Socialism, capitalism, and demand elasticity

Evidently in 2009 I found socialism superior to capitalism. I have since changed my opinions on the topic. One change is my finding that the more elasticity exists in a particular aspect of the economy, the better suited that segment is to low government regulation, and vice versa. The shampoo market in 2020’s United States is relatively elastic. If companies make shampoo too expensive, the demand curve will decrease accordingly. People may begin making their own shampoo from cheaper ingredients. On the contrary, in less elastic markets – markets where demand remains consistent even when cost increases, such as healthcare and incarceration, greater benefit results from more government regulation. (Dec. 28, 2020)

Mr. Boyer

World Cultures

Socialism > Capitalism

            Socialism is stronger than capitalism because there is more economic security provided for all of the people living in that society.  Money is taken from the rich and given to the poor in an early socialistic society.  This evens things out a bit, creating a full, rich middle class.  However, under full, blossoming socialism, everyone is provided with what they need, effectively for free.  With a strong, laboring mindset in everyone’s head, their volunteer work would fuel this beautiful system.  Everyone volunteers, everyone receives everything they need, clothes, housing, food, electricity, etc.  The rich still have money, and now the poor have it as well.  The entire society becomes middle class.

            People like security, socialism (in its economic security) is like jumping off of a building when you know you’ll hit the trampoline and bounce back to safety.  Capitalism is jumping off the building, and not knowing whether or not you’ll have a safe landing.  The government provides a strong trampoline socialists can rely on, a strong wall to lean back on whenever someone begins to fall back.  Although socialists may not lean as far forward as some capitalists (a forward lean represents prosperity, while the backwards fall represents loss).  Socialists will never lean backwards as far as some capitalists.  The blanket of economic security laid over the entire nation of socialists keeps everyone lukewarm, everyone happily in the middle class.  No one gets frostbite in socialism. 

            “It is fashionable among college professors, journalists, and politicians these days to sneer at the free-enterprise system. They tell us that capitalism is base, callous, exploitative, dehumanizing, alienating, and ultimately enslaving.”  (Thompson).  The bulk of intellectuals today sneer at capitalism and hold socialism in high regards.  Socialism creates the perfect society, where everything that an individual needs is provided for them at no cost.  Where everyone works for everyone, everyone owns everything.  It’s the perfect society of the future people want now.

            In a perfect world, capitalism and socialism would yield nearly the same results, however, they provide different means towards obtaining those results. 

            “I was given an assignment by a teacher in high school to write a paper on whether capitalism or communism would be better in "a perfect world." On first glance, communism seems to be the obvious choice, but if it were a perfect world, then not only would people work hard to support their families and progress individually, but even capitalists would be willing to donate to charities, etc. I believe that in a perfect world, a very similar outcome would occur in either communism or capitalism.” (“Socialism vs. Capitalism”)

I believe that as illustrated in Thomas More’s “Utopia”, socialism (which can lead a society into communism) is the perfect form of government if run properly.  Everyone has everything they need, everyone can participate in any piece of work they wish, furthering the economically secure society by having workers that enjoy what they do.  Socialism must not be tainted by totalitarianism. 

            “Capitalism is not natural.  For most of human beings’ time on earth, people lived in small, peaceful communities where cooperation and mutual reliance were the basis for survival.” (Chretien)  This is how people started out living.  How nomads live, designated people gather food, others build, etc. everyone is supplied through everyone else’s needs, while they themselves are working to provide for the common good before the private good. Capitalism tends to put profit above people.  Socialism puts the people above profit.  Instead of working for profit, you are working for the common good of the people.

            The economic security provided by socialism relieves stress from the people.  Everything is provided for you and so all you need to do is a little volunteer work and have some fun with your friends and family.  Less stress makes a happier people, a happier group of people is less likely to rebel.  With this lack of rebellion, the government has less to worry about as well, it relieves them of stress, making them happier as well.  Also, with less time wasted with worrying, more time is spent bettering the country.

            In conclusion, socialism creates a stronger society by providing economic security on an unrivaled scale.  Capitalism pales in comparison to socialism due to the stress laid upon the people, the lack of economic security.  What will happen to me if this plan fails?  The capitalists wonder, while the economically secure socialists sit back in relaxation, knowing that if their plan fails, the government is there to support them when they fall.