Is Capitalism Flawed?

[RealBitcoin]

In a capitalist country with 2 million people, all 2 million have the freedom to start a business, innovate, build better things.

In a socialist country with 2 million, only a small fraction will have the freedom to start a business, innovate, build a better product.

Capitalism although not perfect is a superior system for innovation and advancement. This is why russia and china have been forced to adopt free markets of capitalism over time. Its also the reason why venezuela a country rich in oil has suffered by attempting to nationalize toyota and making constant attacks on the private sector under a pro socialist banner which have reduced standard of living to a dramatic degree.

The thing socialism is best for is keeping people from having electricity and modern plumbing the way socialist north korea forces its people to live in an era before electricity was discovered. Socialism is only good for restricting innovation and progress and keeping people enslaved.

That is not true. You only have the freedom to innovate if you have capital to start up a business.

How to get capital?

1) Well either you are born in a rich family ( which most of us arent)
2) You apply for a business loan from a bank

But here is the catch, the bank requires a collateral. So are you willing to put your house as collateral (if you even have one, usually you have that under a mortgage already), given that 90% of small businesses go bankrupt after 6 months or something like that??

Yep small businesses have a 90% failure rate, and then you not only lose your business but also your house that you put up as collateral.

Brilliant isn't it. Now you are a homeless guy enjoying the wonders of capitalism.

[CryptoBry]

In a capitalist country with 2 million people, all 2 million have the freedom to start a business, innovate, build better things.

In a socialist country with 2 million, only a small fraction will have the freedom to start a business, innovate, build a better product.

Capitalism although not perfect is a superior system for innovation and advancement. This is why russia and china have been forced to adopt free markets of capitalism over time. Its also the reason why venezuela a country rich in oil has suffered by attempting to nationalize toyota and making constant attacks on the private sector under a pro socialist banner which have reduced standard of living to a dramatic degree.

The thing socialism is best for is keeping people from having electricity and modern plumbing the way socialist north korea forces its people to live in an era before electricity was discovered. Socialism is only good for restricting innovation and progress and keeping people enslaved.

That is not true. You only have the freedom to innovate if you have capital to start up a business.

How to get capital?

1) Well either you are born in a rich family ( which most of us arent)
2) You apply for a business loan from a bank

But here is the catch, the bank requires a collateral. So are you willing to put your house as collateral (if you even have one, usually you have that under a mortgage already), given that 90% of small businesses go bankrupt after 6 months or something like that??

Yep small businesses have a 90% failure rate, and then you not only lose your business but also your house that you put up as collateral.

Brilliant isn't it. Now you are a homeless guy enjoying the wonders of capitalism.

There is no perfect system because all the systems are made by man who is not perfect in anyway. However, human beings can be so creative and full of ideas and so far many of the good ideas have been applied. We are not yet a perfect society nor we will be but looking at the history we already made so many progress.

As to starting a business, there have been so many success stories where entrepreneur started with only a limited capital...sometimes they saved from their meager income so that they can start a small business that eventually flourish. Remember that in many cases, limitations are usually started in the mindset.

In many of these success stories, there would always that element of sacrifice, hardwork and not complaining on things everyday but just continue on doing the things that can help the business in anyway.

The question is: Are we ready for those things?

[deisik]

In a capitalist country with 2 million people, all 2 million have the freedom to start a business, innovate, build better things.

In a socialist country with 2 million, only a small fraction will have the freedom to start a business, innovate, build a better product.

Capitalism although not perfect is a superior system for innovation and advancement. This is why russia and china have been forced to adopt free markets of capitalism over time. Its also the reason why venezuela a country rich in oil has suffered by attempting to nationalize toyota and making constant attacks on the private sector under a pro socialist banner which have reduced standard of living to a dramatic degree.

The thing socialism is best for is keeping people from having electricity and modern plumbing the way socialist north korea forces its people to live in an era before electricity was discovered. Socialism is only good for restricting innovation and progress and keeping people enslaved.

That is not true. You only have the freedom to innovate if you have capital to start up a business.

How to get capital?

1) Well either you are born in a rich family ( which most of us arent)
2) You apply for a business loan from a bank

But here is the catch, the bank requires a collateral. So are you willing to put your house as collateral (if you even have one, usually you have that under a mortgage already), given that 90% of small businesses go bankrupt after 6 months or something like that??

I always strongly disagree with this stance

I have already written a good amount on this before, but it seems to be worth repeating again. As I claim, capital is the last thing you need, while the primary thing that you actually want to find first is a selling idea. It could be said that a good idea sells itself on its own. If you have such an idea, investors will be happy to provide you enough capital to bootstrap it. The problem with businesses that go bust within half a year is that they are looking to push forward something which is of no particular interest to ordinary folks

[pitham1]

In a capitalist country with 2 million people, all 2 million have the freedom to start a business, innovate, build better things.

In a socialist country with 2 million, only a small fraction will have the freedom to start a business, innovate, build a better product.

Capitalism although not perfect is a superior system for innovation and advancement. This is why russia and china have been forced to adopt free markets of capitalism over time. Its also the reason why venezuela a country rich in oil has suffered by attempting to nationalize toyota and making constant attacks on the private sector under a pro socialist banner which have reduced standard of living to a dramatic degree.

The thing socialism is best for is keeping people from having electricity and modern plumbing the way socialist north korea forces its people to live in an era before electricity was discovered. Socialism is only good for restricting innovation and progress and keeping people enslaved.

That is not true. You only have the freedom to innovate if you have capital to start up a business.

How to get capital?

1) Well either you are born in a rich family ( which most of us arent)
2) You apply for a business loan from a bank

But here is the catch, the bank requires a collateral. So are you willing to put your house as collateral (if you even have one, usually you have that under a mortgage already), given that 90% of small businesses go bankrupt after 6 months or something like that??

Yep small businesses have a 90% failure rate, and then you not only lose your business but also your house that you put up as collateral.

Brilliant isn't it. Now you are a homeless guy enjoying the wonders of capitalism.

Basic premise - all businesses are capital intensive. Not strictly true. A lot of businesses have been started in a garage, with a good business idea.
You could have a day job and save the capital required to start a business (In the services sector) in a year's time.

[shimozukawa]

Yeah and i guess not only him,but me also one of them who's having a money for under than $5000/year.
based on my estimation average salary in my country around $3000/year and we worked for more than 10 hours,
(more likely slavery other than working)
and what OP said was half correct and half incorrect,everything what he said was real and i can see it in my own country.
it's total flawed system for some people,but most of the using their authority to create their own wealth.

the real question is,what we can do to make it better ? nothing,because human is a passionate being,
if he can create 1 ship,he will create another one and another.

This shocks me, as the minimum wage in Thailand is 300 baht (~$8.50) per day or ~$2230 per year. The average wage is obviously dragged down by the vast majority of farmers, but the minimum wages in Bangkok are a lot closer to $3800 per year. For that reason, it seems difficult to believe there are many English-speaking nations where the average salary would be $3000 per year.

[Cosbycoin]

Capitalism is an efficiency based system, so I can't see how it's flawed...
People make it a flawed system when they mix capitalism with politics and oppression, and at this point it may not even be called capitalism anymore.

Yes, no system in itself is flawed or destructive but the people who implement these systems make them useless. Our politicians always try to mold these systems according to them whether its capitalism or socialism or any other system. I never curse systems; I am always against the executioners.

[Vohoanghiep]

Is Capitalism flawed? I used to believe that Capitalism solves issues, but if I really look around me, it actually only creates more issues that were not here before.

> There are many rich people with tons of capital but there are more unemployed people that will not have access to that

> People are living in luxury mansions and driving very expensive car, and then kids are starving in other places

> Profits of companies is going up, but real wages going down, people are living paycheck to paycheck

> Everyone is in debt, nobody has any savings, and most people are working part time jobs

> Nobody has a house, nobody can afford one, yet real estate speculators own thousands of them

> Banks have trillions of $ of money, but they still charge you 50$ / transaction because of their greed

> People have no future prospects, no career opportunity, they just live from paycheck to paycheck trying to pay off the debt and buy some shit GMO food filled with poison, because why sell healthy food to the public when the GMO food is more profitable?


It looks to me like Capitalism is flawed. Nobody has any money and everyone is suffering. I think a universal income must be implemented as fast as possible.

My country is a socialist country. However, the stratification is evident between the poor and the rich, and between business owners and workers, they generate profits based on product price increases and low wages. But there are still a lot of people who accept jobs because they are afraid of unemployment. The rich find ways to get richer, they never share their wealth with the poor. Perhaps because of integration with the world that my country is gradually showing signs of a capitalist country. In addition, there are also many benefactors who help the poor and disadvantaged people, but this rate is very low. I need a fair and happy society

[audaciousbeing]

Is Capitalism flawed? I used to believe that Capitalism solves issues, but if I really look around me, it actually only creates more issues that were not here before.

> There are many rich people with tons of capital but there are more unemployed people that will not have access to that

> People are living in luxury mansions and driving very expensive car, and then kids are starving in other places

> Profits of companies is going up, but real wages going down, people are living paycheck to paycheck

> Everyone is in debt, nobody has any savings, and most people are working part time jobs

> Nobody has a house, nobody can afford one, yet real estate speculators own thousands of them

> Banks have trillions of $ of money, but they still charge you 50$ / transaction because of their greed

> People have no future prospects, no career opportunity, they just live from paycheck to paycheck trying to pay off the debt and buy some shit GMO food filled with poison, because why sell healthy food to the public when the GMO food is more profitable?


It looks to me like Capitalism is flawed. Nobody has any money and everyone is suffering. I think a universal income must be implemented as fast as possible.

My country is a socialist country. However, the stratification is evident between the poor and the rich, and between business owners and workers, they generate profits based on product price increases and low wages. But there are still a lot of people who accept jobs because they are afraid of unemployment. The rich find ways to get richer, they never share their wealth with the poor. Perhaps because of integration with the world that my country is gradually showing signs of a capitalist country. In addition, there are also many benefactors who help the poor and disadvantaged people, but this rate is very low. I need a fair and happy society

In every climes of the society, the rich does not owe the poor any explanation for them being rich or for them being poor and that is the opportunity capitalism provides because not all those that are rich today are from rich families and some change the stories of their generation through their own individual effort because the environment and the economic system they are part of give their opportunity. Its not all perfect for capitalism but its still better than others in my opinion.

[bcnaranjo]

Yes just like other systems.

This is pure capitalism at work. Investors and limited partners come to realize that funds are not performing, and they pull the plug on them. Non-performing funds die, those that do well survive, new funds crop up and the industry as a whole gets right-sized. Some looters get away with their riches, but mostly, their careers are over.

[PedroLinh]

Capitalism works by maximizing profits by means of automation but in the process destroys the value of the products it produces. The danger is in capitalism ability to self disintegrate without ability get itself together on it's own and thus make societies descend into perpetual pessimism. Capitalism is a flawed system, but all other systems are even more flawed.  Are we doomed? I think not. The solution will come from technological advancements - as always.

[deisik]

Capitalism works by maximizing profits by means of automation but in the process destroys the value of the products it produces. The danger is in capitalism ability to self disintegrate without ability get itself together on it's own and thus make societies descend into perpetual pessimism. Capitalism is a flawed system, but all other systems are even more flawed.  Are we doomed? I think not. The solution will come from technological advancements - as always

Could you expand more on this?

Especially on the emphasized part? I don't understand how capitalism "destroys the value of the products it produces". What do you mean by this? Further, you say that capitalism is prone to disintegration but we have capitalistic societies successfully existing for many hundred years already (say, in Britain). So it is not clear either what you mean by this. And what about "descending into perpetual pessimism"? This sounds particularly interesting despite being sort of pessimistic. Care to explain?

[magz]

The problem with us people, we are very dependent to our government. We do not initiate ourselves to look for opportunity on our own to change our lives. Then if we suffered financially, we blame others specially the government for not doing their job but the truth is, we ourselves should be blame on what we are suffering right now. Because we cannot stand on our own. We are too lazy to think of an idea how we can survive and change our daily living. Government cannot help us if we cannot help ourselves.

[fiulpro]

Well I think the real flaw is that job opportunities are less and there are a lot of people who wanna grab that .. government can't just produce job there is a fix number of it.. in fact its not government's fault but of the people who are not keeping a check on this ever increasing population..

Its really hard to handle this big of a mess.. also we do need to be more creative and innovative in order to survive in this world...

Its just that not everyone can afford because of lack of education or lack of job opportunities thus we do need to solve it ourselves rather than seeking help from government.

[shezu007]

capaitilsem makes awesome pay disparity, yet that isn't really an awful thing. It is a deductively demonstrated the individuals who make $80,000+ every year are basically as substance with their lives as multimillionaires. The purposes behind this are numerous, however generally on the grounds that the rich work more hours... despite the fact that they have more, they invest much more energy working and along these lines have far less time to really appreciate the their rewards for all the hard work.

[Noore Najjar]

Yes. Karl marx done as much book Capital, Volume i demonstrates this imperfection Also lands on unavoidability of class war What's more transformation of the attempting class against the elites. The fundamental thought will be that capitalists don't go through the benefits (the capital), Yet instead re invest it.