Thursday, December 01, 2005


Sagers approvingly suggests a bok caled anti-capitalism

The problems with alternatives to capitalism (after a quick browse)are slightly different to the usual ones.
1) it is no that they dont exist there are indeed alternatives and some of them are more in the NAZI vein where one does not alow interest on capital and encourages profit from work. Or hte communist vein where the state controls everything or any of a number of other systems.

2) it is also Not that they are not better (in terms of a snapshot in time). IF we had a system that rewards work over capital one swould expect it to be a much better meritocracy fairier and so forth.

BUT the big problem is that
1) they are unstable
If you dont reward capital then your country will probably sufer capital flight, If you have comunism you will probably encourage laziness etc In fact most other systems leak terribly when put next to capitalism in such a way as to be likely to fall apart.
the solution to this is very strong central government (to hold together a unstable reigeme) but most people would soon come to question if that answer is really "better".

2) that instability is reflected in unintended concequences.
There is a tendancy for capitalists to fill in the gaps that you leave with any other policy. Furthermore one must take steps one at a time as opposed to suddenly teleporting to the top. So you cant have a system that will result in you being crushed economically by the competing system - since then you will enver get off the ground. So a country that shares all its money with all the countries poorer than itself might be a good country but will soon be the poorest and weakest country in the world.

You cant start on the assumption that everyone will become entirely anti capitalist - it is just too unlikely as is any alternative to capitalism except maybe fascism.


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