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Maybe a better way to put it is that capitalist systems can produce enough excess to pay for rampant corruption, whereas socialist/communist systems cannot, sin
by toasterlovin 8y ago
Maybe a better way to put it is that capitalist systems can produce enough excess to pay for rampant corruption, whereas socialist/communist systems cannot, since they are fundamentally crippled without the price mechanism to inform resource allocation.
- ardy42 8y ago> whereas socialist/communist systems cannot, since they are fundamentally crippled without the price mechanism to inform resource allocation. Socialism does not necessarily mean central planning.
- toasterlovin 8y agoYou're right, thanks for pointing that out. I think social control of the means of production still has a similar problem to not having price signals: resource allocation becomes motivated by political considerations, rather than by a profit motive.
- ardy42 8y ago> I think social control of the means of production still has a similar problem to not having price signals: resource allocation becomes motivated by political considerations, rather than by a profit motive. Resource allocation via the profit motive is a political consideration; it's not some neutral thing that's somehow above politics.