We need to change our society due to these problems with Capitalism:
1. One of the biggest problems with capitalism is that, because control of the means of producing economic goods in a society resides in the hands of those who invest their capital for production, capital (The money or wealth needed to produce goods and services) has to accumulate before a nation becomes prosperous. This process could take years or even decades before capital has accumulated to an extent to where the masses can harness this capital.
2. Another problematic situation with capitalism: corporations are ruled by individual managers, who take part of the money of the workers, therefore exploiting the workers.
You Might say that the manager is working harder than everyone else, but who's producing the products of the masses' everyday consumption? It's the worker, or, more known as, the proletariat.
3. Since Capitalism is an economic theory which stresses that control of the means of producing economic goods in a society should reside in the hands of those who invest the capital for production, & private ownership, this concentrates the means of production to rich people. What results is a modern form of Feudalism, since the means of production is concentrated to a small segment of society.
4. This is the worst problem with Capitalism:Since power is concentrated to an individual in a company, The person becomes corrupt.
In what way does a manager/CEO, become corrupt?
Lord Acton once said, "Power tends to corrupt, and absolute power corrupts absolutely". This principle not only exists in the political world; it also exists in the economic & social world.
A manager/CEO is the one who benifits the most out of a company, because, when the people buy a manager/CEO's products, this goes to his/her account. Because of all the money a manager/CEO rakes in,
PROFIT BECOMES THE ONLY MOTIVE IN BUSINESS DECISIONS. This leads us as a species to do some very odd things. Here's an example: let's just say that humans developed the technology to totally wipe out the AIDS plague. However, we refuse to use it, because our capitalist mentality insists that every person taking a medication must pay equally for it. It does not matter that the cost would be trivial to produce the medication to wipe out the plague now that the difficult work of developing the drugs has been done. Further, we don't wipe out AIDS because that would be unprofitable. Maximum profit demands keeping the virus around infecting new customers. And finally we don't wipe out AIDS because we don't have a way of allocating costs of projects that benefit every world citizen. We have spent about 4 billion on researching new AIDS treatments but only 0.1 billion on finding a vaccine to prevent new infections.
Other examples of profit becoming the only motive in business decisions can be the McLibel case (look it up on wikipedia).
I think that the best way is socialism, because it utilizes workers' councils &, for an economy to become larger, socialism utilizes accumulated labor, not accumulated capital.
The problem with capitalism is that in order to accumulate capital you need to have capital in the first place. It's a big poverty trap!
I couldn't agree more; under socialism, all a nation needs to do is accumulate labor, since Socialism stresses that the control of the means of producing economic goods in a society should reside in the hands of those who invest their labor for production.
I could see hard work + education.
Yes; education is extremely important for business, since alot of jobs require knowledge.
