Capitalism vs Socialism: Which one is working?

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This is the dictionary definition of capitalism:

an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state

Characteristics central to capitalism include private property, capital accumulation, wage labor, voluntary exchange, a price system and competitive markets

--Wikipedia

What is profit?

Profit describes the financial benefit realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity in question.

Definition of socialism

any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods

But do socialism works? 

Here are some of the video, why socialism is much more worse than capitalism?



But what about capitalism. We have one-sided economy where only very few control the market. 

https://iambrainstorming.wordpress.com/2019/10/20/one-sided-economics/

Wealth inequality is on the rise. People are unemployed and in poverty. Capitalists are creating more problems (or negative externalities like climate change, pollution) than solving. 

Does capitalism promote innovation?



 

Yes, capitalism even is not working?

https://www.weforum.org/agenda/2020/02/countries-losing-faith-capitalism-economics-global-political-systems

The reason is our govt, policymakers who don't understand the complexity of systems and can't make apposite policies so that capitalism is dismantled and doesn't create negative externalities. There is no collective intelligence in the govt, they work for their own vested interest. Perfect competition that is pareto optimal but is never a capitalistic model. 


How should an economy function?

Ideally, economies should achieve solutions to programming problems that determine Pareto optimal allocations: an allocation of resources such that one cannot make any one agent or type of agents better off without harming others. 

https://direct.mit.edu/books/book/4932/chapter/625103/Economies-Obstacles-Welfare-and-Measurement

A democracy with approval voting where only experts join in the governance and work collectively without any vested interest. 

https://iambrainstorming.wordpress.com/2019/01/09/from-hypocrisy-to-democracy-this-way-delegated-proof-of-stake-2/

Evaluation of Voting Methods: Theory and Practice


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