4 ms·
While we generally associate Capitalism with market economy and Communism with planned economy (with its corresponding bureaucracy), that does not mean that Cap
by Mordisquitos 4y ago
While we generally associate Capitalism with market economy and Communism with planned economy (with its corresponding bureaucracy), that does not mean that Capitalism vs. bureaucracy is a valid dichotomy, not even in the sense of being two ends of a continuous spectrum.
Capitalism and Communism are types of ownership of the means of production, while market economies vs. planned/bureaucratic economies are ways of distributing or allocating produce.
Capitalism is ownership of the means of production and its produce by individuals who are not those who exert labour to produce, while Communism (in its myriad of varieties) can be summarised as ownership of the means of production and its produce by those who exert their labour. One can have extremely bureaucratic regimes in a capitalist economic system (for instance, the highly bureaucratic health insurance system in the USA as compared to how straightforward non-capitalist universal healthcare systems are). On the other side, one can have an essentially communist ownership structure operating in a market economy (e.g. worker-owned cooperatives competing with each other in a free market).
That's not to say that Capitalism doesn't very often go hand-in-hand with market economies, but it is a mistake to attribute the merit of the free market as an efficient allocator of resources to Capitalism itself, in a "merit by association". Furthermore, while a (perfect) free market may be provably the most efficient way of distributing resources, the efficiency of a market has no value as of itself; it depends on what resources are being exchanged in the market and to what extent the interests of the market participants are compatible with each other (a human being with a limited lifespan and need for survival does not make the same kind of decisions as a potentially immortal institution).
- simple-thoughts 4y agoThe USA is a mixed economy, like most advanced economies. That means it uses both communist and capitalist ownerships of production in different situations. Health care is an interesting failure case, where the specific mix of private and public ownership has failed in some ways (note that concierge services in the USA are not available in all countries, and there are many treatments that are only available in the USA and cannot be easily accessed elsewhere so there are some advantages). Communism must utilize some sort of bureaucratic system as otherwise technocapital feedback loops will re-emerge. So there has to be a human control system in place to monitor and squash these sprouts of cancerous growth. A worker owned cooperative would not be a communist system, since the means of production are held by a private collective and not by the public society. It’s no different than a private family owning capital, albeit less incestuous.
- marcosdumay 4y ago> On the other side, one can have an essentially communist ownership structure operating in a market economy Not for the entire economy. If you allow local decisions for investment, you are basically restoring capitalism. Economy-wide communism requires bureaucratic central planning. (But well, the absurdly automated production we are moving into breaks capitalism too. We can't keep either.)