The Washington Outsider

Socialism, and Capitalism, in the Americas: Lessons from Brazil

3/14/2016

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In the wake of the 2008-2009 Great Recession, growing economic disparity, and the all-around failure of capitalist policies to serve the interests of average people, socialism has grown in popularity.  Where Europe has long flirted with socialist parties, self-proclaimed “Democratic Socialist” Bernie Sanders and his enduring challenge to Democratic frontrunner Hillary Clinton is a clear affront to the capitalist philosophy that has long dominated US political and economic thinking.   

​In countries like Brazil, however, the failure of socialism teaches us the need for balanced policies. 
 
Brazil has erupted into another round of democratic upheaval with an impressive 1.3 million protesters rallying for the ouster of Leftist President Dilma Rousseff amid ongoing economic turmoil and the prosecution of her Workers’ Party predecessor Luiz Inácio Lula da Silva over corruption charges.  Although facing impeachment and charges related to her campaign finances, Rousseff’s wrongs pale in comparison to the kleptocratic opposition figures who have built their careers on corruption and crony capitalism. 
 
Hoping to use the wave of civil discontent to reassert control over Brazil’s government and economy, Rousseff’s accusers are the same individuals who used the guise of capitalism to redirect national wealth to their cronies and deprive the impoverished of much needed opportunity.
Brazil’s faltering economy, like many of the Left-leaning Latin American economies, has never provided for the interests of its People.  Instead of overcoming corruption and policies that enriched the few without generating a sustainable consumer-driven market economy, the Peoples of countries like Brazil were pushed to embrace socialism.  Thanks to the policies of former President Luiz Inácio Lula da Silva, a.k.a Lula, millions of improvised Brazilians finally started to benefit from the fruits of Brazil’s natural wealth through massive social welfare spending. 
 
Thanks to the collapse of commodity prices and weak demand due to China’s own economic woes, however, Brazil’s overreliance on government spending and too few revenue sources has created a disaster. 
 
Brazil’s economic troubles will not, however, disappear with a shift to opposition leadership.  After all, Brazil’s troubles are as much the fault of capitalist-leaning politicians who seek the favor of Western investors above the approval of their own People.  So long as capitalism is simply used as a facade to exploit and sustain the impoverishment of the masses, Brazil and the rest of Latin America will never achieve sustained success or long-term economic stability. 
 
For this reason, Brazil’s Right-wing political elites cannot hope to attract foreign investment by seizing upon current political and economic stability to force their way back into power just to push Brazil’s poor deeper into poverty.  This will only perpetuate Brazil’s political and economic instability. 
 
On the other hand, socialist forces, if they manage to hold onto power, desperately need to foster business development in order to engineer a sustainable economy that serves the interests of the Brazilian People.  Although capitalism is considered profanity in many corners of Latin America, democratic capitalism is needed to help engineer the economic mechanisms that ensure an economy is viable. 
 
Although property rights and other financial protections can be seen as a means for corrupt government officials to help the wealthy exploit a nation’s wealth while depriving the poor of their share, wealth building and family-owned small business development is essential to help average people lift generations of their families out of poverty. 
 
Since the introduction of the “capitalist” and “socialist” terminology, political forces have pushed the countries and Peoples of the world to choose one or the other.  That said, both “capitalism” and “socialism,” represent two ends of the same economic spectrum.  Making the intellectual distinction between capitalist and socialist policies is, therefore, only useful when it is done to understand how public policies work. 

Beyond ideologies that have tainted the capitalist-socialist debate, the fundamental difference between capitalism and socialism is that capitalists rely on automated mechanisms to regulate their economies; whereas, socialists rely on manual interventions to control their economies.

Looking at how the Chinese government has continued to react to the collapse of its stock market by seizing control of its economy, the Communist Party’s lack of confidence in the effectiveness of economic mechanisms it engineered is very apparent.
 
Much of Latin America shares this same lack of trust in capitalist policies thanks to a long history of self-serving power elitist who engineered their national economies to enrich themselves and impoverish everyone else.  Because socialist policies have delivered immediate and steady benefits to the impoverished, socialism has an obvious appeal.

Recognizing the interventions of the Right-wing George W. Bush Administration during the onset of the Great Recession, it is evident that all governments have a natural inclination to intervene when faced with economic threats, i.e. abandon capitalist ideals.  For the United States, a legacy of self-serving capitalist policies has also resulted in sharp income inequality and growing poverty, which does feed populous outrage.  At the same time, socialist policies have failed the People of the United States while the same is true for all Americans.  

It is important to remember economies solely exist to distribute wealth in order to provide for the needs of people.  What feeds a lack of confidence among socialists is the sense that capitalism exists solely to redistribute a country’s wealth to the elites.  Socialism is supposed to force equal distribution.  Capitalist policies can, however, be more efficient, because their automated nature allows an economy to immediately adapt to changes and avoid the ill-effects of human error policymakers introduce when under political influence.  

For the capitalist, the ability to earn a higher socioeconomic standing and profit from one’s labor, intellectual property, or financial investments is a sign of a healthy economy.  Capitalists see the value in rewarding those who make industries more efficient and grow the economy through innovation.  They have confidence that capitalist policies can be engineered to distribute wealth in the most efficient means possible, i.e. to provide for the needs of people and the need for sustainable economic growth.  

On the other hand, wise capitalists understand economic policies can be engineered to harm an economy by enriching the few at the expense of the many, which is often seen in socialism.  Wise capitalists are not blind to the self-serving nature of mankind as well as the tendency of elites to legitimize, solidify, and consolidate their power through economic means.  A blind pursuit of capitalist ideals has encouraged the shunning of anything remotely socialist in the United States.  This includes necessities like unions and proper regulation, which are needed to achieve a healthy capitalist economy.  

Unfortunately, Latin America’s failed experimentation with capitalism throughout the years has not been enough to overcome its socialist legacy.  Socialism has simply created a dependency on corrupt, self-serving governments that cannot provide for all the needs of their Peoples while capitalist reforms have been used to legitimize the impoverishment of the masses.  Because shifting favoritism toward capitalism and socialism always ends in disaster for the Americas, there needs to be an embrace of balanced, pragmatic policies that will help build economies that provide for the needs of the many Peoples in the Americas.
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      • On Defunding Political Science Research
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      • Justice for All: The Case for Legal, Social, Economic, and Personal Justice
      • Why Hardliner Thinking in the NSA and CIA is Doing Damage
      • On the Baby Boomer’s Self-Centeredness
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      • What Modern Day Revolutionaries Need to Learn from Leader's like Mandela
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      • Perceptions of the United States
      • How Honesty Relates to the Great Recession
      • Why the Middle Class and Rich Need to Support Their Long-term Interests
      • The Aristocratic Republic of the United States of America
      • Discussing the Need for Community Support
      • Why New Forms of Capitalism and Socialism Will Compliment Each Other
      • The Reason We Need to Understand What it is to Be Poor in America
      • Why the World Needs to Reinvest in America
      • Why Are We Against Terrorism?
      • Why Does Terrorism Exist?
      • US Influence: The Value of American Citizenship Around the World
      • Responding to "the Soldier as Sacrficial Victim"
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      • How comfort defines us as people >
        • Is Suicide a Cowardly Way Out?
      • Defense Against the Dark Arts of Manipulators
      • Defining Abuse >
        • On the Willing Victim of Abuse
        • How to Understand Abuse Victims
        • Recognizing Abuse
      • The Role of Substitution in Decision Making
      • Trying to Understand PTSD and Other Trauma-induced Mental Health Issues
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        • Mental Illness is Not the Cause of Anger and Violence >
          • Trying to Understand the Boston Marathon Bombing and Other Violent Crimes
          • Getting into the Twisted Mind of the Tucson Murder
      • Describing the Mind as Modes of Thought >
        • It’s Just Sex?
      • Relationships, or Arrangement
      • Understanding the Effects of Groupthink in the Workplace
      • Relating Circular, Inductive, and Deductive Reasoning to the Scientific Method and Religion
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      • The Need for Greater Economic Leverage >
        • Evaluating NAFTA and TPP
        • Undercutting Logistics with the Underpaid Independent Contractor
        • Unions: Hindrance or Essential to Free Markets
        • Eminent Domain Used Against Banks
        • Haitians Sue the UN for Failure to Help With Cholera
        • Looking at How Corn-based Ethanol and Other Alternative Energy Subsidies Stack Up
      • Empowering the Sovereign Nation-State by Rethinking Trade Policy >
        • Irish Sovereignty Lost Before Bailout
        • Why Sudan's Greatest Long-Term Hurdle is Our Lowest-bidder Economy
        • Reduce US Imports by Buying American Made Products
      • Ending the need for government support and tackling poverty
      • Income inequality: understanding the limitations and psychology of disadvantage
      • Looking at the Future of American Jobs >
        • On Questioning the Need to Address Economic Disparity
        • Minimum Wage is Not the Problem
        • Responding to the "Blip"
        • Why Education Is Not The Civil Rights Issue Of The Twenty-First Century
      • Considering the Impact of the Capital Gains Tax Deduction
      • Embracing a Capitalist Mindset >
        • Capitalism Versus Socialism
        • The Negatives of Socialism
      • Stealing Intellectual Property
      • Changing Business Models: From Enduring Entities to Cash Cows
      • Consumer and Investor Evolution in the Great Recession of 2008-09
      • Dealing with the Issues Surrounding the Patenting of Self-replicating Technologies
      • Is Technology Threatening Jobs?
    • Education >
      • The Role of Education in Creating a More Dynamic Workforce
      • Primary Education in America and the Changing Needs of Society
      • The Greatness of the American Education System
      • Ideas for Improving the United States Education System
      • Are Teachers Treated as Professionals?
      • Is Engaging Parents in Their Children's Education a Major Factor in Turning Around Low-performing Schools?
      • Should Grants Be Awarded to School Districts that Try Innovative Methods to Improve Student Achievement?
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      • On Reading the US Constitution
      • The Senate should not do more to limit the powers of the Judicial Branch
      • On the DOJ Justifying the “targeted Killings” of US Citizens
      • Corporations Do Not Have the Same Rights as US Citizens >
        • Corporate America Pleads the First
      • Discussing the Constitutionality of Per Capita Taxes
      • Was the California Supreme Court Right in Legalizing Gay Marriage?
      • Should the Bible Continue to Be Used for Swearing-in Ceremonies and in Courtrooms?
      • Should Religious Student Clubs Be Allowed in Public Schools?
      • Should the Government Control Talk Radio to Make it More "balanced"?
      • The Second Amendment: Not Outdated >
        • Are We Losing Our Second Amendment Rights
      • Eminent Domain Used Against Banks
      • Should a Woman Have the Right to Choose Abortion? >
        • Should Fathers Be Able to Opt Out of Parenthood?
      • Should Smoking Be Allowed in Public Places?
      • Is Teen Driving a Right or a Privilege?
      • Should US Companies Be Required to Provide Equal Pay to Women and Men?
      • Is eighteen too young to vote?
      • First Amendment Rights: The Priviledge of The Press
      • Do Mandatory Seat Belt Laws Violate Individual Rights?
      • Should cell phone use be banned while driving?
      • Dealing with the link between video game violence and children's behavior
      • Should police have to submit to routine drug and alcohol testing?
      • Public schools should not impose mandatory drug testing on students
      • Are High Taxes on Cigarettes Proper?
      • Should pharmacists be required to violate their religious beliefs and dispense the "Morning After Pill?"
      • Should school counselors uphold patient privacy or report students who become unstable?
  • For the record
    • Ongoing Issues >
      • Red Dawn in Ukraine: Understanding the Actions of Russia >
        • On Russia’s Coercion of Ukraine
        • The Russian Annexation of Crimea in the Eyes of the World
        • Putin Has Overplayed His Hand With Crimea
        • Ukraine in Terms of Resovereignization
        • Avoiding a Conflict Between America and Russia Over Ukraine
        • What Drives the World’s Interest in Russia’s Actions in Ukraine
      • China’s Aggressive Pursuit of Interests Demands a Global Response
      • Iran Makes a Deal: A Start to a Long-term Diplomatic Effort to Denuclearize Iran >
        • On the Future of a Nuclear Negotiations with Iran
      • America's Sphere of Influence: Retaking South-East Asia >
        • Power in Asia: Looking at the Power Shift in Japan
        • The China Paradox: Why America is Worried About China
      • Assessing US Support of Israel >
        • Tread Softly Israel for a Heavy Step May Be Your Undoing
      • Understanding the Dysfunctional Nature of the US-Pakistani Relationship
      • Recognizing the True Threat Behind the Current Unrest in the Middle East >
        • Reacting to the Escalating Crackdown in Syria
      • Assessing the Threat of North Korea >
        • Answering North Korea's Call for Food Aid: Breaking the Vicious Cycle Forced Upon Us by a Warring Nation
        • Dealing with the Restarting of the Korean War
        • North Korea Attacks South Korea
      • Dealing with the Ill-effects of Climate Change
      • Racial Inequality and Oppression Do Truly Exist in Today's Society
      • Should energy independence be a high priority in the US?
      • An overview of world wide Human Rights violations
      • Nuclear Threat from Pakistan
      • Return of The Cold War?
    • World >
      • Coverage of FIFA World Cup is a Chance to Focus on Poverty >
        • The FIFA World Cup Offers Benefits for More Than Brazilian Soccer Fans
        • FIFA Can Bring Brazilians Together as a Nation
      • Being Prepared for Any Potential Dangers at the FIFA World Cup Games
      • Treading Softly on the Politicizing of the 2014 Sochi Olympics Over Gay Rights
      • Why NATO Operations in Libya Lack a Well-defined Mission
      • China Hijacks the Web
      • Lessons from the Great Japanese Earthquake of 2011
      • A Modernizing Cuba Offers an Opportunity for Capitalists
      • The Seeds of Democracy Take Root in the Middle East
      • The Rebirth of Democracy in Tunisia
      • What May Come from the Hurt Revolution in Libya
      • Responding to the Violence of Qaddafi and Other Besieged Leaders
      • Embracing the Rise of a Democratic Egypt
      • Protests in Afghanistan Turn Deadly for Coalition Forces and UN Personnel
      • Haiti: Another Failing Humanitarian Investment
      • What Karzai Can Learn from Calderon
      • START II: A Necessary, Easy Success that Nearly Failed
      • Why Does the U.S. Government Support Independence for the Breakaway Serb Territory of Kosovo but Oppose Independence for the Breakaway Georgian Territories of Abkhazia and South Ossetia?
      • Iraq's Electric Issues: When Human Wants Trump Economic Sense
      • The International Community Reacts to Wikileaks: We May Be Moving Toward a Third World War in Cyberspace
      • On Climate Gate
      • Assessing Obama's Afghanistan War strategy
      • 2009 Iranian Presidential Election: The Fallout
      • Resolving Sri Lankan Conflict through Free Media
      • What are the Global Consequences of Russia's Invasion of Georgia
      • The War in Iraq: an assessment of President Bush's surge strategy
      • Drug War: Actions of Venezuela, Columbia, Ecuador in terms of Resovereignization
      • Is the Iraq Refugee Crisis America's Responsibility?
      • US support for a united Kosovo, Abkhazia, and South Ossetia: why?
      • Should the US withdraw from Iraq?
      • Setting a Timetable for Troop Withdrawal from Iraq is a Terrible Mistake
      • War on Terrorism is needed
    • Law and Order >
      • Rape in the US Military
      • Ethics of Force-feeding Guantanamo Bay Detainees
      • Reacting to the Aftermath of the Tucson Massacre
    • Economy >
      • Affordability Drives Fear of Obamacare and the Individual Mandate
      • Is the Economy Built for a Job's Recovery?
      • Gutting Healthcare Reform of the Individual Mandate
      • Arizona Budget Cuts Lead to Lethal Healthcare Rationing:
      • Shameful Collection Practices of American Banks
      • The Fed Reveals it Actually Undertook an International Bailout
      • Thoughts on French Budgetary Reforms
      • Seniors Start Businesses
      • The Case for Slimming Down the US Military to Make it Better
      • Looking at the Obama Administration's New Approach to Economic Policy
      • Should the Government Regulate the Credit Card Industry?
      • The Big Three's Big Chance
      • The Unhealthy Tone of the Healthcare Reform Debate
      • Should the federal government offer a bailout for home owners?
      • Environmentalists: Do They Do More Good Than More Harm?
      • Responding to Scott Walker's Contribution to the War on Unions
    • US Government >
      • America Needs to Focus on the Impending Fiscal Crisis
      • Reacting to the Bush Era-tax Cut Extension Deal
      • Quitting the Obama Revolution: The Fickle Nature of American Politics
      • John Boehner's Circus
      • Is the Fed Putting Itself in Jeopardy?
      • Wikileaks Goes After the US State Department
      • Discussing the Political Environment Surrounding the 2011 Budget Debate
      • What the Democrats Can Do to Ensure a GOP Year in 2012
      • What the 2010 Midterm Actually Said
      • Congresswoman Kathy Dahlkemper
      • Democrats Minus Nancy Pelosi Equals Opportunity
      • Terrorists Go Postal: The Terrorism Threat Reexamined
      • Victory in the 2008 Election: Reaction to Barack Obama'a Win >
        • Expectations for Barack Obama
      • President Obama's first one hundred days
      • John McCain's Negative Campaign
      • Reasons People did not Elect John Mccain
      • History judges the George W. Bush Administration
      • Should the next US President focus on domestic issues?
      • President Bush, should he resign or be impeached
      • Should the Ban on Government Sponsored Assassinations be Repealed
    • Off Topic >
      • A Face of America’s Greatest Generation
      • A Story About a Man Who Made the World a Better Place
      • Making the World a Better Place
      • The Bipolar Ethical Nature of Google
      • Learning Computer Plays Jeopardy
      • Verifying Medicine is the Real Thing
      • Taking a Practical Step Forward in Optical Computing Using Slow Light
      • Scientists Take a Closer Look at How Lithium Batteries Work
      • Remarking on the First Blizzard of the 2010-2011 Winter Season
      • Driving in the Snow: Acceleration is the Key
      • How People in Northwest PA Are Coping with the Increasing Cost of Oil
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