By Svetozar Pejovich
It is arguable that the average American understands neither the theoretical basis of socialism nor the actual history of socialism. The purpose of this article is to identify two issues that should help to inform the median voter about some important differences between capitalism and socialism as well as between different types of socialism that are advocated for the United States.
The Efficiency of Capitalism Vs Equality of Socialism
The major features of capitalism are the rule of law, credible private property rights and the freedom of individuals to voluntarily interact with each other in the pursuit of their own ends. These features of capitalism create incentives that link rewards to performance in competitive markets. This link, in turn, produces wealth at much higher rate than other economic systems. Numerous economic indexes and, most importantly, people voting with their feet are the best evidence of the economic efficiency of capitalism relative to other systems. CONTINUE READING HERE