I saw Clyde Prestowitz interviewed on PBS today about his book and capitalism.

What I didn't hear was a solution to the current way that wealth is being redistributed among the peoples of the world. He hinted at it with a recognition that the solution is international.

But we have to obey international law to do that.

So just what IS the "international law on redistribution of wealth?" I doubt if there is any, since the vast majority of nations have wisely abandoned Commu-Socialism and opted for Capitalism, which is the only economic system that really works, no pun intended.

The "vast majority of nations" never adopted "Commu-Socialism"--whatever the hell that is--in the first place. One of the most successful ones in the world unfortunately still has a political form of Communism in place (China), while another has shed its socialist trappings at the federal level, but maintained it at the state level in some cases (India). The most prosperous nations in terms of GDP or total economic wealth outside of the US have various forms of social welfare and redistribution systems in place (the Benelux countries, Sweden, Norway, UK, Canada, Germany, Japan, France, Italy, Spain, etc.). Almost no country permits a total free-market system to govern its internal and external economic system, not even the US (just think of W's subsidies to the agriculture industry, or the oil industry, or....) On top of which, the EU practices economic redistribution, which has lifted Portugal, Ireland, Greece, and increasingly the Czech Republic and Poland out of the economic mire.

Most nations on earth are engaged in various forms of statist and quasi-capitalist economics, with various forms of economically protective measures and barriers in place by law. Across the Americas, Africa, the Middle East and Asia, one could point to many nations that are not capitalist, at least as most economists commonly understand the term, though capitalism functions at various levels, along with various forms of statism and other economic models, in them.

[ August 16, 2005, 11:47 AM: Message edited by: fantomas ]

Fine, FT, now explain just what this "international law on redistribution of wealth" is, other than the natural economic laws that flow from the operation of trade and markets.

Where did you ever get that ridiculous idea?

There have been many other economic systems that 'really work' in many societies. Further, the face of 'Capitalism' is constantly changing and evolving.

No country in the world, including the US, practices completely free market capitalism. Doubt me? Look at the huge corporate tax breaks and incentives given out by every level of government in the US. Look at the hundreds of billions the US government uses to subsidize certain industries.

In fact, most countries in the world today do practice some form of socialized economics.

The US government actually does little beside regulate corporations, the economy, and trade. Under some administration, like the current one, the government just happens to be run by proponents of those unchecked corporations. The pendulum will eventually swing back after some huge disaster, and the government will adapt and become more regulatory on behalf of the people.

Communism was not tried, and failed. Communism was tried and found difficult. The Soviet Union had one of the most beautiful Constitutions on the face of the earth. It was far ahead of it's time in guaranteeing huge amounts of personal freedom to its citizens. Unfotunately the Constitution was ignored almost from the time it was written by leaders hungry for power, beholden to power blocks, and indifferent to the people. At no time in the history of the Soviet Union was an communist economic system fully implemented. A totalitarian one yes, a communist one - no.

I am definately NOT an advocate of communism. However many people, including you apparently, seem to confuse political systems with economic systems.

It is far, far too early yet to tell wether our own political or economic system will stand the test of time. 'Modern Capitalism' has existed for less than a hundred and fifty years. Historically we have been onstage for but the blink of an eye.

Who knows? Future generations in 200 years may look back at us as a quaint bunch of misguided children, in horror at the incredible inhumanity of our society, or as the saviors of all mankind.

Only time and future generations will judge. Generally neither have been entirely kind to those arrogant enough to assume/believe that they were the masters of the world.

Rob

Exactly Rob....our economic systems are (hopefully) always evolving into something better. The people who cling to capitalism as the end-all system scare me. Whether it be feudalism, mercantilism, communism, or captialism, each was just a preferred system at one snapshot in time and there's absolutely no need to say "such-and-such system is the best one". Instead, we should be looking to the future and searching for what the next "better" system should be.

Have a look at Gunther Grass' "High Price of Freedom" - it has much to say about capitalism:

http://books.guardian.co.uk/review/story/0...1477276,00.html

Nat

I understand your confusion gmginsfo but you jumped too quickly to a conclusion that I did not intend. I did not mean to imply that there was an international law that would cause the redistribution of wealth, but that only by recognizing international legal bodies can we hope to create an international economic system that will reward labor that produces goods and services in a manner that will prevent instability and eventually military conflict in the future.

In the PBS program that I mention Mr. Prestowitz also mentions the immense national USA debt held by China and other foreign entities. I believe he mentioned something like 80% of that debt currently being owed overseas, and it is expected to rise to 100% eventually, causing unclear, but almost certainly negative, consequences for international commerce and stability.

He also metioned that some of the most savvy investors in the world (I think two of the three he specified were George Soros and Warren Buffett) are shifting their investments from concentrating on US dollars, to foreign currencies - demonstrating a lack of faith in the future of the USA's financial institutions.

Stability can only be gained internationally if we expect to continue the globalization of our economy.

My fear is that by allowing two of the most capitalized nations in the history of the world (the USA and China) to become perilously embroiled in an imbalanced economic relationship, world security is being put at extreme risk. China has severe problems with respecting human rights, we have severe problems with a political system that can only respond to crises rather than preempt them. Our debt to China can not be willingly paid nor militarily enforced by them yet. How can that be rectified?