Do we know what serves us better, socialism or capitalism? The answer really is everywhere but many are nearly be blind to it.
Capitalism just is. Think, did City Hall just spring up magically and then decide to have a sawmill? No, but a belief had to happen without any real economic planning. It is all born of a desire to watch out for everyone.
But if we examine socialism, what do we see when the government has seized control of the economy?
In China, where for over 35 years, it had been under a totalitarian communist regime, the economy had fluttered and many died until a shift happened to allow a market reform where capitalism was allowed to flourish.
Today, times have changed, making it possible for China to surpass iPhone sales in the U.S. in 2015. This changed China from the image of a poor peasant farmer to the Chinese being one of the greater consumers.
In Russia, which was similar to China, millions starved under their brutal communist regime. Fortunately, since the Iron Curtain fell in 1990, private enterprises have been allowed in, getting rid of the 4-hour bread lines, making life a whole lot easier.
In North Korea, millions starved. It’s hard to believe that in 1953 after the two Korea’s hostilities subsided, they were on average equally wealthy, but today South Koreans make 27 times more money than their communist northern neighbor.
In Cuba, 1985, Russia withdrew support after 26 years of subsidies to Cuba. This withdrawal caused Cuba to spiral in what was called the Special Period. In this period food shortages where normal and eating domestic cats was a way to survive. This time even stranger where the government actually said to its citizens that weight loss was actually good for their health in this food crisis.
So what started happening to fix this? Market reforms did, in other words, capitalism happened. This worked so well the government got scared and went back to more socialist ideals. This meant that 600,000 self-employed were allowed to carry on but no new ones are allowed to spring up. It’s hard when the government mistrusts them and the poor Cubans are jealous of them. It sounds like the government fights wealth and not poverty.
How about Venezuela, whose growth with having the largest oil reserve in the world, shut down by an egalitarian movement which seized control and drove this once flourishing oil business into the ground, making them now the starving and dirt poor net importer of oil today?
Then you have what’s called The Nordic Model?
What about it? According to The Foundation for Economic Education: “while it is true that the Scandinavian countries provide things like a generous social safety net and universal healthcare, an extensive welfare state is not the same thing as socialism. What (people) confuse, is that this form of socialism is actually a social democracy – a system in which the government aims to promote the public welfare through heavy taxation and spending, within the framework of a capitalist economy. This is what the Scandinavians practice.”
So with this information, who really feeds the poor?
As humans, naturally, we want to help the poor and the nations who provide foreign aid are the who’s who on the capitalist list, while socialists are on the recipient list.
Sonia Rina Davies is a passionate entrepreneur, speaker, author, and personal development coach. She is an outspoken advocate of the free market economy and has helped countless clients identify their core values, envision and realize goals that resonate with those values. She oversees several businesses both online and offline.