When it comes to defining world largest economies China stands out as Communist and the US is perceived as the Capitalist. Capitalism defines the spirit of entrepreneurship where people are encouraged to be industrious and build organizations. However the American capitalism makes this definition a sham. American capitalism represents some evil design to concentrate wealth in the hands of a few affluent that keep getting wealthier.
The legal and financial obligation and enormity of setting up a business will often scare away anyone with entrepreneurship ambitions. Take a few examples of costs involved in setting up a small business
Gas Station – $250,000
Barber shop franchise - $60,000
Burger Joint - $ 200,000
Tutoring - $50,000
These are some of the examples of businesses one with limited education and a desperate individual would like to do – but he does not have the luxury of setting up such a business all he can do is serve in one of these business taking an hourly paid job. However in a developing nation like India a similar individual could start up his fast food joint or barber shop and earn all the rewards for his hard work and build his own business.
Moving to the higher strata of the society look at the most successful sports franchise the NFL. The NFL is highly successful as an entertainment organization but even more successful in filling up the coffers of the owners and the organization itself. The way the NFL works is it inducts players through a draft and deals with all the players as a whole at the organization level. This frees up the owners the hassle of negotiating contracts with individual players and thus having to pay exorbitantly. The players don’t have the choice of dealing with multiple teams to seek better opportunities until they become free agents. Even worse is the NCAA where each game may rake in upto$2m in tickets alone but the players don’t get anything more than the tuitions. – Now compare this to the Soccer leagues in Europe where players draw massive transfer fees and weekly salaries based on theirs skills and market value.
The examples are multitude …. Hence there is more to this blog…..
Interesting thoughts. What is ideal capitalism for you then?
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ReplyDeleteA bank is a financial institution that accepts deposits and channels those deposits into lending activities. Bank primarily provide financial services to customers while enriching investors. Government restrictions on financial activities by banks vary over time and location. Bank are important players in financial markets and offer services such as investment funds and loans. In some countries such as Germany, banks have historically owned major stakes in industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies. In Japan, banks are usually the nexus of a cross-share holding entity known as the keiretsu. In France, bancassurance is prevalent, as most banks offer insurance services (and now real estate services) to their clients.
The level of government regulation of the banking industry varies widely, with countries such as Iceland, having relatively light regulation of the banking sector, and countries such as China having a wide variety of regulations but no systematic process that can be followed typical of a communist system.[url=http://projectcontrol.v3host.nl]CLICK HERE[/url]
Sandi,
ReplyDeleteIdea of capitalism is individuals owning businesses and creating opportunities for themselves and others and reap rewards for self.
Now in America this is true in the sense if u have lot of money...
If the banking system is under government ownership it is due to their own fault and greed - one of the many facets of this dummy american capitalism
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