Sunday, August 19, 2012

Capitalism doesn't work

Libertarians love competition and hate government regulation. But competition leads to cheating. For example, people will put lettuce in a trailer that last carried hazardous waste. So, to make capitalism work, we make rules. But cheaters are creative. The rules made to help capitalism begin to impede.

If a group of people were stranded on a island, would people cooperate and work together for survival? Or would they pick up rocks and fight for dominance? The answer depends on whether the cooperators can achieve critical mass. Because a competitive minority can confuse and terrorize a majority, the default system is capitalism. That does not mean the majority wants it.

We are stranded on earth. To the degree that we move toward socialism and reduce the role of profit-motive, we can release the true productivity of the human race which is more strongly motivated by a desire for cooperation.