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2. Capitalism
Capitalism formed in the 19th century and started from an industrial revolution in Europe. At that time, people realized that by using machines and hiring people they could turn raw materials into productions that could help them to make profit in the market. Their capital then could be accumulated through manufacture activities. German scholar Karl Marx attacked that kind of producing process as exploitation and predicted that Capitalism will be ended because there were conflictions between the capitalists and the workers.
However, capitalists and their supporters believed that People have various incomes because they play different roles and had different responsibilities. Since the activities of investing, producing and consuming are based on free will we cannot say that who exploited who in the process. Capitalistic market is adjusted automatically bases on demand and supply and it run well in the last century.
In the 20th century, capitalists got wealth and powers. They monopolized the market and control its price such as oil and medical insurance companies did. People cannot live without oil and people care about their health. Monopolists make people pay $1000 health insurance premium monthly and turn the consumption into a form of blackmail. Capitalism is out of control. Driving by greedy capitalists is violating its principle and depriving consumer’s free will. This is one of the problems that Capitalist societies have to face.
For increasing their investments, capitalists collect funds by setting up banks and stocks. They promise to give out interest or dividends to publics who have accounts in their companies. It looks like publics have chances to share profits of business companies. However shareholders are not able to control CEOs share of thousands of dollars in bonus. As most banks in the United States have more liability than assets and; if all of us take 10% of our saving out of our account, banks will collapse for they have less than 8% cash maintain their daily activities. When those banks collapse, their insurance instituted FDIC will be un- able to providing insurance as what they promise. FDIC’s capital is just about 2% of the capital that it insured banks have. It cannot carry the guarantee function as well as Fannie Mae and Feddie Mac. Fannie Mae and Feddie Mac have about 81billion dollars capitals, however they collected about 5.3 trillion dollars mortgage from those irresponsible banks. U.S government tries to support this kind of too big to be collapsed institutes. Unfortunately government itself is carrying 13.7 trillion dollar debt as of 2010. When those too big to collapse institutes collapse, shareholders will be buried all the way at the bottom. Capitalists are not paying interest and dividends as that they promise but stole money from the small shareholders. This is another problem capitalists created.
When America became the strongest capitalist country its salary ranges were increased due to unions work. Unions made no productions. They collect fee from workers and counter business owners. The more they can get for the workers the more they were considered successful. As a result, workers in auto and steel companies had salary were a few times higher than the regular Americans and 100 times higher than workers in the other countries. Business owners had to pay pension and different kind of insurance as well. Capitalists then created a free trade environment in the world. They stay away from the bargains with the Unions and made more profit in over sea. In the last ten years America lost 42 thousand businesses that once provided five million jobs in the market. Today America has the least businesses since 1941. Obama’s team spent over one trillion dollars to stimulate the economic in 2010 that made the stock market go up but not the jobs. The employment problem reflects the conflicts between capitalists and workers. It will be not easy to solve. Theoretically, base on the law of free will Capitalists have rights to invest in anywhere. However, if they create a mono-polized market and made profit there they should pay more tax to the society. We can see that most profitable businesses own by government in China but are controlled by private family in America. Big capitalists in America are being protected well by the laws they set up. Companies such as oil companies and insurance companies don’t even pay the basic tax they are supposed to pay. Having no jobs, no health insurance, no retirement paychecks and facing inflation workers might go on riot just like what happened in France. Marx predicted that Capitalism would be ended because there are conflicts between capitalists and workers. He did foresee the problems that capitalism facing today. It is time to see if his theory works.
For modifying income distribution in the capitalist society, capitalist governments set up tax system and social security system. It collects social security fund from people and promise that people will be able to received checks at the age of 6o years old when they retire. Capitalist Governments themselves have no productions and investments. For example, all U.S government did was spending money on wars or provided welfare to the so call poor people who sit somewhere do nothing. It results in the social security fund in the U.S government will gone in twenty years. People’s retirement was post pond again and again to 68 years old. That makes more people unable to collect their checks before they die. Businesses U.S. government own are railroad and post office. Railroad made taxpayers lost about 200 million dollars a year. Post office is a black hole as well for the high pension they paid. Government’s national debt is over 70% of GDP. They said that is acceptable for it is lower than ratio that Japan has. They forget that Japan is holding about 700 billion dollars U.S bonds. After The Second World War American’s debt once went up to 90% of its GDP. We can handle it because at that time 50% of exporting products in the world were made in the United States. That helped U.S paid off the international debt that was about 90% of U.S GDP then. We has the strongest steel, auto and oil companies in the world and it had its light industry as well. Today 70% of U.S businesses are providing service but not relate to manufacture. We had over 1000 billion dollars trade deficit in the year of 2008 and 2009. International environment has been changed so big from then and now we still compare with the ratio then and believe that we can handle debts that are 80% of our GDP. As a matter of a fact, all we are doing now is to print dollars – using our credit until it is totally destroyed. Our capitalist system is not good and combines with the socialist policy it has now things are worse. Debt problem is another problem that capitalism has to face.
We walk into the wrong direction farther and farther. Our businesses are moving away, our banks and government have huge debt yet there are still economists encourage us to consume in the age of free trade. We believe we should have free trade in this world but we are not ready to live in the live stander that the other countries have. We have no jobs but we require high salary. We have no money and we create debt. We print dollars until we become the enemy of the world. Are we hopeless? Is capitalism hopeless? How do we adjust capitalism just as socialist country adjusted their system? I will have another article to discuss this subject. – (Enjoy your reading and think)

1. Socialism

Cold wars between systems of Capitalist and Socialist have been continued for almost one century. In the very beginning, deriving by the concept of equality the communist regime deprived individual’s properties and eliminated private businesses. They turned to their communist dream to dictatorship that controlled people thought and resulted into alot of unjust imprisonment. They believed that their socialist system was the best system and tried to promote it to the whole world. For that reason they were considered evil and being resisted by capitalist society. We had Korean War and Vietnam War related to that. We developed nuclear weapon also for that.

In 1980s, Soviet’s former president ended its socialist system by just making a declaration. More than 50% of socialist countries in the world disappeared in one night. Today, only a few countries still admit that they are socialist countries and China is one of them. However, the Chinese claimed that their socialist system will have its own characters. For example Chinese government allows the existence of private properties and business. They encourage foreigners to invest in China. It actually means that they are not against capitalists any more. They meanwhile practice capitalist principle to make profit. They let private people run government’s business that had big deficit all the years. They allow them to take the earning or lost and pay tax meanwhile. During that time large number of Chinese workers were laid off which allowed government owned enterprises to gain profit immediately. For the last twenty years those businesses have no competitors in Chinese market. It is said the tax they paid is five times of the private business. However, salary of government employees took was ten times higher than regular people. I discussed this with my friend in Biijing. She told me that before government allowed those businesses kept their profit to make reinvestment. That is why those companies develop so fast. Starting from 2010, all those profit are considered as Government’s income and have to be distributed in a fair way. Bringing down the difference between people’s income will be the major goal for Chinese government in the next five years.

Up to now Chinese government have tight control over businesses as below: military industry; electricity supplies; oil and productions relate to oil; communication system that provide phone service, all the resources such as oil, coal and natural gas; public transportation shippin industry such as airline, railroad and ships in long voyages; financial institutions such as banks. That is why they are able to make big investment such as buy up mines in oversea and build high speed rail road to Europe.

In 2010, Chineses government’s income increase 22% compare with 2009. That allows they spend 1.72 trillion RMB on health care that cover 1.2 billion populations. ( it was such a big deal for us to cover 33 million people’s health insurance) They are thinking about set up social security system for 800 million peasants. Chinese are entitle to collect retirement fund monthly at the age of 55 to 60 years old as long as they pay social security payment for fifteen years. Those funds are not allowed to be used in any other purpose. (We used people’s social security fund to paid welfare fund and post pond American’s retire age) They also provide 9 years free education for children. In the past 10 years they helped 200 million people leave the rank of poverty. Their population is 20% of the world and the poverty people they helped was 75% of the thousand year plan that was promoted by United Unions for eliminating poverty in this world.

I don’t mean that socialism is better than Capitalism. Today Chineser government leaders are not elected by people. They put their opponents in jails. In last year their cadres spent 900 billion RMBs on travels. In the year of 1999 this figure was bigger than the sum of their health care and education budget. Corruption is serious and there is no social watchdog. Now they mentioned about changing their political system for the needs of developing their economics. Mr. Hu talked about maintaining harmony for their society and tell people learn how to accept each others. Mr. Wen told America channel CNN that he would insist improving their political system till he died. It is said today Hu and Wen actually are being attacked by three different powers: People who still believe in Mao’s socialist theory; people inside the party whoare corrupt and those who are victims of the Tiananmen event in June, 4th, 1989. Under that kind of situation Hu and Wen still try to improve their political system. What have we change our system all these years? Nothing! We always believe that our system is the best system and we are alway right. Except creating wars in the other countries to protect our home land we did nothing.

In the US election of 2010, many candidates raise slogans to attack China. They said the Chinese take jobs from Americans. According to data disclosed by Mr. Hu, all together American business have 60 thousand projects invest in China and 75% of them are making profit. In 2008, 146.7 billion dollars worth of their products were sold in the Chinese market directly but were not considered as their imports to China. They sent 72.2 billion dollars products back home and those products were considered China’s exports to the United States.

There were three American scholars researched the cost and profit about Ipod. It disclosed that Ipod’s price is $ 299 in the market. $ 163 was earning of American company. $80 belongs to Apple Company, $75 belongs to the retail companies and $8 goes to the U.S manufactures that provide parts. In oversea, Japan gain $26 for the materials supply and China only get $4 for the installation jobs they did. However $150 was counted as Chinese exports to the United State.

We also accuse the Chinese for controlling there currency rate. From 1994, RMB has already increased 55.2% that actually cancel out profit that the Chinese made all these years. In solving our financial problem we keep printing dollars. A German leader openly commented American’s policy, saying that we control currency rate indirectly by printing dollars. We attack others but do not examine our own behavior . Blaming on the Chinese doesn’t lead us anywhere. It just proofs that our politicians refuse to find out the real reasons that cause our problems. They are still playing games to fool us.

A piece of news saying that Japanese young men will no longer be aggressive and work hard as their fathers did. They would not spend that much money as well. For example they do not spent a lot on drinking and they believe that a drunk in the street is just like an idiot. This interesting phenomenon is what I expect to see.
The article said a Japanese young man quit a job that needed him to work twelve hours per day. His boss told him that he would unable to find another job as good as that for the rest of his life. He said he did not mind because he needed more time to stay with his family. It looked like if it only needed the young man to work six hours and paid him less he would not resign. If his boss hired two people to work in his position, the decreasing of his working hours would make a job opening in this world. Unfortunately employers in this world do not think things in this way. In the end of Oct, 2010, New York State government declared that they will eliminate 890 job positions. People who lost jobs will get paid by the government in another way – collecting unemployment check and claim for food stamps. We still do not keep jobs by decreasing people’s working hours.
Minimimizing our spending can make decreasing working hours become possible. If we cannot create that many jobs we should decrease jobs demands. The policy of maintaining high consumption, high GDP to create jobs leads us to a dead end. Data shows that if people all over the world live by the standard that Americans live by the resources on earth have to be increased 500%. We are using resources that belong to our children and we left our debt to our children. The young generation should stand up to today’s policy.
On the same day I read the new trend in Japan, I saw an advertisement in the subway. Two happy young guys stood close together. They are those youths who hang out in the street to play basketball or skateboarding. They are obviously not future doctors or lawyers and they said they are proud of who they are and how they love. In the same advertisement it said that they are about trust, respect, and commitment. They do not work hard to make money, to be a doctor or lawyer to prove that they are somebody. They are somebody who will eliminate wars in this world because they love each other, trust each other and respect each other. That is an advertisement for facebook.com we love boo. I don’t know what boo mean however I can smell what they are cooking because what they mention has nothing to do with studying, working and consuming.
Reducing work hours doesn’t mean that we are laze. We just don’t want to work like a slave and spend money like an idiot. We just want to share our jobs and not set making money as our goal. On whole we don’t work hard, we don’t have money to spend, we don’t throw away things. We are cheap and poor but we love each other and we are proud of who we are.

Thanks to all the visitors to my website. Your comments are just like echos from afar telling me that I am not alone in this world. Believe it or not up to today, none of my family members, my co-workers or my friends read my blogs. If I discuss things with them they will tell me don’t bother or simply tell me that my English is too bad to get attention and nobody will read what I wrote. For more than ten years I am just like an idiot who looking for the starts when fog is around. If I was not in a kind of craze I could not hold on for so long. I knew that I am a normal person until I received your comments. I didn’t answer questions in your comments because I am too tired to make a response. Keep writing with my broken English is all I can do at this moment.
I am not a good writer, particular when I write in English. You like what I said just because I am not only making comments but try to present some ideas to solve the trouble. That means what I write cannot be always new. I express my opinions and hope you discuss them, promote them or practice them. Facing today’s messes simply do writing and reading is not enough. We, particular those who are young, get to take some actions to change this world.
Please remember something: we can at least keep one new standard in our mind and influence people around us as much as we can. Having higher income doesn’t mean that the person is successful. Success should mean a person is able to obtain the greatest happiness by consuming the least resources and his existence make people around him happy as well. (people who live on govenment’s welfare and cheap rich people do not count). On the whole, how our youth view this world and how they run their lives will determine what our world is in the future. When those greedy warmongers and religious bigots get old and die our world can be automatically changed.
I read your comments a few times every day. I notice someone asked: Do you guys have a twitter fan page? I know what he means. He hopes people who like this blog can contact each other and actually do something. Starting from here we maybe can go somewhere. You don’t have to get permit from now on. Go ahead to set links between your website and this website, go ahead to put this web in your face book. Go ahead to do things to promote ideas in this blog and discuss things as well. Please don’t just wait to read my articles. You can do more than me for this world.
Thanks again for your comments.

In the autumn of 2010, owners of farms in the west coast of United States posted an advertisement that hired a few thousand agriculture workers with the wage of $10 hourly. They only got seven people signed up. That news made me understand Americans more. Americans don’t do some work even though they have no jobs, no shelter and no food because they know that their government will take care of them anyway. Our government meanwhile giving out huge unemployment fund and doing nothing either. They even do not assist people to fill in opening jobs. Under the bad economic situation, all they did were creating debt, printing dollars, giving out unemployment fund and forcing the other country to change their currency rate. Still jobs go all over the world but do not come back to the United States. It is the high salaries and different kind of insurance that Americans need frustrate our business companies. Jobs that cannot move out of this country, such as agriculture jobs are hiring illegal immigrant workers for it. Americans gave up jobs in either ways.
Why are there jobs and nobody likes to do it? Agriculture is more and more important today for natural disasters occurred frequently on the Earth. In 2010, U.S agriculture exports increased 5% with the total amount of 113 billion dollars. Grain that the Chinese imported was increased from 14 billion dollars to 15 billion dollars. This demand will be continually increased in the future. China has about 20% population of the earth. Things that they need will become short in the world earlier or later. For seeking profit, the Chinese are unwilling to plant grain today. In China, one acre field only creates 500 RMB profit ($80) per year and that amount is 4% of a factory worker’s annual income. In 2010, the companies in China have difficulties collecting grain from their peasants.
Since agriculture can bring in profit for us we have reason to develop it and expect jobs from that field. Our government should use some of the bailout funds and unemployment funds to improve the agriculture working environments. We should build up decent living facilities and design different kinds of entertainment programs. We should set up connections and help people to find jobs not only in the cities, in the towns but in the countries. This is an age that has internet and TV. I strongly believe that as long as we have delicious food (by using organic material), have companies (soul mates) and have fresh air life will be fine. In Israel there are farms(kibbutzim) that provide people houses, furniture, clothes and food for free. People meanwhile work for the farm for free. If we have free housing in farms, basing on the 10$ hourly salary rate working 5 hours will be enough to maintain a basic life for us. When we have nineteen hours to entertain ourselves everyday life should not be considered tough.
We can use our grain to exchange for oil and other raw material from the Middle East and Africa. The price of oil can be increased from 12$ per barrel to over 100$ per barrel as well as the price of grain. When time comes we will without mercy and go ahead to collect our dollars back. We are not printing dollars any more. We work hard and we do what people are unwilling to do. We therefore have grain on hand. Grain with a decent price will bring in appropriate profit for us.
We need to improve our agriculture environment and create new life style for Americans as well. This is not an easy project and should be considered part of the green revolution that Obama promotes. It needs our government to plan it. It needs our business to fund it and it needs Americans to participate in it. This should be a project for the whole society and can be considered a socialist project.
My ideas in this blog might sound crazy. The financial difficulty we encounter today is much more serious than we believe. Ordinary ways such as lowering the interest rate, stimulating consumption, and printing dollars cannot help us to solve the problems. We have to use some unusual ways to deal with things even though we are considered crazy by people who live in the box.