― Winston Churchill
― Milton Friedman
"CAN capitalism survive? No. But ... what counts in any attempt at social prognosis is not the Yes or No that sums up the facts and arguments which lead up to it but those facts and arguments themselves."It would appear that America and the world are nearing the point at which we may soon discover the truth or falsity of Schumpeter's WWII vintage prophesy that CAPITALISM is unsustainable and that, with its final demise, SOCIALISM [ala democracy] will be left standing alone as the only way forward for individuals, humanity and the planet as a whole.
"CAN socialism work? Of course it can."
Capitalism, Socialism and Democracy, Joseph Schumpeter, 1942
Come and help us lay out what Schumpeter calls the "facts and arguments" for and against capitalism and socialism by asking and discussing these 5 questions !1. What is capitalism? ... this definition is a start ... but let's add to it.
"[O]ur civilization depends, not only for its origin but also for its preservation, on what can be precisely described only as the extended order of human cooperation [which] constitutes an information gathering process, able to call up, and put to use, widely dispersed information that no central planning agency, let alone any individual, could know as a whole, possess or control ... an order more commonly, if somewhat misleading, known as capitalism.”
"The Fatal Conceit: The Errors of Socialism", FA Hayek, 1988
2. Many have predicted the demise of capitalism before ... and after the revolutions of 1989 it looked like capitalism had finally triumphed over all other forms of sociological organization. Is that prognosis still valid? If not, what changed?3. What is socialism? ... here's a possible start ... but let's flesh it out.
Socialism is an economic system where the primary criterion for production is collective use-value [not individual profit] and where production is coordinated through centralized economic planning while the distribution of products is made to each according to some socially weighted blend of his contribution and/or need.
Socialist Mode of Production, Wikipedia
4. If capitalism does fall, can socialism "work" ... or is its historical record of apparent failure so long and consistent as to preclude it from being a viable long term solution?5. What [if anything] do capitalism and socialism have in common ... and where do they fundamentally differ ... and can this knowledge help us understand their respective strengths and weaknesses in a way that might allows us to rely on them both [albeit in different areas] so that neither one is expected to bear the full burden of sociological regulation alone?
When, Where and a Flyer
Tuesday, August 20, 7:00 to 8:45 pm at Friends University Rooms 101-102 Marriage and Family Therapy Building [SE corner of campus]. Click FLYER above and [if we have it] you will get a flyer which you can print and post appropriately to alert others about the upcoming meeting.The Evening's Format: RAT [rough and tumble]
Our audience will be our panel for the evening ... and we hope everyone comes ready to share a thought that helps us dig into these topics.Mike Witherspoon will moderate by introducing each of the 5 questions and then allowing time for us to probe some answers. And while he will attempt to preserve both motion and civility, he will give us wide latitude to see where we end up for the evening. It can be quite exciting and enlightening to see what we feel individually and collectively is important. It will be fun for all. Why not come ... and bring a friend !!
Please try to send us an email in advance at NewSymposium@gmail.com if you plan on coming so we can be roughly sure to have enough chairs ready. We look forward to a stimulating evening of total participation.
Epilogue: Who Stole the People's Money?... 'Twas him.
- Commonwealth socialism is stable because it performs vital political and economic functions [with both privileges and responsibilities] in areas where the commonwealth activities and resources in question cannot be easily or justly allocated, exchanged and managed in a decentralized private property paradigm with individual free choice and fair competition. The challenge is accurately and legitimately identifying the boundaries of our commonwealth which may change as our sociological environment changes.
- Partisan socialism is unstable because it goes beyond the commonwealth to divide us into groups then tempts EVERY GROUP to use its political power to secure an economic advantage at the expense of those outside the group ... but there are hidden "strings attached" which can be harmful even for those in the favored special-interest group.
- Non-crony capitalism is stable because it uses decentralized information, private property, sound money, price discovery [via fair competition and free exchange] and the promise of profit to impersonally incentivize individuals to bring their CAPITAL and LABOR together to manage and allocate non-commonwealth activities and resources on a massive scale in a way which, although almost always unequal in resulting income and wealth, can still be both generally equitable and broadly desirable for every individual whether they participate as CAPITAL or LABOR.
- Crony capitalism is unstable because it divides us by allowing limited-liability CAPITAL and BANKING elites to use political power to secure economic advantage at the expense of LABOR [or vice versa] through the institution of perverted monetary, fiscal and other public policies.
- Political corruption is prevalent and destructive ... and it destabilizes and adulterates both commonwealth socialism and non-crony capitalism by allowing political power to be used [both inside and outside the commonwealth] to personally enrich the corrupt politician and his/her partisan constituents at public expense ... always leading to the same painful question and evasive finger pointing answer ... "Who stole the people's money?".
Thanks to EVERY SYMPOSIAST for the wonderful [if warm] evening ... the dialogue could not have happened the magical way it did without YOU. We hope you will come back soon and often to join us at the New Symposium Society.
>>> Appetizers anyone? >>>
[send us some "thought-starters" of your own so we can add them here]Books & Articles
Socialism Sucks: Two Economists Drink Their Way Through the Unfree World, by Robert Lawson and Benjamin Powell, 2019
Capitalism must work for Labor, FROTH blog, August 2019
Videos
"Why Democratic Socialism Is Gaining Popularity In The United States", #cnbc
"The Real Adam Smith: Morality and Markets", Free to Choose Network, 2016
Hour One, Morality & Markets, explores Smith’s life and role in the Scottish Enlightenment, his thoughts on empathy and how we distinguish right from wrong. French wine, Scottish whiskey, and freshly-baked scones all illustrate Smith’s economic principles. True wealth is defined. We discover Smith’s thoughts on the government’s role in markets, his distaste for monopolies/crony capitalism in the form of the East India Company, and his thoughts on the American colonies.Quotes
“I believe in competition! But we need to make capitalism work for your family and we need to make democracy work for your family. A rising stock market is not helpful to the half of all America who own not one single share of stock. Rising productivity that doesn’t translate into rising wages for the people who actually do the work is not building a better future for them.”—Elizabeth Warren
“You can't just continue capitalist growth for the sake of capitalist growth in a world in which we are struggling with climate change and all kinds of environmental problems. All right? You don't necessarily need a choice of 23 underarm spray deodorants or of 18 different pairs of sneakers when children are hungry in this country.”—Bernie Sanders
Alternative definitions:
"A society is called capitalist if it entrusts its economic process to the guidance of the private businessman. This may be said to imply,
- first, private ownership of nonpersonal means of production, such as land, mines, industrial plant and equipment; and,
- second, production for private account, i.e., production by private initiative for private profit.
- But, third, the institution of bank credit is so essential to the functioning of the capitalist system that, though not strictly implied in the definition, it should be added to the other two criteria."
