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It works not in theory, but in practice. And the main reason is the freedom inherit in swapping goods for money by the 2 sides by their own will. The freedom to
by freefaler 3y ago
It works not in theory, but in practice. And the main reason is the freedom inherit in swapping goods for money by the 2 sides by their own will. The freedom to choose where to invest your money gives the capitalism inherently more freedom that any other centralized system of distribution.
Communism can't work because economic inefficiency kills the system. Look at Russia and Ukraine now, during Soviet times after 1970 they imported grain, now they're one of the biggest exporters. It's not only technology, it's the "capitalism" at work.
In USSR, only 3% of land produced almost all fruits and vegs in the market, because the collective farms were given the permission to allow private land use and selling of produce on the market. They needed to give the collective farm a certain percentage of the crops, but what they kept they could've sold. Again capitalism at work... Efficiency was trough the roof.
- tored 3y agoSure, if we two meet in the forest and I swap my piece of fur for some dried meat it is a win. But the problem with capitalism is that in the long run it starts to centralize in a similar manner as communism for efficiency and thus goes against the "Local knowledge problem"[1] As a result what typically happens is that general quality goes down and that is what we observe can right now. Please also read my other response in this thread. https://news.ycombinator.com/item?id=39978645 https://news.ycombinator.com/item?id=39978645 [1] https://en.wikipedia.org/wiki/Local_knowledge_problem https://en.wikipedia.org/wiki/Local_knowledge_problem