Socialized Capitalism, second edition
Since the first edition has been hijacked by some forty or so posts which have nothing to do with the topic, I'll give it another try:
People say we have capitalism in the United States, which we do. But having capitalism is something like having religion. It can cover a multitude of saints and sinners. What kind of capitalism do we have?
We started out with largely unregulated capitalism. However, we found that largely unregulated capitalism didn’t work because it begot such evils as child labor, unsafe working conditions, exploitation of the poor through long working hours and poverty level wages, unsafe food and drugs, exploitation of natural resources and the environment, deception of consumers, dishonest and fraudulent business practices, etc. It became clear that in order for capitalism to work in a fair and balanced way, it had to be socialized, that is, made fit to live among the people without exploiting them. That is why there have been laws and regulations to rein in raw, unregulated capitalism.
It is still capitalism, but it bears little resemblance to the predatory capitalism of the late nineteenth and early twentieth centuries. These various laws and regulations may be said to have the purpose of socializing predatory capitalism so as to make it fit for the general population in the same sense that we socialize children and animals so that they can fit comfortably into society without hurting society too much.
The genius of capitalism is that it gives people freedom to do as they want, so that their instincts for improving their own personal lot can result in improving the lot of society as a whole. In effect, it puts man’s greed to work for the benefit of all. But greed is not inherently concerned with the rights of others, so, left untended, greed will find a way to exploit rather than benefit. It is like a campfire that initially warms people but, left untended, reaches out to devour the forest, or like a wild horse that can be of great service to man but only if it is socialized, that is, only if reins are put on it to control it.
So, laws and regulations are put in place are to rein in man’s greed, to socialize capitalism so that it can benefit society without exploiting it. Socialize in a sense similar to the way owners socialize dogs, prisons attempt to socialize criminals, and juvenile detention facilities attempt to socialize delinquents so that society can benefit from their presence without being victimized. Domesticate and tame might also be used to describe the process.
Because of this socialization of capitalism, we now have child labor laws, wage and hour laws, industrial safety laws, food and drug laws, business regulation laws, securities regulation laws, environmental protection laws, usury laws, deceptive advertising laws, consumer protection laws, etc.
Capitalism has proved its worth. It has catapulted the US into first place in world economies. But it is not the predatory capitalism of the past but the present socialized capitalism that has given the United States its greatness. It is, however, an never-ending process. Greed cannot be eliminated, only controlled. So greed will continue to look for ways to exploit, and we must continue to look for ways to regulate. The Enron type scandals are a good example of this.
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