Monday, August 16, 2010

Do the triumphs in capitalism far outweigh any perceived evils?

As you sit at your personal computer in your comfortable home taking advantage of your education to answer question after eating a good meal with your perfect teeth, do you ponder the evils of capitalism?



Do the triumphs in capitalism far outweigh any perceived evils?antivirus scan



Many ''evils'' of capitalism are simply a misunderstanding of the best possible outcome in an environmet of less than desrired parameters. Just because capitalism might not result in the desired outcome, that does not mean that it ''failed'' as the desired outcome may in fact not be acheivable by any mechanism, and it also may ignore other positve outcomes that were a result.



For example, the wealth of corporations is often regarded as an evil. (There is no debate that Enron was evil) However, if that corporation is responsible for the creation of jobs, opportunities for its employees to create personal wealth (retirement, home ownership, education, etc), bringing better and more affordable and innovative goods and services to market which improve everyone's day to day lives, who is to judge what is ''excessive'' coporate profit? Would you deny that corporation its ''excessive'' profits if that would mean the elimination of all of those aformentioned benefits? In ''game theory'' this is called a ''non-zero-sum game''. This means that benefits and costs add up to a net overall gain for all ''players'' - aka win-win. Nothing motivates as effectively or as efficiently as the opportunity for personal gain. Capitalism does this in spades. When that motivation is channeled into ventures that create opportunity for everyone, this is a good thing. If I make myself wealthy by creating a business that provides desired goods and services and employs 1000 people, the consumers and those 1000 employees benefit by my motivation to enrich myself. Eliminate that opportuinity to enrich myself and I do not create that business, and those 1000 jobs are not created, nor are those goods and services provided.



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