I was discussing sociallism vs capitalism with my father, who is a retired economics professor. Found some interesting facts ... Sharing them ...
Socialism believes in distributing wealth equally. For example: If there is INR 10000 and 10 people in the pool, every one gets INR 1000. Wow, that sounds great in a diversified society like ours. Will this work? My take is NO. Because, the focus is only on sharing the wealth. If every one gets equal share, high acheiver will downgrade himself or herself and low acheivers will still downgrade themselves. This is a chain reaction and will reach a point where you will not have anything to distribute. The opposite side is 'Capitalism' where only the acheiver gets the rewards for his or her efforts.
India adopts hybrid policy of Socialism and Capitalism, where the distribution of wealth happens through public sector enterprises and wealth creation happens through private sectors. The policies will be made in such a way that private sector will be encouraged to create wealth. The efficiency of private sector will create wealth. The income earned through private sector will be diverted to sustain public sector where livelyhood opportunities will be provided to have-nots or less-haves. The income earned through either private or public sector will also be used in welfare programmes for the poor.
Conclusion: Socialism will eventually result in equal distribution of poverty in reality, though the intent is the equal distribution of wealth.
Socialism believes in distributing wealth equally. For example: If there is INR 10000 and 10 people in the pool, every one gets INR 1000. Wow, that sounds great in a diversified society like ours. Will this work? My take is NO. Because, the focus is only on sharing the wealth. If every one gets equal share, high acheiver will downgrade himself or herself and low acheivers will still downgrade themselves. This is a chain reaction and will reach a point where you will not have anything to distribute. The opposite side is 'Capitalism' where only the acheiver gets the rewards for his or her efforts.
India adopts hybrid policy of Socialism and Capitalism, where the distribution of wealth happens through public sector enterprises and wealth creation happens through private sectors. The policies will be made in such a way that private sector will be encouraged to create wealth. The efficiency of private sector will create wealth. The income earned through private sector will be diverted to sustain public sector where livelyhood opportunities will be provided to have-nots or less-haves. The income earned through either private or public sector will also be used in welfare programmes for the poor.
Conclusion: Socialism will eventually result in equal distribution of poverty in reality, though the intent is the equal distribution of wealth.
Very well written thought. I totally agree with your POV.
ReplyDelete-Sreedhar