Posted by klausen on July 05, 2003 at 09:21:21:
In Reply to: Re: Microislet JDRF Hybrid Funding posted by Steve on July 04, 2003 at 08:44:51:
Everyone thinks socialism is inefficient while capitalism is not, but that is just because we are so used to the manifold inefficiencies of capitalism that they are taken for granted. I think you would agree with me, however, that we could create the most human happiness by distributing wealth in the society so that the basic needs of all were met before anyone had any luxuries. If we give another billion dollars to Bill Gates he won't even notice it; but if we divide that same billion dollars into ten-thousand-dollar packets and distribute one to each of a hundred thousand poor families, that would make an enormous difference in their lives.
But since capitalism naturally operates to make the rich richer and the poor poorer, we have a country where millions have no health insurance while a few thousand at the top have cosmetic surgery; many don't have decent housing while some have three or four luxury homes; some don't have enough to eat while others can pay $300 for dinner at Sardi's, etc. In all these examples, a little money given to meet the basic needs of the poor would produce infinitely more happiness than a lot of money spent for additional luxuries for the rich. So capitalism, because it causes the money which only wealthier people can spare to invest to snowball from accumulated interest, from the profits of its use in operating a company, or from increases in the prices of what it owns, distributes money inefficiently -- if our goal is to create the maximum human happiness with the money available -- and so makes the society effectively poorer than it has to be.