I really wish there were an "other" or Socialist option. Pure Communism and pure Capitalism are equally extreme abstractions from reality that ignore basic elements of human experience.
Straight up, free market capitalism is basically a pipe dream wherein it is imagined that if you remove all government or other oversights and constraints from the noble class of capitalists, magically the market will run with perfection. Say's Law will come into play ("no gluts" or overproduction), the market will ensure that everyone is matched with the best job and is paid a wage that is 100% in accord with what is deserved, and, most importantly, involuntary unemployment will not exist such that anyone without a job and an income is basically a freeloading piece of garbage and will be left to rot in the street.
There are any number of issues with this, one of the primary ones being that no human endeavor works like this - people are, themselves, imperfect and irrational - the idea that simply removing restrictions would somehow magically allow the market to achieve perfection is naive at best and deliberately misleading at worst. I can't imagine why manufacturers and the like would want to cultivate the idea that letting them do whatever they want is the best plan for economic success...oh wait. There is a reason why things like exploitation of child labor and adulteration of food products with unsafe materials were practices that had to be banned by law - if you don't make it illegal for people to screw over other people for money then that is exactly what happens, especially in the U.S. where our culture has replaced the ancient (and also wrong) notion of superiority of blood with that of superiority of money.
There are also other problems with Capitalism - although I'm not a Marxist, Marx did make some rather perceptive criticisms of Capitalism and the one that I have always most agreed with is the way that Capitalist theories of value ignore the actual production of the good or service being discussed. They take raw materials/components and other preliminary expenses and then magically they become the end product, that the Capitalist is then able to sell for profit or loss according to how the end product compares in value to the initial costs of production. Nowhere is it ever discussed how exactly the "widget materials" become "widgets" nor is there any discussion of the value imparted to a product or service by the very workers who are creating the product. It would be like me denying that my employees create any value of their own when they are on the phones making sales and up-selling services to customers but rather only looking at the initial expenditures of our company and then the end profit without any consideration of how we got there. It's what Marx famously called the "Black Box" and it's utter lunacy.
Basically, pure, unadulterated Capitalism (that no country I know of actually utilizes) says, "All of the value created in production and distribution of goods and services comes from the capitalist/manufacturer - any contribution from the people actually making the products or performing the service is strictly minimal and there is no contribution, indirect or direct, from society as a whole in providing a safe, law-abiding and conducive environment for the practice of the capitalist's trade; accordingly, the lion's share of profits go to the capitalist, with little to the workers and little taxation. Additionally, poor people are evil - if they were more virtuous or enterprising then they wouldn't be poor but instead would be capitalists themselves - and those without jobs are even worse, lacking even the basic intelligence and morality required to be a cog in the corporate machine. As such, society as a whole, and the hard-working, self-sufficient Capitalist in particular, do not owe any kindness or sympathy to their workers or to the unemployed."
However, do not let this condemnation of free market Capitalism fool you into thinking I hate everything about Capitalism or that I love Communism - there are good things about Capitalism, such as the way it allowed people who were not of the appropriate social class, in terms of aristocratic bloodlines, a way out from under the heels of the upper crust. Unfortunately, they have now formed a new upper crust but at least career achievement is a somewhat more objective analysis of worth than who you were lucky or unlucky enough to be born to (although the latter undoubtedly can still be a big influence on the former). Plus, Capitalism does encourage innovation and new technologies/advances. Unfortunately, it also dilutes and modifies these things until they become tame and safe enough for mass consumption but the fact is that a great many of the things that we use today and that make like convenient for us are the result of the way in which Capitalism rewards those with new ideas.
There is also the matter of Communism - frankly, I find Communism, especially of the Soviet model, just as distasteful as pure Capitalism. Communism is very much the opposite of Capitalism - where Capitalism says that value is created by the Capitalist, Communism says it is created by the workers; where Capitalism says the profits legitimately belong to the Capitalist, Communism says that this and all things or "property" that exceed that owned by others is theft; where Capitalism says that the poor and destitute have arrived at that condition solely through their own uselessness, Communism says that they have reached that state solely due to the exploitation of others. It should begin to become apparent why I have a problem with both of these systems - both abstract from reality to a degree that begins to distort and twist how things really are. All economic models - all models, period - are abstractions to some degree because the universe, this planet even, is far too complicated for our brains to comprehend so we simplify things to the point that we can make some kind of conclusion without frying our brains like the wife of the man from one of Adams' Hitchhiker's novels, who is always nattering on about "having some perspective" and who winds up having her brain fried by a machine built by her husband that would simultaneously allow awareness and comprehension of everything in the universe at once.
There is such a thing as abstracting too much, though - we simplify so that we can understand something instead of being utterly lost, but should stop when we start ignoring things that clearly are real and important. Communism ignores the possibility of a person deserving to have extra "stuff" due to hard work and earning it. According to Communism, that is not possible unless you are knowingly or unknowingly exploiting other people and that's nonsense. People do work hard and do gather some of their money simply through doing a good job. If someone earns a bonus because he or she went above and beyond, that's not exploitation and that money has been earned. People like Bill Gates certainly weren't born to a crack-addicted mother in a slum somewhere, so that he had environmental advantages from the start, but you can't diminish the fact that his genius, intellect and hard work were driving factors behind the fact that he now has more money than God. Does exploitation occur? Absolutely. Do people tend to take for granted the direct and indirect benefits of living in a society of people rather than, oh say as a hermit in the middle of a swamp, when it comes to assessing whether they ought to pay taxes or "give back" to society? Definitely. But that doesn't mean that no one with "extra" or largesse deserves it - life is complicated and just as you can't say that the Capitalist creates all of the value and should get all the benefit, you also can't say that the workers create all of the value and the Capitalist deserves none of the benefit.
The production of economic value is a complicated process that both systems oversimplify - you have to look at it from both perspectives. Denying the value created by the workers is wrong, but so, too, is denying the value created by the economic expenditure of the capitalist who is investing large amounts of money and resources in his or her company. Additionally, although there are all kinds of factors - societal, cultural, economic - that affect people and that can cause them to be disadvantaged unfairly - and based on my economics work in college (my B.A. is in Econ) I would guess that the majority of people fall into this category - one cannot dismiss the fact that there are people out there that are not pulling their weight. Some people really aren't contributing as much as they could be and to assign them the same amount of value produced is equally invalid. You can't just take everything from everyone and give it to the government, as Soviet Communism does, and distribute it all equally to people. I strongly believe everyone deserves food, shelter, clothing and access to basic medical care, but the quality of those things is not something you can just assume should be the same for everyone. If I work my ass off and end up making $500,000 a year you had better believe I am going to be giving large amounts of that to charity and will pay taxes without complaint - but at the same time, if I want to use what's left to live in a huge house and drive a fancy, expensive car then I have the right to do that, too.
It is undeniable to me that the corporate elite in the U.S. has been misbehaving for a long time and in general they award themselves salaries that are completely out of line with the pay scales the rest of their companies have to follow. They freeze wage and salary increases for years at a time because of "economic issues" and yet they continue to make the same or more as they ever did. This IS clear exploitation and it is unjust and immoral and is not an example of working hard to get where you are but rather those on top taking another kick at those beneath them. But Communism says that property is theft, period - whether it is a Capitalist's or yours or mine, if we have more than someone else then we got it unfairly. It isn't just about whether big time corporate executives are to be trusted or how much actual work they really did and how much value did they really themselves create, it's about whether "regular people" like us get to have our hard work acknowledged and our ability to get extra things for ourselves legitimized, as well. It's also about innovation and choice - yeah, Capitalism often uses "choice" as a way to psychologically brainwash people into buying things - "buy our new Tundra XL 650 pickup truck and you will be a real man that doesn't back down and is super tough" - but the reality is that choice is important. We shouldn't all have to wear the same shoes and the same clothes etc etc - Capitalism innovates while Communism stagnates.
So....what is my final stance? Socialism. Although in the U.S. we see Socialism as being leftist because, in this country at least, Communism has been wiped off the map of public, economic discussion, leaving only Socialism and Capitalism, the reality is that Socialism is the moderate policy, in between the two poles on the right and left. It allows for private property and private ownership - and therefore the ability to work yourself up to higher levels of income - but also has a heavy public focus, with significant taxation and government programs because it recognizes that there are economic, social and cultural issues that derail the perfection of the market's operation that pure Capitalism wishes were achievable. Right now the U.S. is a blend of things and - were the government not so bloated and inorganically organized - I could see our arrangement as being pretty good. Unfortunately, the government grew not according to some plan but instead haphazardly and according to dozens of different plans - as a result there is redundancy, waste, red tape and unnecessary complexity everywhere. Were there an ability to simply streamline the organization of the government without necessarily cutting any funding, I think we would see enough money saved to make a legitimate merger of social and economic fairness possible.
But anyway, to summarize: some of the economic value created is due to the Capitalist and some to the workers; some of the profit belongs to the Capitalist, some to the workers and some to society; and lastly, though a great many people are disadvantaged not because of a lack of virtue but due to circumstance, there are also people who are where they are because of who they are and not because of the unfairness of the market and society. So, a no vote to both Capitalism and Communism and a yes vote for Socialism.
Adrian
