We observed decades of the cold war for the progression of two ideologies that were communism and capitalism. The latter one was being successfully embedded in the global systems in the 1990s and unipolarity emerged thereafter. It was the United States that wanted the world countries to embrace the capitalist model where each one of us takes home upon his own profit-making capacity.
This capacity building was quite vehemently achieved by the big players and they have become the corporate giants. For instance, the Coca-Cola Company makes itself the 84th largest economy in the world. This wouldn’t have been possible in Communism as the State owns each of the resources and stays responsible for the welfare of the people.
Both the economy models have their own pros and cons. But this debate has come to the table once again due to the recent economic recession that was greater than experienced in 2009 and effects rippled throughout had the impact greater than the Great Depression. The serious questions are raised to the capabilities of the government to address the welfare problems, or even attend to the basic needs of its people.
Why consider it as a failure?
Well, most of us won’t deem the capitalist model as a failure due to the fact that it has created the wealth creation opportunities for them. They won’t fall into the category where they don’t have access to the level playing field and are stripped off the opportunity to voice their concerns. We judge things from the surface level and what’s being perceived from far away, the reality stands a bit different.
The only concern for the socialist thinkers is the uplifting of people that fall below that poverty line and ensuring that they have access to all basic necessities in modern day. The capitalist model has failed to do so and it is commonly said that the rich are getting richer and the sufferings of the poor continue to exist.
Discussing the probable solutions to the problem
It was quite evident in recent times that each individual has to master the control of his own situational factors. The big entities and authorities are quite less capable and interested to some extent to address the problems of the masses. Also, we need to absorb the fact that the capitalist model and globalization process seems irreversible right now as it can lead to more devastation.
Individuals who have the capacity to think otherwise need to be aggressive action takers. Reliance on one sort of income is never a good idea. Also, the technology is shaping up new modes of economy too. Virtual economies where online trading occurs with different sorts of entities are quite on the rise and people are more than ever interested in bitcoin trades or exploring different options available through digitized trading platforms.
Also, an intermediary model can be established by the regulatory authorities where they leverage the mix of both capitalism and communism. There is no need to take away the idea of personal wealth creation as it keeps the people going, they can charge a bit proportion as tax based on the amount of wealth each one has. The taxes should be levied upon those only who hold a certain amount of assets to their name.
In this scenario, only the ones who are doing fairly well will be paying up the taxes. It can be channeled in the right way to uplift the people and work towards addressing the common problems of the masses. Still, there is a great deal of work and discussion that needs to be done before anyone can come up with any sort of global economy situation. Meanwhile, we hope that things turn in favorable for all and the situation returns to normalcy as early as possible with collective efforts.