November 28, 2014
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Which is best of economic/political systems?

To the Editor:

Today I offer the readers a quiz. Try and determine which is the best economic/political system of the ones listed. 

Under the old 19th century capitalist model, a man owns a company that has five workers. The profits he receives from the company are his. He uses these profits to expand the business. After a few decades, he has 40 workers and has become very wealthy. His workers are slightly underpaid but basically happy, until of course they lose their job. And there is no safety net for them. There is a tariff to prevent cheaper imports though.

Under the 20th century capitalist/socialist model, a man owns a company that has five workers. The profits are his, but with more profit, comes more taxes. Eventually he grows wealthy. His company expands to hire 30 workers. Not as many as he could before, but his workers are happy, and there is a safety net if they lose their job. No tariff, but the government still does not like cheap imports.

Under the 20th century communist model, the man with the company has his company taken away. He can still manage it, but all the profits are taken by the state. He is forced to hire more people than he needs. But there is work for everyone, and a large safety net for everyone. Everyone is happy except the rich and the upper middle class, who now do not want to do anything because they are not fairly compensated. Eventually there is no real progress, just a status quo.

Under the 20th century fascist model, a man has a company. He is forced to sell his products to the state at a cheap price. The state in turn sells these products at a higher price (sometimes forcing people to buy at a high price). The state makes money and in turn uses this money to fund government and help the poor and middle class. The upper middle class and rich are still allowed to be rich – just not as rich. And everyone has some sort of job that wants one. The government wants lots of factories – in the man's own country. 

Under the 21st century venture capitalist model, a man has a company. He is convinced by his financial advisers to sell his factory and with the profits buy a much larger factory in China, Mexico or India. Eventually because of the cheap labor, and cheap costs, he is motivated to buy more factories overseas. In fact, encouraged by his own government to do so. All the money that would have gone to employing 40 to 50 people in this country, now goes to employing 400 people in a third world country. His own country has 40 to 50 less workers who now are dependent on government for help. To help these people, it borrows from other countries.

You tell me which economic/political system is the best for the long-term interests of the United States. I think you may have guessed by now it is NOT the 21st century venture capitalist model. 

Kevin Vealey

 

Warwick


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