posted on Feb, 16 2010 @ 01:19 PM
The capitalism vs communism debate is a false comparison. Capitalism is an economic theory: it has nothing to say about form of govt; law & order;
foreign or defence policy, except that "the market" must exist. Communism is a full political ideology.
The only true comparison is in economics. Fully polarised then, the difference is between where the worth of anything is determined solely by what
people will pay for it (the market) & some govt body setting the price, likely with reference to Marx' ideas about intrinsic value based on the
labour it takes to provide (command economy). Philosophically, this is an irreconcileable dichotomy.
Despite being told we live under capitalism however, in practical reality, we have 2 economies running side by side. Some industry is considered
"strategic". Arms & Aerospace are obvious, but there are others. The price of the output is determined by negotiation between govt & producer, with
little or no reference to the market, but rather to the intrinsic value of the product based on strategy minus production costs plus whatever can be
extorted out of govt. This is similar to the EU Common Agricultural Policy, which keeps the price of food high by paying farmers not to produce, but
despite their constant complaints, stabilises the market preventing fluctuations from causing many to go bust all at once. Thus we maintain the
ability to suddenly increase food production should we ever need to, in time of war say. Recently, the same thinking has been expanded to "too big to
fail" financial institutions. These are all de facto command economy decisions. The capitalism we have is far from "free market" & subject to a
great deal of regulation & law, for the simple reason that, left to its own devices, the market does exactly what its supposed to prevent, ie stifle
innovation, by the inevitable formation of monopolies & cartels.
The problem lies in misunderstanding this fact.