From: jfh@reef.cis.ufl.edu (James F. Hranicky)
Newsgroups: alt.politics.libertarian,alt.society.anarchy
Subject: Re: the most equitable economic system
Date: 10 Nov 92 03:30:22 GMT
Followup-To: alt.politics.libertarian
Organization: Univ. of Florida CIS Dept.

Well, you seem to think that capitalism is the de facto system in
most areas of the world...let me enlighten you (I hope).

In article <1992Nov4.165629.49831@ccvax.ucd.ie> x551_003@ccvax.ucd.ie writes:
>Capitalism works ????!!!!?????
>
>Capitalism is an international system, the fact it buys you a
>car, a house and a reasonable jobs proves nothing. Even the fact
>that your town/country/continent is ok proves nothing. However

Yes it does prove something: that "capitalism" (I use the term loosely)
has allowed those people who can buy cars, houses, etc., can afford to 
spend money on things which are not necessities, because "capitalism" has
produced enough of life's necessities to allow these people to spend money
on things not as dear to life.

Before I go on, let me give my definition of capitalism:

An politico-economic system which has the following traits:
  
 1) A limited government whose sole purpose is to defend individual rights
    and property rights (which are actually the same thing).

 2) Lack of government regulations on business transactions, including
    exportation and importation of goods: no export or import tariffs.

 3) A stable currency, preferrable based on gold (a stable currency, as far
    as I am concerned, is the ultimate foundation of capitalism and freedom),
    and the absence of a government monopoly on currency issue, as well as a 
    balanced government budget.

 4) Minimal Taxes to fund the necessary functions of government.

Note that according to my definition, capitalism does not exist currently 
in the world...it has already been taken away and replaced by mixed
economies, i.e., mixtures of freedoms and restrictions on actions, property,
and business. 

>1.  Capitalism has been unable to develop at all a significant part
>of the world.  many countries still suffer from periodic famines
>and rely entirly on the export of cash crops.(I would argue this
>in fact is part and parcel of capitalism brother Imperilism)

You are right that capitalism has been unable to develop a significant
part of the world...it was never given the chance. True capitalism is the
philosophical opposite of Imperialism...why attack a country with whom
you trade peacefully goods and services?

>2.  Capitalism has left many countries including my own
>underdeveloped.  We currently have an unemployment rate
>of 20%++ and 1/3 of our population lives below the
>poverty line.

I doubt seriously your country even remotely approaches true capitalism.

>3.  Capitalism (of the market variety) has been unable to develop
>the Eastern European economies.  They were crap under state capitalism
>they are closing down under market capitalism.  Even Germany, one of
>the most vibrant capitalist economies has failed so far to develop
>Eastern Germany to any significant extent.

There is no such thing as "state capitalism." Capitalism rests on the 
principles of freedom and responsbility for one's own life. It took
two+ *centuries* for the "capitalist" countries of today to attain the 
standard of living they have. Rome wasn't built in a day.

>4.  Capitalism is still prone to periodic crisis.  The latest one shaking
>the worlds economies at the moment demonstrates how little control anyone
>has over the beast once it runs amok.

The violent swings in the business cycle can be attributed to the inflationary
policies of the worlds central banks...central banks are not a part of true
capitalism. As always, the problems in today's economies can be traced back
to bad government policies, and are not the fault of capitalism.

>5.  Capitalism still cause wars that result in the slaughter
>of millions of working people.  Iraq was just one example of this
>, there are countless others.

True capitalism does just the opposite--it causes more prosperity for everyone.
What does cause war is the fact that countries which do not operate under
capitalist modes of production have less goods and services for their citizens,
and feel the need to try and plunder those that do.

>6.  Capitalism divides one section of our class against another
>and hence maintains the oppression of women,racism and other
>oppressions.

True capitalism raises the standard of living for everyone, but at different
rates...people get rich by providing the consumers with the best goods
at the lowest prices...but those who buy the goods are also now better off
than they were. The true measuring rod of wealth for a country is the number
of goods and services per capita, and capitalism is the most efficient 
method of producing those things. If the world were to return to nineteenth
century capitalism, or even better, true capitalism, the world would 
be better off than it is now.

>Need I go on. !!!!
>
>It is true that no other economic system has yet replaced capitalism
>for any period of time.  It was however once true that no economic
>system had ever replaced feudalism.  Eventually however it happened!!

Wrong. Capitalism is already gone, replaced by massive Welfare States
and Socialist states. We are on the path towards feudalism again,
unfortunately.

>Andrew

Newsgroups: alt.politics.libertarian