this post was submitted on 20 Aug 2023
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Capitalism is definitely good at some things. Specifically generating wealth. If you're a developing country you want to use capitalism because it will grow your economy as fast as possible. I think once a county has built enough wealth, they should switch to a blended system.
Capital doesn't generate wealth. Labor generates wealth. Capital takes an oversized percentage of that wealth because the kind of financing that Capital provides requires Capital to be in charge.
The only reason a developing country would want capitalism to generate wealth is because the established capitalist order will blockade or otherwise decimate any country which tries to step out of line. We've seen it time and again throughout modern history. Planned economies work for developing countries. They work so well that capitalist countries will band together in order to isolate those economies from the world out of fear of contagion. This was, for example, a key reason capitalist countries tried to contain and isolate the USSR and China, before both started embracing liberalization policies.
No, if you're a developing country, you want a planned economy. The only reason to allow private capital would be to gain access to foreign technology and to stave off imperialism until you're capable of self-defense