Ok, so I overheard a conversation the other day in which one individual asserted that "capitalism is the only economic system that has ever lifted people out of poverty." Since it was neither the time nor place to get into a major argument, I kept my mouth shut, ignored the one-sided conversation (monologue?), and got out of the area fairly quickly.
But, I've been thinking about the assertion for a couple days now.
As usual, the assertion has a point, but leaves out extremely important information, as follows:
1) The last "pure capitalist" society in history was the U.S. of the pre-Great Depression era (roughly 1800-1920). During that era, the lion's share of the country's money and resources were under the control of a handful of families (the Rockefellers, Vanderbilts, Fords, etc.). The rest of the population was not exactly well off or even really middle-class by modern standards (for good fictional accounts in the U.S. and Britain, see Theodore Dreiser and Charles Dickens respectively). Likewise, because of "pure capitalism" the country (and the rest of the western world) was exceptionally vulnerable to economic collapse, e.g. the Great Depression.
2) Capitalism began truly bringing people out of poverty and making life better for the majority of people when it was coupled with socialism during the New Deal era. These socialist-capitalist programs brought us free fire departments (versus the companies that previously existed), free public libraries, free public education (grades one through twelve), laid the foundation for state universities, and created Medicare, Medicaid, and Social Security. WPA projects during this socialist-capitalist era also created jobs as well as the interstate highway system. Most conservatives in the U.S. take a lot of these things for granted and forget that they were a) created by liberals and b) are the product of socialism.
3) Today, like the entirety of the western world, the U.S. has a hybridized socialist-capitalist economic system. This hybridization is simultaneously what helps bring people out of poverty and kept the recent economic problems in the recession level rather than becoming a full blown depression. In fact, no country operates under a "pure" economic system of any sort, all are hybridized. And this is a good thing. As with animal and plant breeding, we've found that hybridization creates hardier and stronger livestock and harvests. Likewise, hybridized economic systems create more hardy and robust economies.
Just some thoughts. Seeing as I have only a minimal background in economics (and even that focuses on the medieval period), I could be way off in some respects, but the theory seems to hold up pretty well.
CAT PHYSICS
2 hours ago