Socialist Countries

1. 
   North Korea
   
2. Venezuela 
3. Cuba
4. China
5. India
6. Vietnam

NOTE:  I would argue that China is more of a Communist country than a Socialist country but it is listed as a Socialist country....

In each of these countries do their citizen have the FREEDOM that has been afforded to all citizens of the USA?

The answer is NO...

In each of the countries do their citizens enjoy:

• the best medical care
• the best educational programs
• the best recreational programs
• the best entertainment programs
• the best military protection
• the best religious freedoms
• the best economic opportunities
• the best quality of life
• the best housing available

According to Investopedia:
Capitalism and socialism are economic systems that countries use to manage their economic resources and regulate their means of production.

Capitalism is based on individual initiative and favors market mechanisms over government intervention, while socialism is based on government planning and limitations on private control of resources.

Socialism needs Capitalism in order to exist...  but, at some point-in-time, Capitalism is going to find that Socialism encourages unproductive employees...  While Amazon and Ebay and Google think that they have excellent employees, the services and extras provided by those companies will eventually wear thin and they will start balking at the amount of work that is facing them, especially when employees cannot really be fired...

There is no competition in Socialism and competition drives capitalism...

While China is considered to be Socialistic, it is still controlled by the COMMUNIST PARTY and even China is discovering that Capitalism helps their economy more than Socialism as they make a bid to replace the USA as the global leader militarily and economically.

Our Free Market Enterprise System

I got my MBA in 1981, but the basic concepts of Business have not changed since 1776 when we won our independence from Great Britain.  Businesses are formed to fill a need in society and the demands of the consumer whether those demands are actually realized or not.  A business person either makes or buys something to which they add value and then sell that item to the consumer at a higher cost that the costs that the business have spent.  The more products that can be produced the less is the price to the consumer...  on a theoretical basis because some business owners are greedy.

ACTUALLY...   GREED by the supplier and the consumer is the foundation of our Free Market Enterprise System...  and, without GREED there would be NO economic growth.  Without economic growth, people would not be receiving salary or wage increases and companies would not have the money to invest in New Product Development.

SO, Greed in a necessary EVIL...

The downside of our Free Market Enterprise System is that there will always be a WEALTH GAP between the owners of the company and the managers and between the managers and the supervisors and between the supervisors and the workers.  Not all of these jobs are financially equal nor should there be, otherwise, management would no longer be willing to take the RISKS and/or RESPONSIBILITIES that is associated with their positions.

Another downside of our Free Market Enterprise System are those companies that sell stock in their company as a way of generating capital without borrowing from a bank.  In return for the purchase of stock, companies pay a quarterly dividend to those stockholders.  OVER THE YEARS, many companies have decided to make business decisions that favor stockholders rather than benefiting the company or its employees...  especially since some CEO's lose their jobs if stockholders don't get the dividend that they are anticipating.

Another downside of our Free Market Enterprise System is that fact that ALL COMPANIES want to eliminate their competition so that they can put whatever price they want to on a product.  They do this by buying our or merging with the competition until there is no competition.  This results in creating a MONOPOLY and the government must step in and keep this from happening.  Examples of near MONOPOLY companies are:

1. GOOGLE
2. FACEBOOK
3. AMAZON
4. MICROSOFT
5. APPLE

A Pitfall of CAPITALISM and DEMOCRACY

Currently, the USA  (I say the USA because we also have Central America and South America that refer to themselves as Americans) has a Constitutional Form of Government referred to as a Democratic Republic which is basically a DEMOCRACY...  and, our economic system is based upon CAPITALISM or what some refer to as a Free-Market Enterprise System.

There are two fundamental problems associated with a DEMOCRACY and  Capitalism.  As far as a DEMOCRACY is concerned, here is the problem:

In a DEMOCRACY, not only does the public rule but the public is given freedom...  and, as the population grows this individual freedom can be collectively joined together and the majority can literally vote themselves OUT OF A DEMOCRACY...  and, according to the US CONSTITUTION, there is nothing that can be done to stop that.

As far as CAPITALISM is concerned, here is the problem:

CAPITALISM, by nature and quite possibly by definition, is operated under the concept of making a profit that is then shared with the Stockholders and used by the company for Expansion.  If this profit is shared with the employees, then there is less money for Stockholders and less money for Expansion.  The company also has the option of raising prices to the consumer but that would cause inflation putting the worker in a position of financially being no better off.

This WEALTH GAP between Upper Management and the Worker is the fundamental problem with all CAPITALISTIC types of economies. and as such will always cause the WORKERS to rebel and quite possibly revolt.

The only way to stop CAPITALISM is to END CAPITALISM...  and, the irony of that direction is that our country NEEDS CAPITALISM in order to sustain its economy.  Any other economic system would result in a gradual decline of the US Economy...  because CAPITALISM is the ONLY ECONOMIC SYSTEM that allows and provides for ECONOMIC GROWTH.

SO...  here is another question with which you must decide its importance:  

DO YOU WANT TO LIVE IN AN ECONOMIC SYSTEM 

WHERE THERE IS NO ECONOMIC GROWTH?

How Much Socialism Can You Tolerate?

Example of Capitalism

EXAMPLES OF SOCIALISM IN THE USA

Guaranteed public education

Public transportation
Fire departments
Police departments
Public libraries
Every branch of the US military
Roads & highways

Example of Capitalism

Social Security
Medicare/medicaid
Public, not private prisons & jails
Public hospitals
The Veterans Affairs Administration
Public universities
Public parks
Public toilets
Public drinking fountains
Public parking

Example of Capitalism

Public everything

WHO PAYS FOR SOCIALISM IN AMERICA?

The tax payer

Capitalism

Borrowed money from China

The question is not do we want Socialism because we already have Socialism but how much Socialism do we want???

Example of Capitalism

AND,

How much Socialism can we afford???

Today...  we are debating forcing the WEALTHY and CORPORATIONS to pay for Socialism and on the surface that seem perfectly fine and normal but if we were to do that, there would be hidden costs associated with the WEALTHY and CORPORATION...

For Example:

Example of Capitalism

1. Many wealthy people will shelter more and more of their money away from taxes
2. Passing laws to keep the wealthy from sheltering money away from taxes could be unconstitutional.
3. Stock Holders investing in Corporations want dividends, increased taxes would reduce dividends
4. Corporation would find money for dividends by:
1. increasing prices
2. laying off workers
3. cutting back in R&D
4. not investing in expansion
5. Long term effects of # 1-4 would be LESS TAXES, MORE MONEY BORROWED

NOTE:  Unfortunately, this is the way CAPITALISM works and CAPITALISM is necessary to pay for our current levels of SOCIALISM

Example of Capitalism

The BIGGEST PROBLEM FACING SOCIALISM is GREED...

and, the Socialists do not yet realize that... 

For Example:

In a SOCIALISTIC country, individual success is no longer important because the government will give you what you want or need regardless of whether or not you work.  In this type of society, no one is greedy, except for maybe the leaders of the Socialistic Society wanting to make sure they keep their power.

SOCIALISTS in AMERICA want, as one of their demands, FREE COLLEGE EDUCATION...  what does someone do with a College Degree, earn more or less money because of their education?  They typically earn more money, although more money is made in the Northern States than in the Southern States because it costs less to live in the South.

BUT, earning more money because of one's FREE EDUCATION is an example of GREED which is CAPITALISM not SOCIALISM...  Free Education Greed will, be default, kill SOCIALISM...