The 'ism' Does Not Matter
There is no doubt that socialism as an economic model was an abject
failure in India and much of the rest of the world. However, there were
several social lessons of value that socialism taught which are missing
in capitalism.
Runaway capitalism (the cause for which I believe was the hijacking of the system by vested interests) in past few decades in the West has resulted in social inequality and environmental imbalances. Both are issues that can not be solved easily. Let us not discredit the fundamental principles of either Capitalism or Socialism just because there were failures in implementation.
Economics expects the most rational decision in every situation (prisoners' dilemma is an example). In my view, Economics deals with the rational individual and tries to bring about change by external inducements (be they carrots or be they sticks) whereas Socialism tries to bring about change in the individual by appealing to notions such as serving the greater good.
Prisoners' Dilemma says that the attained state of equilibrium (the so called rational decision) is not likely to be the ideal one because there is a lack of trust. Now the question is whether trust can be developed by inculcating the right lessons from an early age. I do not know. But I think it is an experiment worth trying. It is not the kind of change that will happen overnight as certain anarchists demand. The problem is, there are not enough people who understand and appreciate the better aspects of both Capitalism and Socialism.
Extreme positions unfortunately seem to be more in vogue than balanced ones. People unfortunately still are not interested in seeing from different points of view. Economics is a tool. Let us not vilify it or deify it. Let us learn to use it effective for I strongly believe it is one of the best tools available to understand how society works. Capitalism has made more and better use of Economics than have Socialist societies. There is therefore a mistrust of Economics among people who lean towards socialism. I hope people will set aside biases and make a greater effort to learn more about Economics before reaching a conclusion. Economics is not just about measuring GDPs.
Runaway capitalism (the cause for which I believe was the hijacking of the system by vested interests) in past few decades in the West has resulted in social inequality and environmental imbalances. Both are issues that can not be solved easily. Let us not discredit the fundamental principles of either Capitalism or Socialism just because there were failures in implementation.
Economics expects the most rational decision in every situation (prisoners' dilemma is an example). In my view, Economics deals with the rational individual and tries to bring about change by external inducements (be they carrots or be they sticks) whereas Socialism tries to bring about change in the individual by appealing to notions such as serving the greater good.
Prisoners' Dilemma says that the attained state of equilibrium (the so called rational decision) is not likely to be the ideal one because there is a lack of trust. Now the question is whether trust can be developed by inculcating the right lessons from an early age. I do not know. But I think it is an experiment worth trying. It is not the kind of change that will happen overnight as certain anarchists demand. The problem is, there are not enough people who understand and appreciate the better aspects of both Capitalism and Socialism.
Extreme positions unfortunately seem to be more in vogue than balanced ones. People unfortunately still are not interested in seeing from different points of view. Economics is a tool. Let us not vilify it or deify it. Let us learn to use it effective for I strongly believe it is one of the best tools available to understand how society works. Capitalism has made more and better use of Economics than have Socialist societies. There is therefore a mistrust of Economics among people who lean towards socialism. I hope people will set aside biases and make a greater effort to learn more about Economics before reaching a conclusion. Economics is not just about measuring GDPs.
posted by Anon @ 1:00 AM
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