Skip to main content

Socialism Vs Capitalism

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.

Comments

  1. Very well written thought. I totally agree with your POV.
    -Sreedhar

    ReplyDelete

Post a Comment

Thanks for your comments.

Popular posts from this blog

Key to adopt open source product

Friends, I am working on business solution implementation on open source product called Kaltura. Kaltura is a media management solution and has loads of features that compel any business to take a peek into it. More-over this is the only complete end-to-end open source software available to handle digital assets. But it comes with its own head ache. Considering its open source, its understandable. I feel, handling these would ensure you the success in your open source product implementation. 1. In my opinion, before adopting any open source software, build the capability to deal with the inconsistency bundled in the open source software. 2. I would avoid involving external consultants for 2 reasons.      a. I am not sure, they would bring necessary expertise on to table      b. I fear that there would be little ownership, they will not see big picture of my business (neither I am interested to share it all) 3. Alternative to that is to build the tea...

Plan your hosting options - CIR or Monthly transfer?

This blog provides an insight to plan your hosting options. Calculating CIR What is CIR? In simple terms, it is the quantity of bandwidth measured as Committed Information Rate in megabits. CIR allows you to channel as much web traffic as possible within a given bandwidth. CIR calculation will help you to model your deployment option, whether to avail hosted model, or host the application in one's own dedicated server, or avail hosting provider service for monthly transfer or avail hosting provider service in pro-rata basis. What are the important parameters one needs to consider? One important parameter is, total number of simultaneous sessions that your web application is expecting. With this value, we can derive certain other parameters that would help us in arriving at CIR. Do not mean that simultaneous sessions imply simultaneous connections. This only means that, if we assume each session represents one user, we have that many users using the application at any gi...