Socialism, at least the state-run socialism we've seen so far, doesn't seem to work or be as successful at generating wealth (for anybody: rich or poor) as capitalism. There seem to be two dangers that governments take when they interfere with companies.
1. The government protects failing companies, essentially throwing good money after bad. There's a reason companies fail, and when the government supports them, the companies will not reform. Lesson: Business need to be able to fail.
2. The government protects workers above and beyond what might be considered healthy. You often hear the wonderful perks that people have in some European countries (paid nanny for new mothers, mandatory 6 weeks vacation, 35 hour work weeks, extreme difficulty in firing people). However, this can cripple companies that would otherwise be healthy into failing status, especially when you cannot fire incompetent people. Google buys other companies many times not for their products but for their engineers. Google recognizes the advantages to having the smartest people on your staff. The corollary to this is that businesses need to fire people that have become dead-weight. Lesson: Let the market determine employment with government guidelines only setting parameters to make sure there is no exploitation.
So where does this leave us: I told Harry that instead of reforming socialism because governments are too rigid and beauracratic, we need to reform markets. Capitalism that cares. Or Friendly-ism (Friendlyism?). This can be done by switching the primary motive of businesses from "The largest possible profit for our share-holders" to "Enough money to sustain business, pay employees a livable wage, develop future plans, and save for future economic troubles."
Friendlyism should have several concepts within it. The highest paid employee should not exceed 5 times what the lowest employee is paid. Environmental responisibility is a bedrock foundation. Companies should be connected to the local community in a positive and tangible way.
I know many companies already do these things, but our current economic crisis was brought about because the underlying philosophy was "largest profit." Businesses need to be able to fail and compete with each other. But instead of a cut-throat, win at all costs model we need to embrace our competitors as friends striving to make a living in this world. What else was the first markets but people exchanging tools for clothes, meat for vegetables, knowledge for help around the house. Markets weren't about undercutting your competitor but about surviving, living, and communicating with your friends, family, and community.
