The MSU Underground » socialism http://www.msu-underground.com The Unofficial Student Publication of Missouri State University Tue, 20 Jul 2010 10:13:48 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 2009 smdaegan@gmail.com (The MSU Underground) smdaegan@gmail.com (The MSU Underground) posts 1440 http://www.msu-underground.com/wp-content/plugins/podpress/images/powered_by_podpress.jpg The MSU Underground » socialism http://www.msu-underground.com 144 144 Created by The Underground, The Unofficial Student Publication of Missouri State University The MSU Underground The MSU Underground smdaegan@gmail.com no no Capitalism does not work in practice http://www.msu-underground.com/archives/871 http://www.msu-underground.com/archives/871#comments Fri, 16 Oct 2009 00:06:08 +0000 Mike Courson http://www.msu-underground.com/?p=871 by Mike Courson

Humans ruin everything. Today at work, I chatted with a not-uneducated coworker about some of the major theories of society. She could not believe some prominent media figure suggest capitalism does not work.

She is a conservative, and that is fine. Though I do not agree with most of her views, one can generally find a base principle or other similar characteristic in opposing viewpoints. Though she may not have agreed (she may have), she at least remained civil when I suggested the capitalism is just one idea that does not work because the human race is involved.

Capitalism is a good idea. Let the people run the show, and the free market will regulate itself. If a company sells worthless goods, people will shop elsewhere. If a store has overpriced items, consumers will go to another store. These concepts and others will lead to reliable and cheap products. These ideas work in a fair society.

Unfortunately, humans are anything but fair. Let’s say a company does sell worthless goods. Maybe they are toxic. Maybe they fall apart. What if, due to volume of sales and cheap manufacturing, this company has more money than the competition to promote its products. What if it has the power to run smaller businesses out of town?

The argument may be that it’s not possible for a company like this to thrive. It would not be if things were fair, but again, they are not. Take a woman shopping for clothes. The nice clothes, made by workers who are paid and treated properly, and whose fabrics and threads are of high quality, naturally cost a lot of money. This woman, unfortunately, works for a company that does not pay her well, even though she works very hard. On top of that, she has been sick lately and has to pay high medical bills (that capitalism did not do a very good job of regulating). Though she is a worker, and though she wants the nicer clothes, her situation is not dictated by what she wants but rather what she can afford. Through really no choice of her own, she perpetuates the cycle of abused employees and cheap products. Take this woman times hundreds of millions of people on the planet and capitalism clearly begins to benefit a certain group.

That is just one example of how a less-than-ideal business can thrive in a free market. The market is not based on what is best for consumers, but what is best for business. Therein lies the flaw. Businesses, run by humans, can corrupt the system by controlling the variables that dictate behavior. If the above woman’s employer paid her what she truly earned, she could afford more expensive clothes, and the store exploiting cheap labor and products would have to up its ante to compete. Instead, the cheap store usually wins out with sheer volume merely because it can run the other shops out of business.

True capitalism assumes there are standards by which businesses work. Perhaps in the beginning, this was the case. In 2009, that is no longer the case. Mass media makes possible countless ways of advertising. Again, the company with the most money, which is often not the best company for the people, has the most ability to promote itself.

Fortunately, our system is not true capitalism. We have regulation. Though we have become a fine print society, at least companies are forced to tell the truth in some twisted form. Unfortunately, we do not have enough regulation. This is why companies can continue to exploit workers and consumers.

That is the other part of capitalism: the consumer. Why feel sorry for the consumer? It is up to him/her to control the market. The people working for companies that do not pay well must deserve the substandard pay. To the contrary, those earning high salaries, through school, hard work, or other ways, earn their pay. It is the common psychological principle that good traits are credited internally (I work hard, therefore I make a lot of money), and bad traits are external (He does not make a lot of money, therefore he must not work hard).

When this mindset is added to the other capitalistic equations, you end up with a society that does not care for one another. Instead of improving the plights of others, maybe with higher pay, more nutritious foods, etc., the lesser groups are viewed as inferior. The become tools to further individual growth. This explains how so few in a society can grow so wealthy while the masses get progressively poorer.

When all is said and done, a capitalistic society is supposed to create wealth for some. If fairness were incorporated completely, we would not see the levels of wealth and poverty we see today. The salaries of company owners would be limited because of fair pay to employees who run the company. But, somehow, we do not see that capitalism is not a fair idea, and we have allowed many dishonest companies and people to take advantage of others, resulting in the growing disparity between the rich and the poor.

Humans ruin capitalism for two reasons: greed and ignorance. One group uses whatever tools it can to gain more. The other group does not realize the power of itself and begins to listen to the viewpoints that ultimately benefit the class in power. How else could a worker with two jobs vote for candidates that vote against a wage increase?

What is the answer? Time has all but proven that western ideas do not work. Communism is another great idea. Individuals work for a collective good. Like other systems, this always results in a certain power structure. Power corrupts, and soon you have a class of people taking advantage of another class.

Religion is but another good idea gone wrong at the hands of humans. Instead of being used to increase the quality of life, certain humans use it as justification to hurt others. Religion, money, and nationality are the three main causes of war in history.

It seems there is no answer, but there is: regulation. Call it socialism, call it whatever you want. With an independent body to govern greed and force honesty, a society can create a natural series of checks and balances. If the body is failing, it can be replaced through election. Sound familiar? Vaguely, but it is not the American system, which is controlled not by everyday people, but by special interest.

Again, call it socialism, but there is another name for a truly independent government that looks out for all and not just a few: fair.

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Blame conservatives! http://www.msu-underground.com/archives/421 http://www.msu-underground.com/archives/421#comments Mon, 06 Apr 2009 20:25:58 +0000 Zach http://www.msu-underground.com/?p=421

Brian Michaelson

Contributor

Some days you just can’t be disgusted enough. Other days, you just shake your head and realize that Republicans are either too smart for their own good—or too dense. If history will be a lesson, you’d think after the first two economic debacles they created, they’d learn their lessons and not repeat it. But then again, Americans can be, well, even more dense.

The GOP has been squawking at every level about “socialism” and “big government” since the Obama Administration took office. Funny. If we look at the trend over the last 8 months, the former Bush Administration took more “socialistic liberties” with companies like AIG, Goldman-Sachs, CitiBank, J.P. Morgan-Chase, and a few other mega-corporations who are now reaping the greedy benefits of taxpayer-funded welfare. Ironically, after Obama decided to do the right thing and go after AIG’s “contractually obligated bonuses”, it became apparent that paying off these CEOs who drove their companies into the ground at taxpayer expense was “necessary”. Who believes this crap?

What parts of history don’t people remember when this stuff keeps coming around? If anyone wants a classic case of conservative economic principles gone wrong, I’ll provide you with three.

First off, the Savings & Loan collapse of the 1980s. Anyone recall the Keating Five? Charles Keating, among others (including GOP head-man John McCain), essentially collapsed the largest Saving & Loan business on the continent at their own personal gain, all because of looser regulation, and less oversight from our taxpayer-guarding friends at the SEC and FTC. Keating took the rap and went to prison for it, but had justice truly been done, McCain never would’ve ran for President. Ever. What became of all this? Even less regulation (does that make sense at all?).

Second, pre-FDR era. Need I really say more? Of course, most people don’t realize that FDR cleaned up the massive pile of dung left by his Republican predecessors Calvin Coolidge and Herbert Hoover. Hoover alone drove up inflation and unemployment so high, that we’re likely to never see levels that bad ever again. Al because J.P. Morgan and his Rockefeller buddies wanted less government insight into their monopolistic practices. Roosevelt, a Democrat, invested government money into federally sponsored jobs (thank FDR for the Golden Gate Bridge, the Hoover Dam, and thousands of other WPA works), nationalized defunct banks and loan business (literally hundreds of them), tightened regulation on almost everything, and eventually never lived to see the fruits of his administration’s labors.

Third, and best of all, the post-9/11 Bush Administration’s removal of virtually every bank regulation in existence. What Clinton had attempted to shore up in the 90’s (back when we actually had a balanced budget and a robust economy not riding on a weak dollar), Bush essentially removed them all, at the behest of his buds in businesses like Enron (Ken Lay anyone?). Lo and behold, an artificially inflated economy riding on the coattails of bad economics has crashed so hard, we couldn’t have caught it if we wanted to. Simply because the fix to the problem of a slowing economy was—you guessed it—less regulation.

The lesson behind all this? Conservative economics and politics simply don’t work. They never have, and never will. Conservatives want unchecked capitalism, but if we can all learn from history, unchecked capitalism simply leads to unchecked greed.

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