I started researching Socialism by looking at Socialism from the view point of Capital Producing Socialism and Capital Destroying Socialism. Capital Producing Socialist Systems are political-economic systems that create money, value, energy, wealth, capital and power in an organization, society, nation and mankind. Capital Destroying Socialist Systems are political-economic systems that destroy money, value, energy, wealth, capital and power in an organization, society, nation and mankind.
As I looked into Socialism it was discovered that there are six types of Socialism. These six types of Socialism fall under either Capital Producing Socialist Systems or Capital Destroying Socialist Systems.
Socialism is: a political and economic theory of social organization that advocates that the means of production, distribution and exchange should be owned or regulated by the community as a whole. (New Oxford American Dictionary)
Capital Producing Socialism is a Socialist system, in which the Producers of commodities, trades, goods and services are rewarded, in full, for the production of these commodities, trades, goods and services. Money, value, energy, wealth, capital and power are created or generated in these types of Socialism.
Examples of Capital Producing Socialism are; Education, Social Security, Military (for defense only,) Policing Services, Fire Services, Roads, Mass Transportation Systems, Water Treatment and distribution systems, Sewage Treatment Systems, Judicial Systems, Government systems, some Medical Systems, Co-operatives and Employee owned Enterprises.
As a note, the Medical Systems in the US today are legislated Socialist Systems. They have been legislated into existence through a legislated monopoly. This has been done by passing Anti-Quackery laws. The laws exclude all but a certain specific type of healing technology to be practiced while healing people. All other forms of valid healing Technologies have been banned.
All Monopolies are really Socialist Systems. They are all legislated into existence by government, either intentionally or unintentionally. When a Government allows a monopoly to exist without officially legislating it into existence it has given it consent to exist by doing nothing to break it up. The Government has given a monopoly the consent to exist by not taking policing action or legislative action to break it up. Governments give monopoly consent, to a company or group to be a monopoly, by not doing anything to correct the monopoly condition. Monopolies fall into the Capital Destroying Socialist System of economics. They tend to drive off or kill all production competition. This causes higher prices for their commodities, trades, goods and services because they can control the supply. Non-production and counter-production are rewarded here.
Capital Destroying Socialism is a Socialist system in which the non-producers and counter-producers are rewarded for no production or for destructive activities. Money, value, energy, wealth, capital and power are destroyed in these types of Socialism. The non-producers drain or suck the money, value, energy, wealth, capital and power out of the Economic System. The counter-producers use the money, value, energy, wealth, capital and power to create activities that destroy the organizations, societies, nations, mankind and environments.
Examples of Capital Destroying Socialism are; Corporate Welfare (Subsidies), Agricultural Welfare (Subsidies), excessive Military, excessive Policing, Monopolies, Government regulations of the Market beyond keeping the Market open to all on equal terms, Government regulations of the Economic system beyond the Axioms of Economics; allowing corporations to have the same rights as people, government insurance for the banking industry, government insurance for the nuclear industry, capitalizing the profits and socializing the losses for industry. In “capitalizing the profits and socializing the losses,” industry receives the financial profits they make and the government covers the financial losses the industry suffers.
Six Types of Socialism
1. Socialism can be a theory or system of the ownership and operation of the means of production and distribution by society or the community rather than by private individuals, with all members of society or the community sharing in the work and the products. (Webster’s New Twentieth Century Dictionary unabridged)
2. Socialism can be a community of individuals working together during the process of creating prosperity through production.
3. Socialism also is the government or a community owning and controlling the production organizations.
4. Socialism also is the Government controlling the Market. This usually tends toward Capital Destroying Socialism. This is Governments controlling the Market directly or through monopolies. Monopolies are an example of government allowing a market to be controlled. Here the government is indirectly controlling the market by not maintaining it open to all on equal terms. It is controlling the Market covertly. This covert control is done by the Government by allowing monopolies to control the Market.
5. Socialism also is government regulations placed on the economic system beyond the Axioms of Economics. The only laws that should be placed on the economic system are the Axioms of Economics. Reward the Producers and only the Producers, maintain the Market as and Open Market (open to all on equal terms) and maintain a constant money supply are the basic laws of Economics.
6. Socialism also is any Government financed programs directed and controlled by a Government. These are all the programs legislated into existence by any and all Governments. Some of these programs are Capital Producing Socialist programs and some are Capital Destroying Socialist programs.
Socialism; is a political and economic theory of social organization that advocates that the means of production, distribution and exchange should be owned or regulated by the community as a whole. ■ is policy or practice based on this theory. ■ (in Marxist theory) is a transitional social state between the overthrow of capitalism and the realization of communism. (New Oxford American Dictionary)
The term socialism has been used to describe positions as far apart as anarchism, Soviet state communism, and social democracy; however, it necessarily implies an opposition to the untrammeled workings of the economic market. The socialist parties that have arisen in most European countries from the late 19th century have generally tended toward social democracy. (New Oxford American Dictionary)
The following is taken from the Webster’s New Twentieth Century Dictionary unabridged.
Socialism: The theory or system of the ownership and operation of the means of production and distribution by society or the community rather than by private individuals, with all members of society or the community sharing in the work and the products.
In communist doctrine, the stage of coming between the capitalist stage and communist stage, in which private ownership of the means of production and distribution has been eliminated.
The communist doctrine stage of socialism implies a natural evolution taking place. This definition implies that capitalism, somehow through the action of nature, will evolve into socialism and socialism will evolve into communism. This is taking a viewpoint of mankind being the effect of some natural unexplained forces in economics. The implication is made that nothing can be done about economic conditions because of these natural unexplained forces. The economic conditions “just happen” and we are the total effect of them.
This type of economic view works very well for the counter-producer. The counter-producer can blame the bad economic conditions he creates on some natural unexplained forces. Recessions and depressions “just happen.” All the while the counter-producer continues to destroy the economic system and Markets by redistributing and concentrating huge amounts of money, value, energy, wealth, capital and power into his hands.
The application of Communist technology, where private ownership has been eliminated, has proven to us that this system is a failure. The evolution, by some unexplained forces in nature, of capitalism into socialism and socialism into communism has never happened and is very, very unlikely to happen in the future. It won’t happen through some unexplained force in nature. An evolution can happen through counter-producer activities. Someone can cause it to happen. To say it will happen or has happened through some unexplained forces in nature is not being responsible.
When communism was set up in various countries over the past 100 years, this was not some evolution carried out by some unexplained forces in nature. It was carried out by a group of counter-producers taking advantage of the economic destruction caused by another group of counter-producers, the capital destroying capitalists. Of course history has proven to us that communism has failed. It failed because, like the capital destroying capitalists, they redistributed huge amounts of money, value, energy, wealth, capital and power away from the Producers and concentrated it into the hands of those counter-producers in power.
Producer Rewarded Open Market Economics (Capital Producing Economics) is a cause based economic system. It is a system of economics where Producers cause the creation of all commodities, trades, goods and services. This is a system where the Producers, with intention and direction, create all the money, value, energy, wealth, capital and power through the production of commodities, trades, goods and services.
There are no unexplained forces in economics today. The forces behind the “invisible hand concept” have been discovered. Adam Smith uses the invisible hand to describe the self-regulating behavior of the Market-place. I will cover the “invisible hand concept” more fully in a later article. This invisible hand concept comes from Adam Smith the author of The Wealth of Nations. It is incredible that in 1776, Adam Smith has the basic of economics in full grasp. He said. “the wealth of a nation” comes from labor. That concept is found in the first Axiom of Economics: All money is created through and backed by the production of goods and services. All production employs labor and work.
Social; of or having to do with human beings living together as a group in a situation requiring that they have dealings with one another; as, social consciousness, social reform, social problems.
There will be several more posts following this post on Socialism. Researching this area of economics was quit an adventure. Some discoveries made in the area of Socialism were surprising.
Producer Rewarded Open Market Economics
The Science of Economics
By: R P Obrigewitsch