Challenges of retrofitting socialism into capitalism

Challenges of retrofitting socialism into capitalism

Capitalism is a form of governance that separates the economy from the state. It is also called Laissez faire(Adam Smith).Socialism is a form of economic organization whereby there is equal access to resources and the work force is paid according to the amount of work done.(Wikipedia) These two systems of governance have had their advantages and disadvantages, successes and failures in different times in history. In general, the critics of capitalism are usually socialists while those criticizing socialism are capitalist.

Challenges

Though these two systems are different, most countries have embraced both forms in their governance. Socialism is a "classless" society (W.Arthur Lewis) or a society having just one class (the working class) while capitalism has two classes, the employer class and the employee class. This has led to a huge gap between the rich and the poor in that the rich gets richer and the government has no control over how much one can get rich while the poor have no chances of coming close to the rich. Socialism on the other hand purports equal distribution of resources by the government to all citizens "from each according to his ability and to each according to his needs". (Karl Marx).So incorporating socialism into an already established capitalism is a great challenge.

A capitalist system is a competitive system where the government does not have control on what to produce when and where. Each individual creates wealth for himself. The more you are motivated the wealthier you will be. So it will be very difficult to retrofit socialism into capitalism because the capitalist is not ready to sacrifice his wealth and ideas for the greater good of the economy. Unlike in socialism, this competition is important because each company will aim at giving its customers the best. Hence the citizens benefit from this competition and it will be difficult for them to embrace a system that advocates for monopoly.

A capitalist is not ready for the government to intervene and distribute his hard earned wealth or dictate the minimum wage he should pay to his workers. He hires workers depending on how much profit he will make.i.e.if somebody will do the same work at a lower wage, the employer will be ready and willing to hire him because of economic self interests. This is because his aim is to maximize his profits at all times.

Conclusion

A capitalist environment is a competitive and a greedy society. Everybody tries his best to accumulate as much wealth as he can. To retrofit socialism into such a system would be very difficult because no one is willing to let go his hard earned wealth. The best form of government should be one that constitutes both systems. i.e. the citizens have freedom to accumulate as much wealth as they can but the government has some control to prevent exploitation of the poor and also bridge the gap between the rich and the poor. This can be achieved in the form of the rich paying more taxes which is in turn remitted to the poor through grants, college fees or development projects.

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