Quote:
Originally Posted by Fozzie_DeBear
Joseph Schumpeter (a famous economist) predicted the demise of capitalism and the rise of socialism...here is my understanding of the logic he presented:
-Start with good entrepreneurial capitalism (lots of innovation, companies that should fail...fail)
-Gradual centralization of capital in mega corporations
-Leading to popular discontent
-Population chooses a more socialist government model
-This model sucks the life out of good entrepreneurial capitalism
Schumpeter was calling this in the 1940's...he may still be right.
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The problem is the other alternatives aren't any better.
1) The pie is shared equally.
2) People stop working. Production decreases.
3) The pie becomes smaller and smaller. People descend into poverty.
4) Corruption and apathy set in. People are forced to work at gun point. An elite control all.
5) Popular revolt. Return to capitalism.
I guess you could argue that any system we choose is just sugar coating. It's all a cycle of wealth ending up in too few hands followed by revolt.