Friday, December 05, 2008
Capitalism, Communism, and a Mixed Economy
What's the difference between capitalism, communism, and a mixed economy?
In capitalism, if a CEO like Roger Smith bets the company on a new technology and loses, losses are limited to the money invested by preexisting shareholders and creditors.
In communism, if a commissar bets the kolkhoz on a new type of whip and loses, every soviet citizen is on the hook for the losses until the next purge, when the commissar gets executed.
In a mixed economy, if a CEO like Roger Smith bets the company on a new technology and loses, every taxpayer is on the hook for the losses indefinitely.
In capitalism, if a CEO like Roger Smith bets the company on a new technology and loses, losses are limited to the money invested by preexisting shareholders and creditors.
In communism, if a commissar bets the kolkhoz on a new type of whip and loses, every soviet citizen is on the hook for the losses until the next purge, when the commissar gets executed.
In a mixed economy, if a CEO like Roger Smith bets the company on a new technology and loses, every taxpayer is on the hook for the losses indefinitely.
Labels:
capitalism,
writing
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment