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#2407
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elsanna (12/16/2015) [-] 
Hello. How're you doing?
I was wondering if you might be able to and be willing to help me with my research. It's about economics, and I know you're educated on the matter.
I was wondering if you might be able to and be willing to help me with my research. It's about economics, and I know you're educated on the matter.
#2411 to #2410
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elsanna (12/16/2015) [-] I see. I wish you the best.
I want to learn as much as I can about the differences between a capitalistic economy, and a socialistic one. I know the basic gist, capitalism favors private ownership and promotion of profit. While socialism favors state or public ownership, and a promotion of the wealth of the nation rather than personal wealth. But if there's more to be said about how they differ, I'd like to know.
I want to learn as much as I can about the differences between a capitalistic economy, and a socialistic one. I know the basic gist, capitalism favors private ownership and promotion of profit. While socialism favors state or public ownership, and a promotion of the wealth of the nation rather than personal wealth. But if there's more to be said about how they differ, I'd like to know.
#2412 to #2411
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infinitereaper (12/16/2015) [-] Thanks. Don't worry about it tho, I'm just living my lot.
Anyways,
you probably already know this but,
Adam Smith wrote about the "Invisible hand" in the Wealth of Nations, this was basically the concept that a capitalistic society was self regulating. Kind of like supply and demand, which is the easiest example. If people all want to buy donuts, then the prices of donuts go up because increased demand means people will pay more for them. If nobody wants donuts the price of donuts goes down to attract more people to buy them. The "Invisible hand" is self regulating the market, all without governmental intervention.
On the other hand, lel, socialism controls he market, with what I think is called "central planning". This means that the government regulates the market, and this usually has disastrous results. For example, lets say the government decides that factors should produce 1000 jackets and 200 cars. And sell them for a certain price. But in reality, nobody wants or needs ******* jackets and EVERYBODY needs cars. What happens? People go ******* trying to get cars that literally don't exist. It's a terrible and inefficient system, and why socialistic systems like communism are doomed to fail.
If for example, that society used the "Invisible hand" instead, the market would self regulate, because demand for cars would make the industries generate more cars for profit, and jacket businesses would go out of business. The market will correct itself.
I forgot where the story comes from, but its a great example of why socialism ends up being idealistic and unreasonable.
It goes something like this:
And there will be a great hall where all the builders, inventors, will create many copies of things like chairs, luxuries, etc. and anybody can have whatever they want for free.
Which brings us to the most important difference: Self interest.
In capitalistic societies self interest drives people to do stuff, because they have to compete and work hard to earn the fruit of their labor, to earn money and stuff.
In socialistic societies (because of the same self interest) there is little incentive to do anything or innovate, because at the end of the day you get paid even if don't do jack **** .
Small things like this. But these are basic so sorry if this is just review.
Basically tho, basically everything in modern economics rejects socialism.
How can one make money if we give away **** for free?
They call economics the dismal science for good reason.
The biggest difference is that socialism just doesn't work.
Though I am an advocate for socialized healthcare and education.
Anyways,
you probably already know this but,
Adam Smith wrote about the "Invisible hand" in the Wealth of Nations, this was basically the concept that a capitalistic society was self regulating. Kind of like supply and demand, which is the easiest example. If people all want to buy donuts, then the prices of donuts go up because increased demand means people will pay more for them. If nobody wants donuts the price of donuts goes down to attract more people to buy them. The "Invisible hand" is self regulating the market, all without governmental intervention.
On the other hand, lel, socialism controls he market, with what I think is called "central planning". This means that the government regulates the market, and this usually has disastrous results. For example, lets say the government decides that factors should produce 1000 jackets and 200 cars. And sell them for a certain price. But in reality, nobody wants or needs ******* jackets and EVERYBODY needs cars. What happens? People go ******* trying to get cars that literally don't exist. It's a terrible and inefficient system, and why socialistic systems like communism are doomed to fail.
If for example, that society used the "Invisible hand" instead, the market would self regulate, because demand for cars would make the industries generate more cars for profit, and jacket businesses would go out of business. The market will correct itself.
I forgot where the story comes from, but its a great example of why socialism ends up being idealistic and unreasonable.
It goes something like this:
And there will be a great hall where all the builders, inventors, will create many copies of things like chairs, luxuries, etc. and anybody can have whatever they want for free.
Which brings us to the most important difference: Self interest.
In capitalistic societies self interest drives people to do stuff, because they have to compete and work hard to earn the fruit of their labor, to earn money and stuff.
In socialistic societies (because of the same self interest) there is little incentive to do anything or innovate, because at the end of the day you get paid even if don't do jack **** .
Small things like this. But these are basic so sorry if this is just review.
Basically tho, basically everything in modern economics rejects socialism.
How can one make money if we give away **** for free?
They call economics the dismal science for good reason.
The biggest difference is that socialism just doesn't work.
Though I am an advocate for socialized healthcare and education.
