RE: Social Security,

[Sanjeev Sabhlok <sabhlok@almaak.usc.edu>]

Dear Charu,

I must be really off my rockers, now, if at the end of 20 years of
studyinig economics and things like that, I mistake the US to be a
capitalist country. I am sorry, but the US is a socialist nation and the
USSR was a capitalist one. Pardon my error of definition. Must have been
sleeping when I wrote that one...

Poor Milton Friedman, when he wrote "Capitalism and Freedom" did not
realize that he was supposed to be defending the USSR, nor did Any Rand
when she wrote:"Capitalism: The Unknown Idea," and zillions of others, who
in school books all over the world, in journals and papers, mistake the US
to be a capitalist nation (what is "pure" capitalism, let us not debate
here) and China/ N.Korea to be socialist regimes.

According to you, one should have social security systems in China? A
nation where the state guarantees employment and care to everyone (in
theory)? What need can they possibly have of these safety nets when
everyone is taken care of on the basis of their needs?

While agreeing that some terms might have become meaningless due to
misinterpretation, I am of the view that capitalism is still the best term
to describe free market economies which are working hard to prevent the
pitfalls of free markets without killing free enterprise.

Socialism still remains the best term to describe centrally planned
economies where all resources are allocated centrally and everyone is paid
equally based on need and not on their marginal product.

But so long as you and I agree with where we are going (toward free
enterprise, social safety nets, high education, urbanization,
privatization, etc.), I can live with all interpretations of the word
capitalism or socialism and I would then say, let India be more socialist,
if you please! As that old man with a beard said, "What's in a name ? ..."

Well, back to business. Today I had this tremendous experience of another
of my old school friends (from Timpany School, Vizag) locating me over the
internet! What a way to make one's day!

Sanjeev

***************************************************************************

On Fri, 24 Apr 1998, Charudatt wrote:
> 
> 
>  Sanjeev Sabhlok[SMTP:sabhlok@almaak.usc.edu] wrote:
> >
> >The USA, by virtue of having a social security system, is a
> capitalistic
> >country, and not even remotely a socialistic country . . .
> 
> 
> This is the strangest definition of capitalism I have ever seen. Are
> things like unemployment insurance, food stamps, and federal disaster
> relief also affirmations of capitalism?
> 
> I am reminded of a rather perceptive quote by the depression era
> politician Huey Long "If communism ever comes to America it will be
> called Americanism".
> 
> If this is not a good argument for dropping the use of meaningless
> terminology such as "socialism" or "capitalism" I don't know what is.
> 
> -Charu
>