“In a capitalist society, everyone is an economic planner. Everyone faces a constant stream of economic choices. How people respond to these choices both reflects and helps to determine just who they are as individuals.” - Why Not Capitalism?
Everything the socialists desire can be accomplished voluntarily under the capitalist system. The problem is, most advocates of socialism want it for others, and not for themselves. It has been said that the nuclear family operates in a socialist manner. The kids are dependent on dad and mom for every want and need. Ergo, if it works so well for the family, why wouldn’t it work for all of society? The family, of course, is a small group of related people, with parents legally responsible for the children they acquire. Yet, in his 2009 book “Why Not Socialism?”, G.A. Cohen believes that is exactly what society should aim for as well.
Socialism is nothing more than a way for governments to distribute resources. It is an economic and political system where everything is shared including property, goods, responsibility, and hardship. Supporters long for a society of equals, where no one is disadvantaged, and no one is privileged. Since competition is eliminated, the government is the king, and everyone else is a pawn.
In a capitalist system, ownership of property can be held individually or collectively, as each person chooses. Homes may be privately held, while businesses may be shared. Each owner has the final say in the function and use of their own property. Thus, capitalism rewards those who use their resources to create the most value. By doing so, it encourages individuals to develop themselves and their talents to their fullest potential. It allows the greatest number of people to live as they choose, where everyone has equal opportunity, but not necessarily equal outcomes. It is a system based on incentives. The better you satisfy your customers, the better you do. Capitalism also encourages the efficient use of resources to obtain the highest rewards. Here, the individual is king.
Private property is the foundation of a capitalist society. It defines who legally owns each asset and acts as a coordinator for future actions. These assets can then be used for productive capital and trade. In a socialist society, assets are up for grabs, with no set plan for how resources will be allocated or who can use what when.
Marxists have long conceded that capitalism beats socialism when it comes to good economics, freedom, and the accumulation of wealth. Capitalism is better than socialism. It is a positive-sum game, where both sides in a voluntary trade win. But is socialism more moral? Socialists openly boast of their unselfish motives and brotherhood, often more flattered with their virtue-signaling than their results. Yet, while capitalism may start with the self-interested motives of its actors, the outcomes may be where capitalism’s greatest virtue lies.
In Jason Brennan’s 2014 book, “Why Not Capitalism?” Brennan provides his response to G.A. Cohen’s 2009 book, “Why Not Socialism?”. To begin, Brennan exposes the failings of Cohen’s utopian tale of a socialist camping trip where friends work collectively, sharing chores and splitting the spoils, through his own fable of a capitalist paradise. Brennan finds that Cohen’s idyllic camping trip does not translate outside the limited encampment of friendship and camaraderie. And capitalism produces the same virtues of cooperation, trust, and benevolence, whether it operates in a utopian dream or the real world.
Cohen said the only reason we have capitalist markets is because of our lack of virtue. Yet, capitalism through the instruments of private property and free markets is the best way for nations to cooperate and prosper. In fact, markets do not work without high levels of trust and collaboration. It is no accident that rich nations are capitalist and poor nations are not. Wealth not only increases the quality of life so critical for a thriving nation but also promotes personal enrichment. Greater wealth provides greater levels of charity to help others in their time of need. Under capitalism, individuals can live collectively, if they choose to do so voluntarily.
Comments