People sometimes seem to treat capitalism as a boogeyman, and they represent it as if we should be afraid of it. On the contrary, it is one of the best ideas which has ever existed in the world with great results.
Do you care about your parents? or do you care about random old people in the world? You might claim that you also care about random old people in the world, but unless you can show that in your action, you are just a liar who is pretending to be a saint. So the real question is, are you willing to give as much money to random old people – as you want to provide for the elders in your family? Probably not.
Ok, another question, lets say that you have a kid – and then there is a poor kid in your neighbourhood. Are you willing to spend the same amount of money on both of them to make both of them equally happy? I am not sure you would. However if you show me the bank receipts of equal spending then I would believe you.
So basically as a human being your emotional and economic circle is the same(or similar). You want to spend most of your money on people who you care about. And that is why socialism never works in the world. When we know that that our extra effort is going to benefit all of people that we love, we are inspired to put in more work. That is the basic reason, all the capitalist societies are more prosperous than the socialist ones. With capitalism, you get to keep the extra money that you earn, by virtue or your hard work for yourself and your family. Of course, you also need to work more in order to successfully earn more money, and innovate. But both of those things are good for the society as well.
Capitalism has really played an important role in improving human life throughout the world. I never understand why after so many trials and results in history, people still think that socialism is a good idea. Its a bad idea which seems to be good and tasty. Kind of like ice-cream which seems tasty in the short term but leaves you fat in the long term.
Socialism utilises the human emotion of liking and benevolence. Capitalism uses the human emotion of love. Don’t we all know which is stronger amongst the two of them?
Listen to Milton Friedman here.
neeraj's 