Before people make judgments it would be best to learn about something. There have been many protests against capitalism, but so far nothing else has even come close to the benefits to the world of capitalism. In fact, it saved China from going further downhill until Mao's death.
Those who protest want their money from others simply because others are more wealthy. And they are willing to kill the goose that lays the golden eggs, just to get a couple of eggs. But that has never, ever worked in the history of the world. None of the other forms have worked.
TEACHERS SHOULD LEARN
Many teachers, not to their fault but only to their exposure, see capitalism as "bad" and seek impractical solutions to benefitting mankind! Teachers who are paid by a government agency do not really see or understand the nature of capitalism, so they tend to teach that it is not good for people and not fair. They need to be educated about capitalism so they will at least have some knowledge of what they are talking about, rather than base their conclusions on presuppositions, lack of facts, lack of practicality, and lack of reasoing.
Transfer of wealth by not earning it encourages an entitlement mentality, a mentality of taking from others. Those who say we need to redistribute wealth are simply looking for somebody else to depend on. They then go into a culture of dependency which ruins all those involved in it and some who are just around it. Read The Dependency Problem.
BECOME FULLY INFORMED, FIRST
People are uninformed, read the followng paper about the obligation to teach about capitalism.
Definition: an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.
Read The Professor Who Failed His Entire Class. He offered them a deal to choose how to distribute grades. All failed, to their great surprise, and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed.
What are the benefits of capitalism?
The single greatest benefit that capitalism provides is that it enables human choice.
Capitalism establishes a social contract that makes it possible for individuals to exercise their franchise and free agency. It gives people the ability to be secure in themselves and their possessions and, having provided security, it enables people to assume risk that they were previously unwilling to assume. It creates the
necessary conditions for people to escape poverty and create wealth for themselves and for others.
In short capitalism enables and fosters the sovereignty of human choice. By enabling the individual to act for himself and be the residual claimant for the benefits and costs of those actions, capitalism fosters economic growth, eliminates poverty, fosters human dignity, conserves scarce resources, stimulates innovation and fosters invention.
IS THE PIE A FIXED SIZE? ARE WE WORSE OFF, IF SOMEBODY ELSE IS BETTER OFF?
Simply put, Africa is poor not because Europe is rich, but because Africa has always
been poor and because Europe adopted a recipe for creating wealth.
HOW DO WE KNOW CAPITALISM WORKS?
The Chinese example.
Fortunately for educators several such natural experiments exist. Following World War II the Communist Party in the People’s Republic of China abolished most forms of private property and eliminated the rule of law. Competitive markets were outlawed and without the profit incentive, entrepreneurial activity ground to a halt. Through the 1950s and 1960s the standard of living for the average Chinese citizen actually fell to levels below those that existed during the Ming Dynasty and
programs such as the Cultural Revolution and the Great Leap Forward destroyed human and physical capital throughout the country.
After Mao Zedong’s death things began to change for China. Observing the growing prosperity of ethnic Chinese residing in the Pacific Rim outside China, Deng Xiaoping rightly concluded that if Chinese could create wealth outside China they could create it within China. Deng chose to adopt policies of wealth instead of policies of poverty and began a slow, methodical process of introducing the institutions of capitalism into Chinese society. First came trade with other countries, laws regarding investment were relaxed, rudimentary private property laws were developed, competition was permitted and entrepreneurs were encouraged to deliver Chinese goods and services to the world. In the short span of thirty years the standard of living of the average Chinese citizen increased over eightfold and China
became an economic powerhouse. Today the reforms and changes continue apace and capitalism is finding its natural extensions into personal freedoms and human rights. True, China continues to face difficulties with its transition, just like any other emerging economy, but the lives of the average Chinese are markedly improved and continue to improve.
INDIA AND SOUTH KOREA
While North Korean people are close to starving, just south of them South Korea is prospering. That is due to capitalism.
And India has started to burgeon when it started to adopt capitalism and to gather capital. It is growing rapidly and benefitting many, many people who were stuck in dire poverty. It has a way to go, but it is going fast.
China, India and the Koreas
Page 14 of 17
institutions are nothing more than the formal and informal rules of the game that a society has adopted
to regulate and direct the choices its citizens make.
Accounting for government maust include all things. including a balance sheet.
Should we pay people to be poor? or what is the alternative , as we cannot let people starve...
health care - what is good health care? good diet, exercise... so..l. target those. Use incentives
at which point aere we reducing the eijncentive such that the beneifts to the poor are offset by the loss in total eonimic benefit, size of the pie. ecucat people how to get their share
highest payoff s are...probability obtained, what can we afford?