According to a recent poll conducted by Rasmussen only 53% of Americans believe capitalism is better than socialism. This marks a new low for America as the dumbed down masses gradually accept Socialist enslavement as long as it means the government gives them free stuff. RIP Constitution.
I am not particularly surprised by these results. Anyone who has read Capitalism, Socialism and Democracy by one of my favorite economists Joseph Schumpeter would have seen this coming. Schumpeter who was writing in 1942 (way ahead of his time) argued that capitalism will never survive in the long term. He outlines the way capitalism will end and socialism will be demanded by the masses. Just for the record Schumpeter was an ardent supporter of capitalism.
Stages of Capitalism's Decline
1. Capitalism will succeed in bringing prosperity to a country and will be embraced by the populace as living standards increase.
2. As Capitalism evolves it will change into a form of corporatism where the top financial/business oligarchs start using government for their own purposes. Sounds alot like the bankster bailout of 2008.
3. In response to corporatism and general colluding between business and the government, people will start to become hostile to this corrupt form of capitalism. They mistaken capitalism for corporatism and increasing view socialism as the only perceived alternative.
4. The intellectual class will propagate theories arguing that we need to abolish free markets and replace them with government sponsored welfare state. That way every one will be treated "fairly."
5. Gradually the people become convinced by these ideas (with the help of the media) and democratically vote for a welfare state, which will limit entrepreneurship and freedom.
Schumpeter's analysis has proved prescient. We are in the final stages when the masses who have lost their jobs thanks to outsourcing and rely on government services make the final step and demand a welfare state. They no longer want to work for themselves or take care of themselves. Instead they want the government to take care of them from cradle to grave. In fact they believe it is their "right" to free health care, housing, education,etc. That is why you will see the healthcare supporters waving signs saying healthcare is a right for all.
To see the complete results of the Rasmussen poll click here
Black Swan Insights