CAPITALISM VERSUS SOCIALISM: REFERENCE GUIDE

BRYCE ON POLITICS

- What every young person should know.

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REFERENCE GUIDE

	CAPITALISM	SOCIALISM
WHAT IS IT?	Socioeconomic system based on PRIVATE ownership of the means of production and operates for PROFIT. Encourages independence and the rights of the INDIVIDUAL over the group. The individual is allowed to try any endeavor, including the development, marketing and support of products and services for public consumption. The individual is allowed to keep and enjoy the fruits of his/her labors.	Socioeconomic system based on STATE ownership of the means of production; not driven by profit. Encourages state dependency and the rights of the GROUP over the individual. The state dictates what products and services are to be developed, and who shall produce them. Each person works for the state, not individually, and receives compensation in the form of shared wealth and free services. A pseudo-Utopia.
ECONOMY	Free economy; based on private buyers and sellers. Competition flourishes and causes natural evolution of products and services through market demand (akin to Darwin's "Natural Selection"). Consumers free to choose the products and services they want.	Economy is controlled by the state; little, if any, competition. Buyer has fewer choices to make.
CLASS STRUCTURE	3 levels - Upper/Middle/Lower classes. Middle class powers economy through purchasing power.	2 levels - State/Worker classes (aka, "Master/Slave"). No middle class, no economic engine, a redistribution of the wealth. Workers become wards of the state.
THE INDIVIDUAL	Independence encourages personal initiative and work ethic. More earning power, but individual assumes risk. Enjoys protection of Intellectual Property, e.g., patents, copyrights, trade secrets, etc. Employment will experience ups and downs due to economic conditions.	Discourages personal initiative ("everyone wins"). No Super Rich. Compensation is evenly distributed among workers. Earning power is limited. Individual assumes no risk. Intellectual Property is owned by the state, not individual. Employment is guaranteed.
EFFECT ON GOVERNMENT	Personal independence requires freedom and equal rights in order to function. Requires less bureaucracy, smaller government. Flourishes under a Republic with democratically elected representatives.	Creates dependency on state; Requires more bureaucracy (larger government) through regulation as the state controls everything, including food, education, housing, communications, health care, energy, transportation, etc. Hinders rights and loss of liberty. Encourages autocratic rule. Less freedom.

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Keep the Faith!

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Tim Bryce is a writer and the Managing Director of M&JB Investment Company (M&JB) of Palm Harbor, Florida and has over 40 years of experience in the management consulting field. He can be reached at timb1557@gmail.com

For Tim's columns, see:   timbryce.com

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Copyright © 2019 by Tim Bryce. All rights reserved.

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THE MYTH OF EQUAL PAY

BRYCE ON CAPITALISM

- In capitalism, there is no such thing; it's what the market bears.

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The president has seized upon the concept of "equal pay," not so much from a gender equality perspective, but taking umbrage with CEO's of big businesses making millions, while others struggle with minimum wage. Translation: the distribution of wealth. There is no doubt we are witnessing some rather obnoxious economics today, particularly by athletes, entertainers, the media, CEO's and politicians. For example, I never understood how a backup catcher in baseball, who does nothing more than warm-up relief pitchers, can earn a million dollars. Nor do I understand why people pay exorbitant ticket prices for sporting events, particularly at the Super Bowl where it costs as much as $2,400 for the worst seat in the house. Then there is the matter of paying over $4M for a 30 second ad during the Super Bowl.

Although I find it disturbing people willfully pay for such obnoxious economics, I am fully aware of the concept involved, which is "capitalism" representing what the market will bear.

On a recent Fox News segment, I heard liberal commentator Bob Beckel champion the concept of "equal pay," that CEOs should not be paid bloated salaries while the workers are paid much less. Beckle balked at suggesting a salary cap for executives, probably because he is reported to have a personal net worth of $10M. Naturally, this would preclude him from asking for more money for his media appearances and columns (see "hypocrisy"). In other words, he has no means for setting the bar as to what would be fair and equitable.

We may be born equal, but what we do with our lives is ultimately up to the individual. Some may become inventors, pioneers, writers, craftsmen, and captains of industry; others will become thugs and wards of the state, blaming their woes on others as opposed to assuming responsibility. Some people will succeed, some will fail, all of which is referred to as "natural selection" a la Charles Darwin. For example:

* If the minimum wage is raised, and jobs disappear, it is "natural selection" within the free market.

* If athletes and entertainers keep raising their salaries, and ticket sales fall off, it is "natural selection" within the free market.

* If the price of a product is raised to the point where people stop buying it, it too is "natural selection."

"Natural selection" is capitalism in action.

Socialism is "unnatural selection" and the antithesis of capitalism. For example:

* If money is taxed from the rich and given to the poor, the rich will be less likely to invest in undertakings that will produce jobs and stimulate the economy.

* Likewise, if government bureaucracy inhibits companies with stifling rules and regulations, it too will have adverse effects on jobs and the economy.

* If prices are defined by the government and not the market, it is "unnatural selection."

The concept of a "free market" is a capitalist concept, not socialist. It means the market can behave unfettered from artificial restraints as imposed by government. To make it work though, you must assume responsibility for your actions and understand the prospect of risk. The same people who endorse equal pay, are the same who refuse to assume responsibility and risk. They want it all without having to earn it which, of course, is socialism.

If you are concerned about obnoxious economics, as I am, please be mindful that every time you order expensive tickets or merchandise, or purchase $10 hot dogs and beers, you are endorsing capitalism. If the market fails to bear idiotic prices, they will inevitably go down, naturally.

Keep the Faith!

Note: All trademarks both marked and unmarked belong to their respective companies.

Tim Bryce is a writer and the Managing Director of M&JB Investment Company (M&JB) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com

For Tim's columns, see:   timbryce.com

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Copyright © 2014 by Tim Bryce. All rights reserved.

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  - Do they truly support project management or are they glorified punch clocks?

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WHY WE NEED A MIDDLE CLASS

Do people truly understand the power of the middle class? I think they're starting to overseas. We may not have invented the concept of a middle class, but we sure perfected it, and everyone wants to emulate it. Since the fall of the Soviet Union, countries around the world have been reconfiguring their economic policies in order to remain competitive in a global economy. In case you haven't been paying attention, new middle classes have slowly emerged in such places as China, Belarus, Brazil, Russia, Vietnam, and amongst South African blacks. People in these countries now have spending power thereby causing a demand for products and services, not to mention a call for construction of new houses and businesses.

The rise of middle classes around the world is significant as it is a recognition that capitalism works as opposed to socialism or communism. A sizable middle class represents an economic engine for a country. Capitalism encourages people to work and to invest and spend their money and allows a country to collectively compete. The average person wants nothing more than to earn a respectable livelihood, so they can enjoy life and raise a family unencumbered by overbearing government regulations. As President Calvin Coolidge observed, "After all, the chief business of the American people is business. They are profoundly concerned with producing, buying, selling, investing and prospering in the world. I am strongly of the opinion that the great majority of people will always find these the moving impulses of our life."

In order for capitalism to work, you need to be allowed to have certain freedoms, such as the freedom of expression, the freedom to innovate and invent, the freedom to choose your own path, the freedom to conduct legitimate business, etc. This is why it is rather ironic how some of our former communist foes are now embracing capitalism.

In the absence of a middle class, you have just the rich and the poor (the "have's" and the "have not's") which lends itself to being a feudal state controlled by dictators or monarchies. Such a state does not operate harmoniously, corruption is rampant, and unrest is common. The "have not's", which is a sizable majority, have little to earn and spend. Consequently, the economy sputters and stagnates which our communist friends discovered the hard way.

As mentioned, in order for capitalism to work, certain freedoms have to be permitted to allow a person to work, earn, and save their money, not to have it redistributed to others by government decree. This means there is an explicit relationship between freedom and capitalism. Implicitly, it means capitalism requires a certain amount of democracy to allow the citizens to participate in how the government runs, which means capitalism cannot work under a dictatorship (see Cuba, Iran, North Korea, et al). As an aside, it is the middle class who elects government officials, not the upper or lower classes. The upper class may support politicians economically. but it is the middle class that casts the votes.

When someone asks me about my political leanings, I tell them I am an unabashed capitalist. This of course means I believe in liberty, and the right of the individual to lead a meaningful life, and I abhor any attempt by government to alter this or forcibly redistribute the wealth earned by the individual. I can understand government monitoring the legality of someone's occupation, but aside from this they should not hinder a person's right to earn a living.

Capitalism is our greatest export. It represents the seeds of freedom and economic prosperity. If it spreads, it could lead to world stability and peace which, of course, certain tyrants and crackpots openly reject. For example, Iraq will be an interesting experiment in capitalism. If Iraq succeeds, freedom and democracy will succeed, which is why Middle Eastern terrorists desperately want to see it fail as it represents a challenge to their authority. It's not so much about religion as it is about control. Capitalism is a genuine threat to feudalism, a system which has no regards for the rights of the human-being and respect for the human spirit. Make no mistake, feudalism is barbaric.

To summarize:

1. In order to effectively compete in a world economy, you need capitalism.

2. In order for capitalism to flourish, you need freedom and democracy.

3. A byproduct of capitalism is a sizable middle class with spending power.

4. Therefore, any attempt to change capitalism is a threat to freedom, democracy, and the middle class.

No, I am not a proponent of government sponsored bailouts, stimulus packages or the creation of artificial jobs. Such devices does capitalism a disservice and is unnatural. It is not government's role to tamper with capitalism, only to establish the environment for capitalism to flourish, namely assuring freedom and democracy, serving its constituents, and providing incentives to encourage new avenues of business.

Yes, the failing financial companies and automotive manufacturers should have been closed. They were corrupt, made bad decisions based on greed and stupidity, and do not deserve any sympathy for their plight. If they had been allowed to fail, new institutions would have surely been created to replace them which would have been leaner, stronger and smarter. It's called "evolution." By bringing back our right to fail, you assure our right to succeed.

Keep the Faith!

Note: All trademarks both marked and unmarked belong to their respective companies.

Tim Bryce is a writer and the Managing Director of M. Bryce & Associates (MBA) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com

For Tim's columns, see:
http://www.phmainstreet.com/timbryce.htm

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Copyright © 2010 by Tim Bryce. All rights reserved.

A NEW AMERICAN CIVIL WAR

Make no mistake, the country is in the midst of powerful class struggle between the "haves" and "have nots," a struggle between capitalism and socialism, bordering on a bona fide Civil War. Actually, it began with the hotly contested 2000 presidential election and escalated with the election of our current president with a liberal agenda. The seeds were planted during the Clinton impeachment hearings where politicians voted along political lines. Since then, there is a no-holds-barred approach to politics in this country, and the viciousness of the rhetoric has become dangerously reckless.

Since 2000 when the Democrats accused the Republicans of stealing the election, the tactic has been to attack unmercifully, attack to discredit, and attack until you get your way, then, deny any wrongdoing, and blame others. If you pose the slightest threat to the party's political agenda, you are vilified as was the case recently with Rush Limbaugh. To discredit the outgoing president and assure there would not be a political legacy, they attacked and ridiculed George W. Bush to the point of riding him out of town on a rail (by his own party no less). In other words, liberal politics have taken on a "take no prisoners" approach, the likes of which we have not seen since the Watergate hearings.

There is little, if any, bipartisanship in the drafting of laws and running the government. The administration has basically thrown its weight into its liberal agenda, while trying to paint Republican lawmakers as impediments to change by questioning their patriotism. Now, more than ever, a line has been drawn in the sand between liberal and conservative principles, and there is no true initiative to seek common ground. After all, why should there be if you control both houses of Congress and the White House?

To paraphrase Lincoln, "Now we are engaged in a great civil war, testing whether that nation, or any nation so conceived and so dedicated, can long endure." The question now has become, is capitalism wrong and should it be replaced by socialism? I contend capitalism is correct and socialism sets a dangerous course of destruction for this country. The differences between the two ideologues are significant and incompatible, yet this is what now faces the country. Yes, we are very much involved with a titanic class struggle in this country. And Yes, aside from armed conflict, it has all of the earmarks of a Civil War.

In the years preceding the first American Civil War, Congress was embroiled in a similar clash of ideologues, this time is was bitterly divided over the spread of slavery into the Western states. The Missouri Compromise and subsequent Kansas-Nebraska Act of 1854, for example, pitted the North versus the South in who would control the Congress. The discourse between the two camps ultimately caused political parties to collapse and new ones to emerge, such as the Republican Party. The Democratic Party was split along sectional lines as a result of the conflict.

It occurs to me that today's political differences may also shake the current parties to their very foundations. They will either change or split. Whereas the Republican Party had been moving towards the middle since the departure of Ronald Reagan, it is now moving rapidly back to conservative principles. The Democrats with their liberal agenda has basically forsaken moderates. Both parties have to shore up their differences internally or face a new third party to emerge, a moderate party.

The Republicans have become complacent, and put on the defensive by some clever political maneuvering by the Democrats and, as such, have been politically reactive, not proactive. This needs to change and an organized approach must be devised to draw up battle plans and devise tactics. Some suggestions:

1. Take the Media to task, which is nothing more than the mouthpiece of the Liberal Party; put them on the defensive; this includes television, radio, newspapers, the Internet. I mean really put on a full court press. Condemn their editorials, refuse to support their advertisers, and discredit their integrity by debunking the illusion they are "unbiased." Do not allow them to vilify conservative leaders like they did to Dan Quayle, Sarah Palin, and Rush Limbaugh. Their brainwashing techniques must be broken.

2. Challenge the Liberal Party, anywhere and anytime. I do not know an issue where we need to be on the defensive; we must go on the offensive. However, to contrast Conservatives from Liberals, we must do it with dignity, and tact. Unlike our opposition, we believe in honest debate. We should never stoop to their level of name calling, venom and lying. We must be forthright in our arguments and do it with class.

3. Groom replacements to take over. Ronald Reagan was a great president and we now hear his name mentioned as the savior of the party. But let's be realistic, Reagan is dead and buried, let's move along, I'm sure he would want us to move forward and not look back. To this end, I suggest establishing a bona fide school to teach conservative doctrine, and hone skills in communications, management, administration, drafting legislation, and political tactics. In other words, instead of a disorganized approach for grooming the future leaders of our country, let's devise a structured approach which promotes good government based on sound management principles. The nation needs leaders, not reactionaries.

4. Develop a sound political strategy that provides for a strong war chest to fund political campaigns, devise Congressional target areas, and take back the Congress and the White House.

It is sad to think we are at war with our own countrymen, but the fact remains there are people who are bent on changing the basic way of life in this country, such as redistributing the wealth through expanded government. They have already fired the first shot, are well organized, and now in control. It is time for Conservatives to wake up and get its act together before the changes implemented by the Liberals become irreversible.

Keep the Faith!

Note: All trademarks both marked and unmarked belong to their respective companies.

Tim Bryce is the Managing Director of M. Bryce & Associates (MBA) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com

For Tim's columns, see:
http://www.phmainstreet.com/timbryce.htm

Copyright © 2010 by Tim Bryce. All rights reserved.