seems like he worked his lesson on Marx very good
Except with Marx all of the co-operatives are owned by the state with them imposing conditions, payments and if such a co-operative can exist. So you have NO economic freedom and very little personal freedom.
No mother-in-law did not enjoy working in a Russian collective for ZERO pay (or 100% taxation) take your pick the result is the same. So why have a job you may ask? Their productivity scheme was if you don't have a job and clock in and out everyday then you go to jail, which usually meant a Gulag in Siberia. There was no incentive to work hard, so you did as little as possible and stole anything you could get away with as a form of payment.
This is why socialism does not work as it is a top down authority which imposes its will on society. So the people at the top have to be all seeing and knowing in what people want and need and invent and this is of course impossible, so you get very inefficient allocation of capital and resources, which is why all purely socialist countries end up getting poorer and poorer. Think North Korea and Cuba as current examples.
Where as capitalism is bottom up approach where an individual can come up with an idea, allocate capital and resources and sell the end result. But to be sucessful, they need to make people aware of the product or service, through advertising and marketing and it has to be an attractive product or service at the right time, place, price and quality to sell. This leads to individuals or small groups allocating capital and resources which is much more efficient. It is also why communist countries like China have introduced capitalism as it works better.
good time for a question.. does anyone now think the market is free ?
Yes and no, the freedom to create your own business is there, but many corporations have bought competition, where monopoly market share is set too high at 25%. Four companies does not provide enough competition. If we had in the UK the big 10 banks instead of the big 4, then they would not be too big to fail. Saving banks from bankruptcy is a perversion of capitalism as badly run business should be bought at a low price and management kicked out or should fail and if bought senior management kicked out again. No business should be able to go over 10% market share by buying other companies, but this have to be agreed as part of an international trade agreement. Most near monopolies ultimately fail as they become complacent and badly managed. This is currently happening to Microsoft, Nokia and RIM all of whom may not survive or only as a minor player and will also probably happen to Apple in the long term. When any business makes more than 10% profits, this then makes it an attractive proposition for rivals to invest in producing competitive products. Apple is trying to keep their monopoly and market share through patent wars.
International cartels like oil, the best way to defeat them is to development independent resources or alternative technologies which the US is currently working hard on at the moment with shale oil and gas resources, countries are becoming more energy efficient and developing alternatives, like bio-fuels.
wrong .. capitalism means banking/money collected in few private hands (as history prooved).. which will never let its force out of hand.. expecting a different behaviour is against the nature of power ..
In the UK 60% of employment and over 50% of GDP is through SMES. These are businesses that range from self-employed to businesses with up to 50 employees. 80% of SMES stop trading or go bust withing 5 years, so it is not an easy route, which with ever increasing EU and UK regulation (by socialists) and high taxation (by socialists) is killing small enterprise, which is a major reason why the wealth gap between top 1% and the other 99% in the UK and Europe is getting bigger. The 99% through regulation and taxation are being starved of capital to start new businesses and due to regulation the start up costs are forever increasing, with high taxation meaning the risks v rewards make it just not worth it. So they cannot get towards being one of the 1%. This is why my next business where I need to employ people again will not be in the UK or EU.
EU and national socialism is killing Western European enterprise, and only allowing crony corporate capitalism to survive. Many EU directives are aimed at stopping through regulation small business from surviving, so their favoured corporations, with their lobbing treats survive. This is not a failure of capitalism but of democracy. In most Presidential / Government democracies, the elected Government define and pass laws that are rubber stamped by the president. In the EU the UNELECTED president and council of ministers define and implement laws that are rubber stamped by the EU parliament. This is why is is known as the EUSSR as there is no real democracy and much corruption, just like the old USSR. I hope for your and Turkey's sake that you never join EU.
A friend of mine is having a nightmare time under the new EU commercial vehicle directive and laws, where he is a lorry owner / driver with his own operators licence, VOSA who inspected his vehicle found, a rear stop lamp bulb had blown and the brake air-pressure gauge was faulty, although brakes were perfect. He has now had much paperwork to complete and interviews to keep his operators licence and now he is on VOSA's radar he is having his lorry randomly inspected by them on average once every two weeks, which means he losses a days work. I can't see Eddie Stobart having the same problems.
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Topic: Milton Friedman, 100th Anniversay Today (Read 4213 times)