The Instigator
Subutai
Pro (for)
Winning
9 Points
The Contender
vaporizeislands
Con (against)
Losing
0 Points

On Balance, Capitalism Is Superior to Communism

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Post Voting Period
The voting period for this debate has ended.
after 2 votes the winner is...
Subutai
Voting Style: Open Point System: 7 Point
Started: 12/17/2013 Category: Economics
Updated: 3 years ago Status: Post Voting Period
Viewed: 1,014 times Debate No: 42535
Debate Rounds (4)
Comments (2)
Votes (2)

 

Subutai

Pro

Here is the challenge.

Full Resolution

On balance, capitalism is a superior economic system to communism.

BoP is shared - pro has to prove that capitalism is superior, while con has to prove that communism is superior.

Definitions

On Balance: "Taking everything into consideration; all in all."[1]

Capitalism: "A system of economics based on the private ownership of capital and production inputs, and on the production of goods and services for profit."[2]

Communism: "A political and economic ideology based on communal ownership and the absence of class."[3]

Superior: "Of high quality; high or higher in quality."[4]

Rules

1. The first round is for acceptance.
2. A forfeit or concession is not allowed.
3. No semantics, trolling, or lawyering.
4. All arguments and sources must be visible inside this debate.
5. Debate resolution, definitions, rules, and structure cannot be changed without asking in the comments before you post your round 1 argument.

Debate resolution, definitions, rules, and structure cannot be changed in the middle of the debate.Voters, in the case of the breaking of any of these rules by either debater, all seven points in voting should be given to the other person.

Debate Structure

Round 1: Acceptance
Round 2: Presenting all arguments (no rebuttals by con)
Round 3: Refutation of opponent's arguments (no new arguments)
Round 4: Defending your original arguments and conclusion (no new arguments)

Sources

[1]: http://www.thefreedictionary.com...
[2]: http://www.investopedia.com...
[3]: http://www.investopedia.com...
[4]: http://www.merriam-webster.com...
vaporizeislands

Con

I accept.
Debate Round No. 1
Subutai

Pro

I would like to thank vaporizeislands for accepting this debate.

I. Supply and Demand

If there's one thing people know about economics, it's supply and demand - as the supply increases, the price falls because (assuming the demand stays the same) the overall worth of the product is less; as the demand increases, the price rises because (assuming the supply stays the same) the overall worth of the product is more. Because businesses seek to maximize profit, they seek an equilibrium point of supply and demand. What all this means is that surpluses and shortages, which are very common in other types of economies, are not generally found in Capitalistic economies because of the laws of supply and demand.

"At this point, the allocation of goods is at its most efficient because the amount of goods being supplied is exactly the same as the amount of goods being demanded. Thus, everyone (individuals, firms, or countries) is satisfied with the current economic condition."[1]

II. Competition and Innovation

Capitalism, because of its inherently competitive nature, creates a sense of competition (i.e. for the most profit). What this means is that companies will produce the best products (to maximize sales) for the most efficiency (to minimize costs from inefficiency). "Competition in the marketplace is good for consumers—and good for business, too. It benefits consumers by keeping prices low and the quality and choice of products and services high. It benefits businesses by promoting innovation—improvements to make products different—and often, to make them better in ways that consumers want."[2]

Competition therefore leads to innovation, and it is innovation that has been the driving force behind the industrial revolution and subsequent rapid increase in technology. In other words, capitalism breeds innovation, which improves the lives of everyone. "Capitalism has made advances possible, not solely in providing life's necessities, but in science, technology, and knowledge of all types upon which human society depends. Freedom attracts innovators and explorers and gives life to their ideas. Freedom for people to act in their own self-interest is the mainspring for a diversity of ideas, innovations, and experiments that lead to the discovery of new products, services, and other means of production."[3]

In general, capitalism encourages efficient enterprise, which inevitably leads to a more wealthy society capable of expanding its economy, and ergo its wealth, even further.

III. Private Property

One of the many advances in human civilization has been the advent of private property. Private property allows for rights to be endowed upon people, where people can keep what they earn. In the words of Ludwig von Mises, "...[private property is the basis for] joint action and cooperation in which each participant sees the other partner's success as a means for the attainment of his own." This goes back to the laws of supply and demand mentioned earlier - whereas in other economic systems, shortages are common, capitalism's need for private propery allows for one to satisfy needs and wants because of certain rights.[4]

"In enriching most those who are most productive, capitalism allows the survival of billions of people who would not otherwise have survived. In fact, capitalism gives everyone — particularly the weakest, whom it is accused of harming — the best chance not just to survive but to thrive. One of many ways this is revealed is the vast increases in leisure that markets have made possible, while real incomes dramatically increased at the same time."[4]

IV. Empirical Evidence

The amount of empirical evidence comparing capitalistic countries to non-capitalistic countries is astounding. Time and time again, there is a markedly clear divide between the capitalistic, wealthier countries and the socialistic/communistic, poorer countries. There is probably no better regional divide than North Korea and South Korea: "Four decades ago, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and currently is among the world's twenty largest economies."[5]

Here is a graph comparing economic freedom and per capita income:



[6]

There is a clear trend line that develops as economic freedom increases - per capita income increases. Overall, economic freedom correlates with general economic development, as seen in this chart comparing economic freedom quartiles to overall economic growth:



[7]

It is easy to see the correlation here.

Overall, capitalism improves the lives of everybody by eliminating surpluses and shortages, encouraging innovation, establishing the necessity for private property, and in general, contributing to a greater increase in total capital and per capita income in a nation's economy. Communism does not have the necessary components for this present, and therefore do not experience the successes of capitalism I just mentioned.

Sources

[1]: http://www.investopedia.com...
[2]: http://www.ftc.gov...
[3]: http://mises.org...
[4]: http://mises.org...
[5]: https://www.cia.gov...
[6]: http://markhumphrys.com...
[7]: http://www.youngresearch.com...
vaporizeislands

Con

vaporizeislands forfeited this round.
Debate Round No. 2
Subutai

Pro

Well I can't argue against my opponent's arguments until she posts them. Arguments extended.
vaporizeislands

Con

vaporizeislands forfeited this round.
Debate Round No. 3
Subutai

Pro

Please vote pro.
vaporizeislands

Con

vaporizeislands forfeited this round.
Debate Round No. 4
2 comments have been posted on this debate. Showing 1 through 2 records.
Posted by Leninist 3 years ago
Leninist
I would happily take up this debate with you, if the opponent is too busy
Posted by Ikkemb 3 years ago
Ikkemb
Good luck to you both! I'll vote!
2 votes have been placed for this debate. Showing 1 through 2 records.
Vote Placed by Tophatdoc 3 years ago
Tophatdoc
SubutaivaporizeislandsTied
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Total points awarded:60 
Reasons for voting decision: Con didn't even argue at all. Good luck to Pro in future debates.
Vote Placed by philochristos 3 years ago
philochristos
SubutaivaporizeislandsTied
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Total points awarded:30 
Reasons for voting decision: forfeit