ownership provides production of a product and/or service, distribution and the exchange of wealth between private individuals or corporations. Its success is directly relative to the productivity of its components. It’s an economic system characterized by a free market for goods and services under the control of private entities.
Capitalism is designed to reward those who work hard; however, it has equal consequences for those who decide not to pull their weight. Although capitalism clearly results in different levels of economic success, it also clearly provides equality in opportunity and promotes the entrepreneurial spirit. The people are in control of their future.
Socialism is the economic theory of “collective ownership” and administration of the means of production and distribution of goods. Socialists believe that capitalism unfairly provides power and wealth to only a small segment of society that controls the major flow of capital. Socialists advocate a system whereby wealth and power are distributed more evenly by the government in an effort to eliminate class warfare. Socialism is designed to balance the economic worth of each citizen and for the government to provide for the needs of the people. The government is in control of your future.
Karl Marx, often referred to as the “father of socialism,” said, “From each according to his abilities; to each according to his needs.” Socialism suppresses the entrepreneurial spirit by eliminating the incentives for productivity, while capitalism rewards productivity and creates consequences for fiscal “slothfulness.”
Or is the equation changing?
The government’s bailout of businesses that knowingly breeched the faith of the people is setting a very dangerous and unjust precedent. Most assuredly, the government has shown its down card, and the fact that these lending institutions were not allowed to suffer any consequences for their actions is unfathomable and unfair to hard-working Americans.
Probably the most tragic result of this “economic nightmare” of a decision made by our government is that it truly showed the will of the American people really doesn’t matter, and our nation’s political leaders, who were elected to represent the people, truly do not.
Is capitalism in danger? Is there a resolve among our nation’s leaders to take the problem out of the hands of the people? Are we headed for a major change to our economic system?
Karl Marx also said, “Democracy is the road to socialism.”
Only if our leaders decide to take that path.
Mark Caserta is a Cabell County resident and a regular contributor to The Herald- Dispatch editorial page
Free State Patriot 