deksman :
Oh I'm aware of supply/demand, but that also depends on what the market offers in the first place - people are downright uneducated these days on what technology can do, the kinds of materials could be used, etc.
Money has nothing to do with our technological/resource ability to produce superior synthetic materials in abundance. It only serves to artificially constrict access to those materials for the purpose of profiteering from existing and 'cost efficient' materials - because if we were actually creating the best of what is technologically possible, without planned obsolescence, profits would plummet.
Cost efficiency = technical inefficiency.
As I said, I don't care about what is 'profitable'... Capitalism as such doesn't give us the BEST of what is technologically possible in a sustainable capacity, because the whole monetary system is unsustainable, promotes cyclical consumption that stems from planned obsolescence, recycling little to nothing and creating enormous waste in the process - all of which is profitable.
The whole profit based system is based on scarcity - today, we live in an artificially induced scarcity.
Its idiotic.
Some good and thorough explanations have been given above, but I'll add to them.
First of, Capitalism as you claim is pretty much based on profit right? Well, with that in mind, along with the idea of things like diamonds being expensive (I bet even synthetic ones) why don't a lot of people (companies) make synthetic diamonds? This should increase supply and thus move towards satisfying the demand more (and thus provide for lower prices). Maybe because it's not so easy (generally-speaking) at all to make them?
You don't care about what is "profitable, you say? Well, that's just ignorant and selfish thinking, IMHO, sorry to say... Let's put it this way... What will happen if you worked and donated all, and I mean
all of your wages to the less fortunate (similar to companies providing a better product at a loss if they don't do what's profitable)? You wouldn't have money for food for one thing (out of
many necessities), which pretty much may mean you'd be dead, and thus can't work anymore and thus can't provide for the less fortunate anymore. Companies need to "survive" as well. If not, "dead" company, no more products, possibly dead people.
I believe that Communism or Socialism would work best if every person would not be self-serving and work towards the greater good, but unfortunately, I bet the majority of us don't. You for instance would probably have spent what you did/are for being able have/use a computer. It is hypocritical.
Anyway, a big problem about not being Capitalistic is, in one word,
incentive, rather the lack thereof. People don't have to work because they'll be taken care of ideally. So you'll have more people leaching of the working people's taxes. The working people can eventually get overwhelmed by taxes and figure out that it would be more feasible to live off welfare, and then the cycle repeats until...it gets really bad...the state of the country I mean.
The U.S. isn't purely Capitalistic, and proof of the is our welfare system. A lot of people abuse it and thus we're affected by the downsides of Socialism/Communism. Welfare isn't bad though, but the system could be better. I don't think Socialist/Communist countries are purely what they are either, or else, I don't think you'd see Foxconn workers choosing to suffer as they reportedly do. I believe CaedenV pointed out how China just can't sustain those ideals economically, and I think I see why. (I'd have to say that I'm skeptical though about the politicians there not being dirty. Some may just make themselves appear like they really care about the greater good. Sorry, it's just that I'm from the Philippines and you can't help but see how horrible the corruption is there, and thus learn to be more cynical about these things.)
BTW, I believe that the economist Adam Smith has said that money is something that represents a person's efforts/work (or at least what it's worth). CaedenV explained why we use money (coins and banknotes/bills). We use money to show that we worked to make/do something that society needs/wants. Unless you have complete faith in your fellow man, it would awful if anyone could just go around asking for stuff without any proof that they "deserve it. (I think that's part of what a Utopia is, and thus that's why some/most people think it's impossible. In fact, according to Karl Marx I think, Socialism/Communism is an evolution from Capitalism, and after that is Utopianism, but the people have to be ready for those systems for them to work, i.e. think more about the greater good.) Anyway, it isn't a perfect system, as money can be lost and stolen. It can also be unjustly awarded in a way that's caused by any other thing than pure, ideal Capitalism. But I think the benefits far outweigh the downsides.
About scarcity... That sounds like great demand relative to supply. That would also mean, Capitalistic minded people would capitalize on that to make profit. What scarcity are you referring to exactly (that can be resolved by changing from Capitalism)?
Some of you defending capitalism ignore its full expression.
Read up on political corruption, lobbying, collusion, etc. Not only do certain industries prevent progress, they smear real breakthrough scientists, publish tobacco research, and more recently, some are using IP lawsuits as a competitive weapon instead of innovating (see Apple).
Those are problems indeed, but are you implying that all of them are exclusive to Capitalistic countries? You think countries with Communism (or any other system) can't experience corruption (which pretty much covers all three of the examples you suggested us to read up on)? If you can reply and say "Yes," I'd really be interested in a full explanation as to how any other system can do better.
