Is Capitalism Just?

Socialism Is Not Just

Socialism is an economic system controlled by the government where compensation and resources for all individuals are divided in theory based on an egalitarian method. Socialists believe in the greater good of mankind. One should sacrifice himself for the benefit of others. This belief is an idealistic point of view on how the world should be, but there are still a lot of problems with the Socialist theory.

Socialism is not a concrete philosophy. Within the socialist movement there are different sub-movements and conflicts. These different movements exist because there are certain problems with the theory of socialism. Socialists believe that capitalism creates an unequal balance of power and wealth. To equalize wealth, the socialists like to have an egalitarian method of compensation.

If the government were to equalize wealth, then they would have to state the value of every product and service. Socialism cannot work simply because of the fact that the government would not be able to be a specialist in every field of the market. In capitalism all prices are regulated by the individuals themselves. The people themselves are the only ones that are able to regulate all prices.

In a socialist country the amount of bureaucracy needed to regulate all prices would be impossible to achieve. The more rules necessary to regulate prices, the more expensive products will be. In capitalism this would be countered by another company who would sell the products at a lower price. This stimulates companies to be more efficient. But in Socialism all companies would have to sell at the same price. Many people complain that in capitalism there could be monopolies but in a socialist country the biggest monopoly would be in hands of the government.

Social Political Justice – Is capitalism a just social system?

Equality is one of the basic pillars of justice and the foundation of our society. Shielded by the law, any individual is treated the same way and therefore has the right to keep what he has earned. According to this “what you produce is what you get” -credo a third party has no just right to claim your property. In this capitalistic environment people are perfectly independent, and any other state or model of government has not yet proven to be more socially just.

The antagonists of capitalism often come up with with examples, where economic inequality is illustrated. Why does a doctor earn less than a sports celebrity? How can this be just? Those assumptions might be traceable because of ethical reasons, but it is certainly just in a capitalistic society, where people deserve to get the proportional revenue of their efforts.  On fight night in Las Vegas for example, a boxer attracts a huge crowd, that spends its money on hotels, food, transportation, merchandising, and T.V. channels broadcasting the fight to many households. By entering the ring, this celebrity is triggering many economical consequences, which can be titled as profits for the society. This effort is more highly rated than the “output” of a doctor’s work, even though it is not less important. Since a capitalistic engine is run by the principle of effiency, the doctor cannot expect the same gratification as the celebrity. Any interference or re-allocation by the government would not be just.

A final word, you can summarize the whole topic in one quote by Ralph Waldo Emerson, an American philosopher:

“Doing well is the result of doing good. That’s what capitalism is all about.”

In summary, is capitalism just? It is absolutely just. It is the only system of fairness for the individual. It gives choices and opportunities for all. It encourages free enterprize and benefits all those within it. It is the only system that protects individual rights. It is capitalism.

Image via Wikipedia

 References

 Cyprus, S. (2009):  What is capitalism?[www document] http://www.wisegeek.com/what-is-capitalism.htm

Rand, A. Atlas Shrugged.[www document] http://www.sparknotes.com/lit/atlasshrugged/quotes.html#explanation4

Session, M.(1996): Why Capitalism Isn’t A Dirty Word. [www document] http://www.nationalcenter.org/capit.html

Younkins, E.W. (2007): Capitalism: The Only Moral Social System. [www document] http://www.quebecoislibre.org/07/070624-5.htm

 Everything2. (2001): Freedom. [www document] http://www.everything2.com/title/freedom

 Miller, F. (1990): Foundations Study Guide: Political Philosophy. [www document] http://www.objectivistcenter.org/showcontent.aspx?ct=51&h=44

 Dictionary.com. (2009): Statism. [www document] http://dictionary.reference.com/browse/statism

 Famguardian. (2006): Capitalism: Frequently Asked Questions.[www document] http://famguardian.org/Subjects/Politics/Articles/Capitalism/capit-2.htm

 Capitalism. (2004): Government’s job is to protect (individual) rights. [www.document] http://www.capitalism.org/faq/government.htm

 Draper, H. The two souls of Socialism. [www document]http://www.anu.edu.au/polsci/marx/contemp/pamsetc/twosouls/twosouls.htm