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The obvious failures of socialism around the world can be seen in Cuba, Eastern Europe, and China. Under socialism, incentives either play a minimal role or are ignored totally. A centrally planned economy without market prices or profits, where property is owned by the state, is a system without an effective incentive mechanism to direct economic activity. By failing to emphasize incentives, socialism is a theory inconsistent with human nature and is therefore doomed to fail. Socialism is based on the theory that incentives don't matter! In heaven, where everyone is perfect, incentives don't matter. On earth, we are imperfect. Therefore, capitalism is superior because of its three incentive-enhancing components: (1) prices determined by market forces, (2) a profit-and-loss system of accounting, and (3) private property rights. Corporate greed as well as government manipulation of these components make capitalism imperfect. However, people are not leaving for Venezuela, are they?
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Did you know that Haitians get routinely turned away when they try to travel to this county while Cubans are usually allowed to stay? That's because they are considered "economic refugees" rather than "political refugees" even though the conditions in Haiti are considered to be much worse than in Cuba. I used to live in South Florida where boatloads of Haitians used to periodically wash up on the shores. Nearly all of them were returned to Haiti. Many locals believe the true reason Haitians get returned is due to racism. Haitians are predominately black while the Cubans who try to migrate to the US are usually lighter skinned. You almost never see black Cubans even though roughly a fifth of the population is black. That's because they believe they won't be treated as well in the US due to their skin color.
Socialism isn't perfect but neither is capitalism. There are serious shortcomings with capitalism, especially in 3rd World countries where unbridled capitalism occurs. Unbridled capitalism creates a system where all the money and power is concentrated in the hands of a privileged few while nearly everybody else lives in poverty. There is virtually no middle class. The only way you can get rich in those countries is to inherit wealth, steal it, or marry into it. Otherwise, you have few or no opportunities to better your life, no matter how hard you work or how talented or well educated you are. |
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I do not agree with u , and also I do not agree that Cuba's economy has been successful,
But that's not right to assume capitalist society and mode of production , then, CetPar remove the , for example , private property . If the economic system is based on the exchange mode of production ,then you can not work it out without the capitalist system . |
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