Around me I see many people romancing the idea of Socialism as the only true system which gives equality to all. Socialism started as a labour movement but now has become a political system of governance and a full fledged political ideology. It fights it’s rival capitalism which may not be used as a political ideology by any one (and if someone does, he is demonised) but is a widespread system of governance. In their rivalry, I have decided to take a side. Yes, I am a Capitalist. I will give a few pointers backing my choice.
1. First of all,why would I want to start a business ( If I am allowed to do so in a socialist country) if I know I would make no profit and all the profit would go to workers. Who would dare to open up factories. And even if the Government does open PSU’s whose losses would be compensated by the government, whose money does the Government use for compensation??? It’s ours, the taxpayers money. So if we see deeply, Government doesn’t run companies even in Socialism. People do. That happens in capitalism too. But losses are incurred by an individual and not by the entire nation.
2. I see no true socialist nation really prospering. To name a few nations, the first name that any socialist would throw at you would be China. But let me tell you, China isn’t a true socialist nation. It follows an open market policy and welcomes the big ticket multinationals. Other name is North Korea which you know is starving it’s own people in the name of communism. Other than that you find no prominent nation which can be called a socialist. So lack of a working model is a big disadvantage.
3. If you see the market trends, what is a luxury today would be affordable in future. The prices of everything settle if you give a bit of time. Cycle was a luxury in my Grandfather’s childhood but by the time I was born, cycle was very much affordable. I got mine when I was 3. So is the case with TV and cars. A few years ago, only rich could afford cars and TVs. But now middle class has got cars and TV has gone even to the BPLs.
4. Last of all it sets in a sense of competition. Every company big or small wants to give best possible product to sustain it’s market. Inferior product diminishes the market of the company. So more the companies, more the competition and better the product.So the real winner is the consumer.
These points make it very clear why capitalism for now is better than Socialism and also why most of the world follows Capitalist and Open market economy model. Socialism has to reform or perish.
-Shivam Pratap Singh
B.A Eng. Hons. , Jamia Millia Islamia