Socialism or Capitalism, Do We Have to Choose?

Capitalism versus Socialism is one more principled than the other. In this day in age oddly Socialism appears to be a dirty word to those who do not realize they are direct benefactors of many of the services it creates, instead Socialism becomes synonymous with inefficient, distain, defective, weak, incapable and lazy. In contrast, Capitalism appears to be held in high regard, synonymous with respect, determination, purpose, hard work, strength and admiration. How did these assumptions come to be; the influx of opinions from the news media, selfishness, politics, emergence or sustainment of a caste system, the struggle for class superiority, a distraction to real issues or merely a lack of understanding?

To innumerate, when did the coexistence of Socialism and Capitalism “appear” in the minds of some American as no longer admirable, viable or tolerable? For example, during the 2012 campaign, President Obama was ridiculed and mocked by opposition via rallies, social media and news outlets for his socialistic work as a community organizer, a advocate of change for the common good or betterment of a community. Comparatively, presidential elect Mitt Romney was praised for his capitalistic role as a successful entrepreneur to include his lead role at Bain Capital. Not to minimize his accomplishments for they were irrefutable, but at the same time “Bain’s modus operandi was to invest in companies, leverage them up with debt, and then sell them off for scrap, allowing Bain’s investors to walk away with huge profits while the companies in which Bain invested wound up in bankruptcy, laying off workers and reneging on benefits. 22% percent of the companies in which Bain invested wound up either in bankruptcy or shutting their doors entirely, while Bain itself made billions of dollars for its investors” (Wall Street Journal).

Notably, does this illustration prove one ideology grander than the other? Before answering, there is something true and honorable to be said of those who seek truth and understanding before advocating for a cause that impacts or changes the dynamics of one’s livelihood. As such, let us first “broadly” examine the definition of Socialism and Capitalism.

Socialism is a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a “whole”. Whole is none discriminatory, it’s all-inclusive and recognizes value in everyone -workers and entrepreneurs. It essentially suggest that everyone shares in a piece of the pie, some a little larger than others, but not to the extent that it defines winners and losers or creates massive gaps in the distribution of wealth.

How is it that the richest 1% in the United States now own more wealth than the bottom 90%? There is something gravely alarming about those numbers, even more so when a large portion of the 90% are in denial or feel doomed or forced to except the reality of their circumstances. Moreover, refuting the need for some form of socialism rejects the notion that inequality exist or on the rise, it denies restitution to those who have contributed years into a system that evades certainty on a return on their investment. Finally, it dishonors or devalues the legacy and contributions of Martin Luther King, Theodore Roosevelt, Mary Wollstonecraft, Nelson Mandela, Helen Keller, ect.

As Americans we revere anyone who engineers an idea and brings their vision into fruition. Nevertheless, no man or woman works in vacuum. In direct of opposition of Socialism is Capitalism, Capitalism is a political and economic theory where production and distribution are privately or corporately owned and development occurs through the accumulation and reinvestment of profits gained in a free market. Producers compete to maximize their profits and those who also invest back into the very people that contribute to their success fairly (employees and managers) help make our economy economically viable and honors the contributions of great Entrepreneurs like Bill Gates, Madam C.J. Walker, Henry Ford, Larry Page/Sergey Brin, Oprah Winfrey, Walt Disney etc. Capitalism produces wealth “which is usually not used for daily expenditures or factored into household budgets, “wealth provides for both short- and long-term financial security, bestows social prestige, and contributes to political power, and can be used to produce more wealth. Hence, wealth possesses a psychological element that awards people the feeling of agency, or the ability to act”. (Wikipedia)

Capitalism is crucial; it is what this country was founded on and what contributes to the vitality and fluidity of the American economy. Yet at the same time, capitalistic views can often lead some Americans to feel that there struggle is not real and if they just work a little longer, a little harder, a little smarter, obtain more education opportunities and the accumulation of wealth is limitless. This idea can be misleading. For example, “inheritances and gifts also play a major role in the distribution of wealth, accounting for an estimated one-quarter of total household wealth accumulation in the United States. Such wealth transfers are also an important source of both business and home ownership. The conventional wisdom is that inheritances contribute to the overall inequality of household wealth. Moreover, it is commonly believed that inheritances impede intergenerational wealth mobility and play an important role in accounting for the intergenerational transmission of economic and social privilege? (Monthly Labor Review, M. Gittleman). Similarity, it is the accumulation of wealth that grants more options and eliminates restrictions about how one can live- in other words wealth produces more wealth. Theoretically this appears sound until theory meets reality where the richest 1 percent in the US owns more wealth than the bottom 90 percent.

Unremarkably, the growth of income inequality has long been a hot topic around the globe. As such, I trust in both, Capitalism and Socialism, and believe one is meant to balance out the other, not drown out or take over, to do so is counter productive. I believe the balance of both powers lead to a greater good, it means no one is left behind, and it is what breaths life to the second paragraph of the United States Declaration of Independence “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”