Some ardent supporters of Socialism argue that it is a perfect tool for equal distribution of wealth. If it is properly implemented and followed, no one would be poor or reach. Everyone will be equally poor or equally rich! 

 

Typically, Socialism is defined as an economic system characterized by social ownership of the means of production and co-operative management of the economy. 

 

A Professor had an experiment where all grades were to be averaged and everyone would receive same grade. So no topper – no loser either. It was enthusiastically accepted by all for obvious reasons. 

 

After first test, grades were averaged, everyone got a B+. Students who studied hard were upset and the students who studied little were ecstatic. Before second test, students who studied little worked even less and who studied hard decided they wanted a free ride too so they studied little. Average was a D. No one was happy. Next the average dropped to F. 

 

Time goes by, instead of the scores, bickering, blame and name-calling increased. No one would study for the benefit of anyone else. Perfect Socialist class – is it not so? 

 

I am not to judge whether Socialism is good or bad but trying to share a perspective of Human Mind. It always asks – “what’s in it for me?” 

 

When the reward is great, the effort to succeed is great, but when one winner takes all the reward away, what’s the point for others in running that extra mile? Some insights which we must ponder; 

1. One cannot elevate the poor into prosperity by taking the wealth out of the prospered! 

2. When one receives anything without working for it, another one would have worked for it without receiving! 

3. Nobody can give anybody anything for free that has not been taken first from somebody else for free! 

4. One cannot multiply wealth by dividing it! 

5. There will always be a section of people who want to try less than others and get more than others in return. 

 

On the other hand – will there not be a tendency in human psychology to be successful and forge ahead of others – by hook or by CROOK? When reward seems to be so great that it elevates one from one’s current social strata, will that person not look for short cut and easy way to achieve the goal? Is individuality not a common human trait? Is an urge of becoming individual is not the germination of Capitalism? 

What is Capitalism? Capitalism is an economic system based on the private ownership of the means of production, with the creation of goods and services for profit. What is Profit? It is Value obtained less cost incurred. 

 

If a person has Capital and he wants to employ the service of a group of people to create something out of that capital to maximize it’s Value and thereby earn a profit, is there anything wrong? Can the group of people whose service is sought dictate the terms to the person whose Capital is employed? Can the group of people whose service is sought demand a share of the profit which the value addition to the Capital obtained? Seems so unfair. Is not it so? Yes, if one is a Capitalist and no if one belongs to the group of service providers. 

 

But what if in the whole exercise, the entity (person) takes undue advantage of any system or group of people? What is “Undue”? It is any non-acceptable social practice which takes advantage of current social condition of the service provider who works hard to finish a process which adds more value to the initial Capital. It is “Undue” if there is a conscious effort from the Capitalist to ensure that the Social strata of the service provider remains unchanged. 

 

There are good societies where there is a conscious effort to improve the quality of life of people, and the general satisfaction and sense of fairness is high amongst the entire social strata. There are bad societies where 90% of the wealth is accumulated with 1% of people through means of unfair actions where most of the people live in misery and general feeling amongst the mass is a concoction of mistrust, frustration, deceit and bitterness. 

Can any society be 100% Capitalist or 100% Socialist? It needs a right kind of balance. It is the member of the society who must determine the balance and rule of the game. 

 

As Martin Luther King Jr pointed out - “Communism forgets that life is individual. Capitalism forgets that life is social, and the kingdom of brotherhood is found neither in the thesis of communism nor the antithesis of capitalism but in a higher synthesis. It is found in a higher synthesis that combines the truths of both.”