Throughout history, there has been a cyclical phenomenon characterized through Neill Howe and William Strauss as the 4 turning points. 1 The fundamental premise of the theory is that civil unrest and primary wars are cyclical and occur approximately every 4 generations. to the fact that through the time we achieved in the fourth post-war generation, society is in a state of preference to replace but far enough away from the atrocities of war that ends up repeating the mistakes of the previous 4 generations.
As things stand, we are at the fourth tipping point, the last saeculum before the cycle restarts. What is unique to the fourth turning point is that it has traditionally been an era of destruction, involving wars and revolutions. No wonder we are witnessing social unrest. You don’t need to browse social media or the news much to see that other people need a change. People are starting to talk about the disorders of our society: wealth inequality, emerging prices of living prices, systemic malpractices, and a giant concentration of monopolies.
However, as with everything, it can be difficult to decipher the root cause of the disorders we face. Millennials feel disconnected because they will be the first generation in history to be poorer than their parents. 2 Average elegance is gradually getting fed up. it erodes as asset costs become increasingly inaccessible. 3 These issues push other people to make their revisions explicit and look for a way out of this mess. For years, other people have been more attracted to regimes like communism or socialism to publicize liberation and equality within society (40% of Americans have a favorable view of socialism, up from 36% in 20194). Does the regime replace the most productive action plan?And is capitalism to blame?
Before we can ask those questions, let’s first describe the other economic systems: 5
Capitalism: “An economic and political formula in which a country’s industry and industry are controlled through owners for personal profit, than the state.
– Democracy: “A formula of government through the entire population or all eligible members of a state, through elected representatives. “
Socialism: “A political and economic theory of social organization that argues that the means of production, distribution, and exchange should be owned or regulated through the network as a whole.
– Communism: “A political theory derived from Karl Marx, which advocates the war of elegance and which leads to a society in which all goods belong to the state and where the user works and is paid according to his talents and needs.
From the outset, one can easily conclude that capitalism is incredibly imperfect compared to communism, socialism, and democracy, as it turns out to be aimed at personal business and profit. However, if we take democracy out of the equation and take what we have learned from history, we realize that the communist and socialist façade of liberation, equality, and emphasis on others may not be something extra to the truth. Here are some old examples: 6
– Mao Zedong, China, 1943-1976 (Socialism): 70,000,000 deaths as a result of mass killings and government policies (the number of deaths in history).
– Joseph Stalin, Soviet Union, 1922-152 (communism): 28,000,000 deaths from war, genocide and famine (second number of deaths in history).
– Adolf Hitler, Germany, 1933-1945 (Socialism): 12,000,000 deaths from war and genocide (third number of deaths in history).
– Kim Jong-il, North Korea, 1993-2011 (Socialism): 2,500,000 to 3,500,000 (10-19% of the population) died from the famine of the 1990s, partly as a result of government policies. 7
– Pol Pot, Cambodia, 1975-1979 (communism): 1,700,000 to 1,900,000 (21-24% of the population) died due to politics and famine. 8
– Provisional Military Administrative Council (Communism), Ethiopia, 1974-1987: 1,200,000 died of starvation due in part to government policies9.
It becomes temporarily transparent that many of the major genocides, famines, and deaths caused by war occurred under communist and socialist regimes. Do these diets create a happier economy with a better quality of life?
Let’s take a look at the graph below (sorted across the happiness index, with the happiest nations at the top). There is a transparent correlation between democracies, happiness, freedom, quality of life and the purchasing power of currencies.
Countries 2020 ranked according to happiness rate 10 12 13
What is it about communism and socialism that leads to such atrocities, and why do they tend to fail?
Supply and demand: One of the biggest pitfalls of communism and socialism is that the creation of a centrally planned economy with the goal of equality influences labor power and destroys the natural forces of competition, which inadvertently distorts the source and demand. What we do is that, through source and demand, we obtain valuable economic data that allows our economy to correct mistakes, grow and innovate.
Insufficient wisdom and concentration of power: In communist and socialist regimes, society has a tendency to rely on the wisdom and delight of an individual or organization of individuals. Central planners perceive what it takes to move a country forward. The confidence is that human beings have many herbal prejudices, such as the desire to possess and make certain power, wealth, and security for themselves, their descendants, and those they enjoy. The result of these prejudices is that communism and socialism are prone to authoritarian and totalitarian. Once central planners begin to accumulate power, they don’t tend to let it pass easily. Ultimately, this led to some of the worst inequalities, human rights violations and social unrest in history. take credit for the collective wisdom of the population.
Suppression of innovation: Communism is based on the confidence that we have a classless society. While this might seem like a step forward, the diversity within our population prevents it from developing as planned. , entrepreneurship, gambling and business and we want to allow them to explore interests that resonate with them. People are motivated through the confidence that they will gain advantages from the completion of their work and this is what creates the best breeding ground for creativity and when we plan centrally, we eliminate rights to personal property and dictate that Americans’ careers are based on their skills and knowledge, We discourage Americans from thinking outdoors in an entrepreneurial and cutting-edge way.
Moreover, innovation does not have to come from the giant centralized powers, but rather emerge on the margins. It is through data loss that creativity and innovation flourish. innovation and creativity because it prevents non-traditional factual knowledge from infiltrating those who can use that data in meaningful ways. Humanity deserves to publicize creativity and innovation because this is how we will solve poverty, climate change, pollutants and more.
For those reasons, in the long run, communist and socialist regimes have tended to give in and have led to some of humanity’s worst atrocities. However, no economic formula is completely flawed; Otherwise, we would not see communism and socialism in the first place in force. On paper, communism and socialism have many benefits, as both aim to advertise security and equality. Social protection, while communism, well put into force, promises that you will have a task when you finish school and get rid of food insecurity, every economic formula has its benefits and its counter-benefits, so we will have to put into force what it paints, admitting to ourselves what it does not paint and adapting accordingly.
Can it be simple to see capitalism as the cause of the disorders we face because all those disorders revolve around the financial system, and it is rarely money that is at the root of wealth inequality and capitalist monopolies?A little deeper, capitalism has been unfairly the scapegoat for everything the government does not need to be held accountable. The truth is that those who suffer from so-called capitalism are, in fact, the other people who have lost capitalism due to the expansion of governability.
The Wrong Narrative
The concept that our social and economic disorders stem from government may be difficult to understand at first. The dominant narrative systematically frames capitalism for corruption, greed among personal corporations, and harmful monopolies within our economy. A wrong form of direction. This narrative provides the general population with something they can blame for the upheavals we face.
Why is this anti-capitalist narrative being pushed? The government doesn’t like to give up. from our economy to their own decision-making. This would only further destroy his people’s trust in the government. To perceive it better, let’s take a look at the other disorders we face.
Increase in space charges and the charge of living
Many tend to attribute the incipient burden of living to large corporations that raise charges and rising housing charges to the benefactors of capitalism who buy property; however, the truth is that these are challenges with our economic formula. The government controls the economic formula through the Federal Reserve and the U. S. Treasury. In the U. S. , which provides them with vital advantages, such as regulation that can and cannot use money, taxes hidden through inflation and economic repression, and the ability to self-finance without having to. We see this abuse of the economic formula In the last 18 months, 37 of all existing dollars have been created and the Federal Reserve has bought 76. 4 of the federal debt. They no longer want to count on tax revenues, but they buy their own public debt.
In short, the government must act in its own interest, directing capital where it deems it necessary, which seems to be growth-oriented at the expense of the economy, it does so through inflation, which is the suppression of interest rates and injection. of capital in our economy to stimulate growth, spending and consumption. The byproduct of this tactic is an accumulation in the supply of cash, which leads to an accumulation in customer prices, the burden of living, housing and asset prices, and inequality.
Monopolies
Monopolies, in a general sense, are not negative for society; they are destructive when they stifle expansion and innovation by suppressing competition in an attempt to maintain their monopoly position In a weak market, a monopoly is in its position because it adds price to society People have chosen to buy their products and services, allowing them to grow and develop. When they stop offering prices and/or an impressive product or service enters the market, those monopolies are naturally replaced through newer technologies and services.
Unfortunately, this is not the case in our current system. Due to the lobthrough environment in top-democracy countries, monopolies have the opportunity to donate giant sums of money to politicians and the existing ones to influence regulation in their favor. those monopolies by expanding barriers to access and thus reducing competition. Harmful monopolies are not a matter of capitalism, but rather a matter of giving too much to the government and allowing personal corporations to influence regulation.
Bad investment
While other people are too comfortable with the Federal Reserve’s response in times of stress, we are seeing an increase in excessive borrowing and speculative debt in an effort to maximize yields. This excess indebtedness has two important negative effects:
In an attempt to locate a home, this capital is discovered in higher-risk erroneous investments, leading to an amplified fragility of our economy. Instead, the market occasion triggers much greater volatility and systemic problems.
2. A zombie business is a business that cannot finance itself. 16 This means that the product or service presented through the company is not in sufficient demand or that the company has been fiscally irresponsible and has not been able to pay its debt. companies therefore deserve to be restructured or dissolved. With the Federal Reserve controlling the economy and making access to capital less expensive and easier, you are expanding the number of zombie corporations in the economy. We deserve to let the life cycle of herbs extend rather than create unsustainable businesses. When a new business has to do so, competing with an increasing number of zombie companies, it becomes increasingly complicated for that company to succeed and thrive. Instead of focusing on innovation, the company will have to use some of its resources to be competitive. of publicly traded companies in the U. S. The U. S. were zombie companies, and that number is growing. 17
It deserves to be evident now that the disorders we face in our economy today are not similar to capitalism but quite the opposite: they are a by-product of government intervention and control.
No economic formula is perfect. Therefore, it is vital not to get lost in the analysis of the most productive formula, but we deserve to concentrate on what is under us to generate an economy that prioritizes people, promotes innovation and encourages creativity. We need to take a look at what it wants to replace in our existing semi-democratic and semi-capitalist formula:
Monetary formula: As will now be evident, in order to decrease the centralization of force, the negative byproducts of inflation, and the misinvestment of formulas, we want to separate the financial formula and the government, which eliminates the supervisory capabilities of the government, making sure that it acts as a service provider with the interests of others in the background. If the government does not act in the most productive interests of others, it will not get capital in the form of taxes and will not be able to finance itself. outside the financial formula from the clutches of government would allow a selected financial formula to emerge through the other people, one that would not be corrupted through the current ones and that would allow the true deflationary state of the global to emerge. 18 As Aaron Segal states concisely, “deflation is a measure of good fortune in the creation of economic value, because innovation creates more with less” 19.
Transparency: Nations fail when there is a lack of acceptance as true in government, resulting in coups and revolutions. The quickest way to break acceptance as true within a country is to eliminate transparency. One of the main shortcomings we face today is the lack of transparency. If we promote transparency in our economic system, we can repair trust between the public and government. This will help move the economy forward by reducing our waste of productive power spent fighting each other.
It can be tricky to separate democracy and capitalism, as they have sometimes been very connected in history. One can go so far as to say that we have never noticed a genuine economy based on capitalism. it has brought to the table and the same for capitalism; however, if we need to publicize innovation, productivity, sustainable expansion and the freedom to move forward, we are interested in adapting as an economy and taking credit for other regimes:
Socialist social protection/fitness care/education: We live in a world of inequality. Individuals enter this disadvantaged world and we have unpredictable occasions weighing heavily on our lives. Whether on a monetary, physical or educational level, it is a truth of life. Thus, we will have to have access to resources that allow us to feel incorporated into society and get the help we want to grow and prosper, in this spirit the most productive option would be to adopt the socialist formula of social protection, fitness and education, ensuring that everyone has access to those essential facilities.
Decentralized democratic decision-making: Democracy is imperative to ensure that the general population has a voice in political decision-making, but we will have to ensure that this does not lead to a concentration of force, a lack of transparency or the perspective of bad actors. To publicize transparency and leverage collective knowledge, we will have to focus on decentralizing and dispersing the strength of centralized government to the diminishing degrees of the state, whether municipal or individual. This would ensure that more people have a say in how our country is run and how regulations are followed.
Capitalist free market: The capitalist free market is a source of creativity and innovation, rewarding Americans who put themselves into play and bring their concepts to life. In addition, free market capitalism favors the source and demand for herbs, which allows us to extract very important economic resources. information, correct mistakes more effectively and prosper as a nation.
How can Bitcoin play a role in all of this?Bitcoin offers a means to bridge the gap between democracy and flexible market capitalism by offering a true decentralized currency that is:
– Unauthorized: no one is excluded from the use of bitcoin. There is no parent who makes a decision who can or cannot use it.
– Open source: Bitcoin’s code is open, allowing everyone the ability to read, propose a modification, copy or share.
– Pseudonym: Since no identification is required to own and use bitcoins, this promises the confidentiality of people.
– Fungible: all portions are treated similarly and should also be usable.
– Immutable: The blocks/transactions shown are engraved in stone and will therefore be replaced at a later date.
With a constant source of 21 million coins, bitcoin is proving to be one of the most productive price retail outlets due to its inability to be private through source expansion. This is to gain accurate knowledge about the source and demand. .
Bitcoin has the prospect of pulling the financial formula out of the government’s clutches, allowing us to exploit a true capitalist free market, which would allow us to download accurate data on source and demand, allowing our economy to grow, innovate well, and correct mistakes. . Bitcoin would also provide security to the general population, knowing that their hard-earned savings will not suffer inflation.
In addition, Bitcoin provides us with a wonderful example of the strength of decentralization. If we can get what we know from Bitcoin’s decentralized blockchain, we can generate transparency within our economy. The two spaces that can obtain the maximum advantages are:
Government: By implementing decentralized blockchain within the government, we can generate transparency and foresight for bad stakeholders. In addition, the promotion of decentralized transparency would allow everyone to access accurate and immutable consensus data, decision-making and economic data. it would allow Americans and the government to make greater use of this data to innovate and move forward.
Decentralized Autonomous Organizations (DAOs): Like other economic systems, flexible market capitalism still has the potential for bad actors. Using blockchain technology, we can build the next generation of organizations, the DAO framework based on open source code. Typical control design or board of directors, we are able to manage decentralized organizations. This provides investors with a genuine voice in the direction of the organization and provides public transparency regarding the organization’s goals and motivations.
It deserves to be transparent now that many of the reasons Americans push for communism and socialism are not because of the failures of capitalism, but because of greater governance, regulation, and control. The consequences can be negative: the mistake of consolidating and centralizing force has led to some of humanity’s darkest days.
Instead, we deserve to take a step back and take a look at capitalism and other economic formulas from a more holistic perspective. Let’s take the social protection/health care/education formula of socialism, put democratic decision-making into effect, and give back more strength. to others to let market capitalism run its course. By doing so, we may be able to resolve many of the disorders we are facing lately.
Finally, instead of pointing the finger at capitalism, we teach other people about the benefits it has brought to our economy in the form of increased innovation, personal property, privacy, and human rights. 20 In addition, we seek greater integration of new technologies like Bitcoin into our ever-changing economy.
Humanity is in the midst of a tipping point where it is getting rid of much of the old inefficient technologies and practices and leaving room for the new era. With that in mind, we want to focus on what matters. the economy we wish to see rather than directing our power toward others in the form of aggression and criticism. As Thomas Jefferson once said, “I look forward to the long-term happiness of Americans, if they can prevent the government from wasting other people’s paintings under the guise of caring for them. “
This is a guest article via Sebastian Bunney. The review reviews expressed are entirely his own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.
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