To guarantee the basic needs of all people are being met, it is easy to see a lack of government intervention and capitalist economies fail to ensure it. While it sustains a society focused on individuality, it is evident that capitalist economies let their citizens down. Democratic socialism and government intervention would be the best economic system for a country’s citizens because it allows their basic needs to be met and personal freedoms to be sustained.
Capitalism is a system that promotes greed and supports corruption. In a capitalistic society, everything is grounded in greed. With zero help from the government, people are forced to provide solely for themselves, because they don’t receive any help. While this may encourage a more efficient economy, it also encourages corrupt business owners. Everything is based on profit, not integrity or quality. John Maynard Keynes, British economist, and author of the book The End of Laissez-Faire argue: “Many of the greatest economic evils of our time are fruits of risk, uncertainty, and ignorance. It is because particular individuals, fortunate in a situation or in abilities or able to take advantage of uncertainty and ignorance, and also because for the same reason, the big business is often a lottery, that great inequalities of wealth come about, and these same factors are also the cause of the Unemployment of Labor or the disappointment in reasonable business expectations and of the impairment of efficiency and production.” (245). Keynes argues that a Laissez-Faire society would result in disproportional wealth in big corporations, with the business owners only gaining more wealth. Larger companies strive to beat out smaller ones. With companies aiming for quantity and profit rather than quality, the customers suffer. In a socialist system, the goal is not profit, but ensuring the well-being of citizens. While some argue that a socialist economic system is idle, providing for all is more important than productivity, especially when a majority of people are suffering because the government will not get involved. With everything being for the purpose of profit, the people lose and big businesses, paired with neglect of individuals, win.
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Socialism gets rid of many of the detrimental aspects of free-market economies, but also adds many benefits. Under a socialist system, the government is not based on greed and profit. Businesses would be set up by the government for the benefit of the community. Socialism is not driven purely by income, allowing for the basic needs to be provided to all individuals. There is still a drive for profit in sectors where it is beneficial, still giving room for productivity. Socialism combines many of the advantages that capitalism holds, such as freedom and independence, while adding benefits such as providing for all. German-born Karl Marx, the author of The Communist Manifesto, known for his revolutionary theories surrounding socialism and communism, writes: “We by no means into to abolish this personal appropriation of the products of labor, an appropriation that is made for the maintenance and reproduction of human life, and that leaves no surplus wherewith to command the labor of others. All that we want to do away with is the miserable character of this appropriation, under which the laborer lives merely to increase capital and is allowed to live only insofar as the interests of the ruling class require it.” (349). Marx argues in favor of communism in order to abolish the economic system in which factory owners take full advantage of poor factory workers and to stop the rich from accumulating even more wealth. The socialism that Marx argues for is too extreme for the government today, but the ideas on which he bases his theories have many beneficial points, such as the equality of all people and a focus on a strong, central government. Democratic socialism ensures a just society, but would also allow people to own private property and items. The people can stop government corruption through their votes, and the higher taxes are made up for by the things that the government in turn provides for the people. Under democratic socialism, individuals have the power and can help determine the level of socialism they want in their economy. The benefits that socialism provides, overshadow the possible flaws. Socialism is able to provide for the needs of the people, an area in which market economies fail. When taking into account the well-being and freedom of the people, socialism is an economic system that works for all individuals.
Market economies inevitably lead to large class inequality. In a capitalist economy, workers who supply the labor are the ones who are paid the least. Laborers are paid little compared to the value of the work that they contribute, and often times their wages are in no way a living wage. This lack of government intervention causes horrific exploitation of labor. John Kenneth Galbraith, author of The Position of Poverty writes: “The corrupting effect on the human spirit of unearned revenue has unquestionably been exaggerated as, indeed, have the character-building values of hunger and privation. To secure each family a minimum income, as a normal function of the society, would help ensure that the misfortunes of parents, deserved or otherwise, were not visited on their children” (506). Galbraith argues that while a Laissez-Faire economy may be more competitive and encourage innovation more than other economic systems, this is outweighed by the fact that it neglects many members of society; including the working class. The working classes often face horrifically low incomes, which put them in financial positions they cannot get out of without help from the government. While this is beneficial for those few, the vast majority of citizens are given the metaphorical short straw. With wages so low, the owners of these large companies get wealthier, and a lot of the income in a country is concentrated among the elite. A free market economy has many benefits for the wealthy but falls short of helping those in need. All that capitalism does, is prolong a system of poverty and exploit those in need of help.
Democratic socialism is the most beneficial economic system for all people and is the economic system that will help the government provide for the basic needs of all individuals.
Works Cited
- Galbraith, John Kenneth. “The Position of Poverty.” A World of Ideas. Ed. Lee A. Jacobus. Boston: Bedford/St. Martin’s, 2006. Print.
- Keynes, John Maynard. “The End of Laissez Faire.” A World of Ideas. Ed. Lee A. Jacobus. Boston: Bedford/St. Martin’s, 1990. Print.
- Marx, Karl. “The Communist Manifesto.” A World of Ideas. Ed. Lee A. Jacobus. Boston: Bedford/St. Martin’s, 2006. Print.
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