January 13, 2005
Faults
No matter how much one bashes socialism, one cannot gainsay the fact that it is something people take instinctually to. Most capitalists rationalize this by saying that many of the "fallacies" behind socialist thinking like the broken-window fallacy etc. are not obvious, and that the insights behind capitalist thought require some contemplation. Basically they brush aside the natural fondness of people to socialist thought, as mere "economic illiteracy".
I do not quite think economic illiteracy describes the phenomenon sufficiently. A more reasonable explanation is that there are some very deep faults with capitalism as it is currently. Fundamental faults. I'd state that it is these faults, that create an instinctual dissonance, and consequently distrust towards capitalism.
In the next few posts, I shall list some of these faults. Note that just because there are these faults, doesn't detract much from capitalism. As it turns out, a proper addressing of these faults - for e.g. in some socialist systems - seem to result in far greater faults.
I'm not an economist, but I've a feeling there must some theoretical impossibility results
(like Arrow's impossibility theorem in game theory) lurking in here somewhere.
For those who believe that capitalism is the best system existing currently, and who seek to wean people off destructively socialist paths, a proper understanding of these faults is very much necessary.
I do not quite think economic illiteracy describes the phenomenon sufficiently. A more reasonable explanation is that there are some very deep faults with capitalism as it is currently. Fundamental faults. I'd state that it is these faults, that create an instinctual dissonance, and consequently distrust towards capitalism.
In the next few posts, I shall list some of these faults. Note that just because there are these faults, doesn't detract much from capitalism. As it turns out, a proper addressing of these faults - for e.g. in some socialist systems - seem to result in far greater faults.
I'm not an economist, but I've a feeling there must some theoretical impossibility results
(like Arrow's impossibility theorem in game theory) lurking in here somewhere.
For those who believe that capitalism is the best system existing currently, and who seek to wean people off destructively socialist paths, a proper understanding of these faults is very much necessary.
