Is the capitalistic system of producing goods and services the best economic system? ?

Question

Why? or... why not?

Answer 1

No political or socioeconomic model is "best".

It has to do with what people like and choose.

In general, people want to 1) Participate and share authority - or at least to think they do, 2) Have reasonable chances to climb the social ladder and 3) Lead a life based on their individual beliefs, values and metaphysical choices.

Capitalism, although imperfect and overrating the notion of money, has proved since Renaissance that it provides what people want from life.

It is also true that countries with extended record of success in trade and capitalist production, like the English-speaking countries, have a heavy cultural bias favouring Capitalism, even to its most inegalitarian versions.

Non-capitalist systems work apply in situations where decision making is not possible. For instance in China, it may be highly impossible to have a modern electoral system like that in the USA, because 1,5 billion people can not vote and have their votes counted in a reasonable ammount of time. Tomorrow 1,5 billion Chinese will have to consume 2500 calories to live. Quite possibly, 1,5 billion people times 3 meals, gives 4,5 billion meals daily and one single government can not do that.

Succefull non-capitalistic systems can be found in small communities with extremely close ties, usually of religious nature. Such examples may be Monasteries (Christian, Buddist), Kiboutzim in Israel, Ashrams in India, etc. These are very very small pockets of people that due to their size can not effect the society around them.

It is true, though, that people do not like to experiment with social systems very much and they change system only when the old sytem is deemed corrupt and/or inefficient. Ergo, all possible systems have not been tested, because a) it is very costly in resources and b) people fear change.

However, common sense, experience and small adjustmens have proved that Capitalism serves people better. If inequality spreads above a threshhold people are willing to accept, social unrest will occur and Capitalism may have to self-adjusy yet one more time.

So, "good" capitalism does work, but some forms of capitalism do not.

Opposed to Capitalism are varieties of Communism and Fachism. Both suppress individualistic urges favouring uniformity, abolish freedom of speech and religion, usually are racist, but guarantee a minimun standard of life. This standard deteriorates to pverty over time, with corruption, neptism and inefficiency. People end up living in a misery they can not control. Communist and Fachist regimes deliver their best very early upon their establishment and then they ran on empty, as their unique fuel is people's enthousiasm. As the latter fades out, so do these regimes.

Anarchy is not a system but the full denial of any system. It is opposed to all regimes and systems, but has never had any serious chance to promote itself.

The right question, then, would be if Capitalisn if best for this given country or that given culture.

You can not have real capitalism in a small community of 50 indigenous people, as they are not numerous enough to have complex relations and diverse needs.

You can not have real capitalim in Chine either, as the average person does not influnce his system of a one single party, which wins every election. In China there is a limited capitalism, since a small capitalist class trades and has a high standard of living.

Capitalism can not work either in cases of extreme disparity between rich and poor in small countries. A small state with say 20 super-rich people and 1 million in near starvation can not achieve a stable and healthy capitalism, since money does not circulate but is locked away.

Capitalism has spread with Christianity and mainly with Protestantism, as Christanity inisted that people should keep their word, thus building trust between people. That model of building trust can and has been followed be people of all creeds and faiths nowadays. Protestantism teaches hard,relentless work and encourages abstention from luxury and waste of money, to a higher degree than other religious paths.

Capitalism is not to be confused with pre-capitalisitc forms of trade societies. In pre-capitalisitic trade, people trade just to make a profit. In Capitalism people do not trade, they invest. That means that big summs of money are put together to achieve a specific profitable goal and profits are re-invested instead of being spent to unessasy extravagant luxury.

Definitely capitalism is best for all naval nations, like the English-speaking countries, ie North America, but unsuitable for others due to practical issues and cultural bias against it.

In some fictional societies money is willingly given up, as there is an infinite supply of food, energy and materials, for goodness, self exploration, self development and spiritual quest. Such society is the unified human race in Star Trek series, happning in the 24th century. The key notion here  

Answer 2

Probably best in terms of driving a continual increase in productivity, due to the natural incentive of an increasing profit.

Answer 3

Take a good look at Russia. I don't feel like waiting in line all day for a loaf of bread.