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The Cycle of Socialism and Capitalism (November 23, 2006)

The economic policy of society goes in cycles. We utilize capitalism to stimulate economy through free competition when the wealth is relatively evenly distributed. Then we adopt some socialist policies when the distribution of wealth is  lopsided and destabilizes the State.

Near the end of the capitalism cycle, superrich people who control big firms often use fascism to prolong the cycle and protect the excessive wealth of the superrich. The fascism controls the State and the Church with state sponsored projects, propaganda, secret police (internal control), and war (external distraction).

On the other hand, the intention of socialism is to give some of the excessive wealth to the poor to make everyone more or less happy, in turn stabilizing the society. No one is irreplaceable in a society. Excessive wealth acquired through inheritance, lucky investment, should be given to the State when poverty becomes problematic. In turn, the State uses this money to help those do not have inheritance, wiped out by bad investment, or do not get the lucky break in business. In the end, the rich (the "Haves") will still be much richer than the poor (the "Have-Nots"), but not much more. We set a limit to the game of competition.

The method of Socialism includes social warfare, accumulative tax, or even state-sponsored public works programs that employ many workers. Another possible method is setting a limit of income for all the people in a society.

The fundamental spirit of Socialism is to guaranteed a basic standard of living for all people. With socialism, people can choose to share rather than to compete. The advantage of this concept is that radical sadness is taken away from the society and the danger of revolution is lessened; the disadvantage is that unwillingness to work can lead to the decrease of wealth and living qualities of the society. Thus leads to the end of socialism cycle and the State needs to encourage Capitalism again to stimulate growth.


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