I was recently listening to some of my lectures about economics that i have on my Ipod and herd something very interesting. Joseph Shrumpeter an economist during the early twentieth century wrote that capitalism is ultimately doomed for this reason. That capitalism will give you 2 or 3% GDP growth rate and that over that next 50 years may be able to double the standard of living, the problem is that in a time of depression people don't care what is going to happen in fifty years. The more a society wants things now the more they will tend to shift away from the long run.
I am not saying that i ager or disagree with Joseph. I want to know what you think and why? is capitalism doomed?
Well, I personally haven't read Shrumpeter but I can offer what I believe about Capitalism.
ReplyDeleteI believe Capitalism is the best economic system Man has created. Period. Just look at history. But it doesn't work if the Society containing Capitalism isn't a Just Society and a society that has strong morals and values grounded in the Word of God. Isaac, you've already discussed with me at length about this and I totally agree with you.
The only problem I have with Capitalism is that it leads to Materialsim. I myself am guilty of this. So the solution is simple, but not a quick one: We need to be on our knees in prayer/return to God, we need to limit gov't, and we need to return to what the Founding Fathers wanted for this country. And no, the Constitution (etc.) is not an "antique document" -- it is still useful for today!
Capitalism would totally work—if we would try it. The question is will we try it. (we meaning america) Like Joseph Shrumpeter said, people don't care that much about the long run. I don't believe it would take 50 years after the implementation of capitalism to see change, but some people would see short term loss if we were to take a capitalistic approach. This would happen because the current economic system has been built on non-capitalism. I don't like to say it but we aren't exactly a capitalist society anymore. The capitalist system is being increasing rejected in the USA. So, to answer your question, at the rate we are going now, I don't think capitalism will make it. I don't want to be a pessimist but if you would give me a million dollars if I guessed right that's what I would guess. I must say this though: my guess is based on the current direction of though in the country. It would take a lot to change that direction, but it can still be done.
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