LETTER TO THE EDITOR / CAPITALISM, SOCIALISM and DEMOCRACY

Roger C. Kostmayer

Labels cause more problems than solutions, and are often used politically as accusatory weapons or cartoons of their adversaries. Capitalism and socialism per se, are neither all good nor all bad, and most economies and governments today are a mix of the two.

Simplistically, capitalism implies private owners, motivated by profit, are in control – rather than the state. Thus, private enterprise and (theoretically) competition would rule. Socialism is also an economic and political system, but it says control by the community as a whole is the answer – rather than by the unrestrained economic markets. Most importantly, we need to remember American democracy combines capitalist and socialist features but its guiding principle is government of, by and for the people. Historically big business, big labor and big government balanced and checked each other to prevent giving any one of them too much power.

Some argue the best way to grow our economic pie is with basic capitalism, but the best way to allocate the slices fairly is basic socialism. Regardless of the eclectic mix of the two at any given time, ideological solutions should be judged only by how effectively they serve the common good – not by how effective they are as political ammunition.

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