Capitalismvsocialism

So a few days ago I saw someone talk about a cashier example that will quickly learn that the money going into the company is far more than his or her wage.

How do you calculate the full value of this labour?

Cashier 1: sits idle for 90% of the day and scans items that bring in 2500 euros in that day.

Cashier 2 in a different store: sits idle 20% of the day and scans items that bring in 2500 euros in that day.

How do you calculate the full value of that labour.

In the 21st century, capitalism has generally outperformed communism economically.

Capitalism thrives on innovation and economic growth. The competitive nature of free markets drives businesses to constantly innovate and improve, leading to increased productivity and technological advancements. This dynamic environment fosters a culture of creativity and progress, which is essential for economic development.

Private ownership in capitalist economies provides a strong incentive for individuals and businesses to succeed. When people own the means of production, then they are motivated to work harder, innovate more, and produce better products. This drive for profit not only benefits the owners but also contributes to overall economic prosperity. Causes for more tax revenue.

Another good thing about capitalism is its reliance on market mechanisms to determine prices and production levels. Adam Smith's "invisible hand" theory illustrates how self-interest and competition can lead to efficient resource allocation. This system ensures that goods and services are produced and priced according to supply and demand, which helps maintain a balanced economy.

Capitalist economies are also more integrated into the global economic system. They benefit from international trade, investment, and technological exchange, which further boosts their economic success and resilience. This global integration allows capitalist countries to access larger markets and resources, fostering even greater growth.

Capitalism has shown remarkable adaptability to changing economic conditions and technological advancements. The flexibility of capitalist systems allows for quick responses to market signals and consumer demands, enabling economies to evolve and stay competitive.

Countries with predominantly capitalist economies have experienced significant economic growth and development. These economies have been able to provide a high standard of living for their citizens.

Communist economies have faced challenges such as inefficiency, lack of innovation, and limited economic growth. Central planning and state control often lead to resource misallocation and a lack of incentives for innovation and productivity. This can result in stagnation and a lower standard of living for citizens.

When there's a high median net wealth, such as in Belgium, Luxembourg, Iceland and Australia. Then capitalism allows for decentralisation. The means of production will be owned by a lot of people instead of just a few.

People can choose which companies they want to support by buying or selling their stocks. Such as Elon musk's Tesla dropping in value due to his shenanigans.

A problem with worker cooperatives and employee stock option plan is that the portfolio of the employee will not be diversified. If their company does badly, then their wealth tanks quite a lot.

It's better that they get quite some money. Have a high median net wealth and thus can diversify their assets. Lower their risk.

The best part about capitalism is that there's no monopoly of labour. In various types of communism, such as in Cuba, the government is the sole employer. Or at least was like this in the past before people wanted more privatisation.

For example doctors would be paid well in Cuba, but nothing compared to other Latin American countries where they could be self employed or employed by various competing hospitals.

Competition is important. Diversification is important. Those are things that capitalism provides.