Comments on: California Has Run Out of Money

By: Richo

Richo — Tue, 14 Jul 2009 23:17:45 +0000

Few societies allow extremely imbalanced distribution of wealth and an elite who abuse power for long. Unfortunately civil war is usually the result. E.g French revolution.

I can't understand why the rich and powerful don't see that if they take it too far, there are some serious risks. In hindsight I'm sure the French Aristocracy would have agreed to tone it down a bit to avoid the guillotine.

By: kathy

kathy — Tue, 14 Jul 2009 22:24:46 +0000

I agree with Nick, capitalism has the better prospects of advancing societies, but only if it is truly 'free'. The more intervention by governments the more socialistic and greater the possibility of corruption. When those in society are responsible for both the governance of socity and allocation of wealth the power base is too small and opportunities are limited to an elite that is self protective and exclusive. This creates a 'serf system' which is exactly how a large part of the world already live and the other half will learn to.

By: Nick

Nick — Tue, 14 Jul 2009 14:23:36 +0000

Ned - You are right of course. If true, unselfish socialism, or communism or call it what you will, had evolved in say the 14th century we would without doubt be living in 15th/16th century style today. Gradually advancing, happy perhaps but hungry and diseased still.

Capitalism gets things done through higher highs and lower lows; but oh the pain of those lows for so many people.

Game theory suggests that in any society the dedicated cheat will always win except where the honest truly cooperate. We have had our fill of dedicated cheats. If only capitalism could evolve a means whereby transparent cooperation could still reward the innovators and risk takers but at the same time include the interests of the rest we may get somewhere.

What we have at the moment is a system in which the foot soldiers are not only completely expendable but one in which the commanders are not only guaranteed 100% protection but rewarded whatever the outcome of the battle.

By: Ned S

Ned S — Tue, 14 Jul 2009 09:35:42 +0000

Nick - We've proven socialism doesn't work. While capitalism has its very brittle moments, it keeps bouncing back. I think it has something to do with which really most closely parrellels human nature?

By: Dan

Dan — Tue, 14 Jul 2009 09:13:18 +0000

Hi Guru, read your recent article in the Asia Times (http://www.atimes.com/atimes/Global_Economy/KG11Dj01.html) - very entertaining.

By: Lachlan

Lachlan — Tue, 14 Jul 2009 08:53:34 +0000

All I see of the last at least 70 years, are mixed economies ie.some free market strategies blended with some interventionist stategies. Fascists manipulate markets too similar to the socialists.
I dont let myself worry about what governments do, its beyond my control.

By: dsylexic

dsylexic — Tue, 14 Jul 2009 08:26:54 +0000

nick,
nobody is shedding any tears for phony corporatism that passed off as capitalism.we never had a free market and there will never be one.

By: Nick

Nick — Tue, 14 Jul 2009 07:16:35 +0000

"The problem with socialism is that you eventually run out of other people's money."

But surely if there is anything this current disaster has shown it is also "the problem with capitalism."

Socialism or Capitalism fail because of human nature - basically too much greed and too few ethics.

Time for the computers to take over!