October 2020, Moderate Realist Ideas on Capitalism.
Suppose parties A and B each have a product or service Z that the other wants. Then there are basically three things that can happen:
1 A and B fight, the stronger takes Z.
2 They both ignore the need for Z and do without.
3 A and B work out a deal and make a trade or exchange.
All except the most zealous social Darwinist agree that 1 above is wrong. We all need to continue to work to remove from our minds the #Hegelian thinking that generates social darwinism, or 'dog eat dog' capitalism.
Most religions have helpful histories of #altruism and #asceticism that motivate 2 above. There are plenty of things that all of us want but can do without, perhaps Z is one of them. But in general this behavior is limited and becomes self destructive if carried too far.
In the #Catholic Catechism (CCC) and in many other religions, #suicide is wrong (CCC 2280-83, 2325). Activities like hunger strikes and self immmolation do little to further one's cause, compared to the good effects of broad #communication.
So we are left with 3, trade or exchange. This has many good qualities:
voluntary
uses local knowledge
pricing can vary
leaves a record
Extension of trade beyond barter requires #money. Money traditionally has these qualities:
medium of exchange
store of value
fungible
commonly trusted, often legal tender
Trade in money is facilitated by allowing limited #interest. Then #rates become semiotic signals of #prices in the money markets.
Introduction of money makes trade much easier, but also allows other sins/issues:
#Usury: too much interest, rates too high.
#Extortion: demanding money for something that is really not in an economic sphere of activity.
#Theft, #embezzlement: taking of property that is not one's own, CCC 2408-14. Usually attempted quietly, avoiding a visible fight. Theft can also occur during barter or a burglary, but under those conditions it is much more visible.
In most capitalist systems, #government is a witness to transactions like 3 above, but does not originate most of them. Government also enforces the laws against theft and other economic crimes.
Under socialism, government as witness becomes less important while government as originator grows in importance. In technical terms, socialism is government control of the means of production. Communism is complete and centralized socialism, with no private property at all.
So when does freedom stop and socialism begin? A quick estimate using the Pareto Principle (80/20 Rule), Pareto Optimality and related considerations suggests that when government owns more than about 40 percent of the productive property in a given region, that region is becoming feudal or socialist. More on this later.
CCC 2425: The Catholic Church rejects both communism and socialism. She also rejects absolute primacy of the law of the marketplace. "Reasonable regulation of the marketplace and economic initiatives, in keeping with a just hierarchy of values and a view to the common good, is to be commended."
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