Negotiation, Negotiation, Negotiation

UK Property Investment news and comments from Mark Harrison of YourPropertyExpert.com

The failure of capitalism vs. the failure of communism

Posted by markharrison on January 8, 2009

I heard a phone-in on the radio this week, in which the punter was basically saying that Capitalism had failed in the same way that Communism failed.

I was, to put it mildly, shocked by this claim.

In the current “failure of capitalism”, in the last twelve months, approximately 1 in 1,000 home-owners has defaulted on their mortgage, and in some cases had their homes repossed. In the vast majority of cases, the former home-owner has either found private rental accomodation, or been housed by the social sector.

In the “failure of communism” in the 1970s and 1980s, communist governments provided living conditions so poor that they had to erect machine gun towers and minefields to stop people fleeing.

Moving into a rented house vs. risking your life being machine-gunned in a minefield. Fair comparison????

8 Responses to “The failure of capitalism vs. the failure of communism”

  1. K2 said

    Unfortunately, this is the beginning of the failure , and it is not getting better. I don’t know which philosophy to cheer.

  2. Roderick Klein said

    Communism is great, that is on paper. So is the idea of capitalism.

    Communism tries to aim at the collective for mankind. To say that our democratic system is perfect, far from. Still way to much corruption and friendly deals behind close doors. Then again communism fails on thing certainly and that is that so far all Communist countries are basically dictatorships. If its Russia, Cuba, China say some real bad things about your government and you end up somewhere nasty or depending on how strict the country is the world will never hear of you again…

    A lot of European countries had something that I guess was called the third way. Still democratic system but a very strong government in terms of economic policy. For example in the Netherlands and France and a lot of European governments owned and regulated the health care, railways, education, public utilities mostly where owned by the government and whole lot more.

    Over the last 25 years we have seen this model being overhauled to more free market, competition, privatization, etc. And yes it makes you really wonder who is benefiting now ? In my view its not th middle class people or the poor people in third world countries. But more the people at the top of the economic chain.

    Especially with this banking crisis. Everybody wanted economic growth but that was more or less achieved spending money that was borrowed (credit cards and loans). Some people at the top of the economic chain should have been a lot smarter to know that in the United States and Europe we where basically making a financial bomb to go off. I guess thats what happened now with this crisis.

  3. Jeff Kauffelst said

    In my view the idea a Communism and Capitalism are both great when viewed academically. However, academics never takes into account the variable of human nature. In the Communist system to much of the political power is in the hands of two few and this leads to the temptation to control all aspects of the political system. On the other hand, as has been seen in resent months, in the Capitalist system to much of the economic power is in the hand s of a relatively few. And has been seen, greed is a vary powerful human flaw.
    There two sides of the same coin.

    There was a time were there was a middle ground and that is what we need to return to. If I could pick a time to live it would be the mid 1800’s where the measure of a man was weather or not he worked hard or not. Not when your worth is measured on weather or not your a profitable prospect for a bank loan or credit card.

    • sahafeen said

      What makes capitalism dangerous is that economic power inevitable tranlates into political power in a way that communisim is un able to. Today we have very few with political power and hence the world has no functioning democratic system.

      Communism failed not because it was flawed.. but…it cannot overcome the greedy nature as encouraged by the capitalist simply a case of good vs bad( the bad always wins in the short term), capitalism is an attack on humanity,

      • Sahafeen,

        If capitalism is an attack on humanity, can you, then explain why, under capitalism, life-spans, health, education, and fitness have all massively increased?

  4. DrTCH said

    Some of these folks are making a mistake. They are confusing everyday free enterprise with corporate (globalistic) capitalism. The former has made an important difference in the development of the USA, and in creating wealth. It is related to supply and demand, and a critial component of the system is competition. The latter despises competition, and is frequently not constrained by the usual rules, in light of “corporate welfare,” tax dodges, “gentlemens’ agreements,” and the like. It also has no allegiance to any particular country or people, and can often be linked to globalist hidden agendas, at variance with the welfare of our country, and behavior and policies which reflect “berseker” mentality. Things like never-ending war, phony “free-trade” agreements, and loans to countries which entail a very heavy price. I have no particular problems with neighborhood free enterprise, especially when tempered with “heart” and real concern for the nation, and for the community. I will have no truck with the corp. capitalist thugs, or the politicians who support them (people like Clinton, Bush and Obama).

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