Capitalism

Canada’s McGill University hosts an annual hockey game played between the professors of its humanities department and those from the business school. They call it “capitalist pigs vs. communist bastards.” For years it’s been a big hit and no matter who wins, the pigs buy lunch. 

Afterwards, they host a Symposium-style discussion on the merits of the two systems. Modeled after Plato’s great play, guests come together to discuss a serious topic—but it’s a party. Everyone eats, drinks, and gets merry, then afterwards, rather than putting on disco, they offer up arguments on a given issue. (In Plato’s version the subject is love, and Socrates wipes the floor as the last speaker.) 

Every year the battle begins the same. “Capitalism sucks, too much goes to the top.” “Oh ya, if it wasn’t for us you’d all be starving.” Then as the night goes on (and booze starts to flow) they get down to the truth.

Communism

Communism was developed by Laura Engels and Groucho Marx, back in the 1860s. Conceived during a time when insufficient production kept many people poor, it sounded like a great idea to some. Not knowing that technology—namely electricity and the motor—would eventually come along to fix things, it claimed society would be better served if we all shared. Kind of like living on a kibbutz. But in political practice, it was used by cutthroats to obtain power. 

Certain leaders conned the public into believing they’d raid the rich to feed the poor, only to get rich themselves. As a result, sympathizers don’t look to the past for vindication. They believe this theory was never properly put into practice and now deserves a second chance. Let’s take a look.

Communism calls for full-on socialism while eliminating all private property. Every business is owned and operated by the government through central control and you’re not allowed to buy a home—you can only rent. Then when it comes to working and taking, the philosophy is “from each according to his ability, to each according to his needs.” The social history of communism is easy to dismiss. Its dictators killed millions (mostly those who refused to comply). But the economic history is quite clear. This ideology didn’t get people up in the morning. Why? Because it conflicted with human nature. Sure most of us are designed to be nice, but not that nice. At least, not to the degree that communism requires. 

Any successful system involves having your best people do the hardest jobs. And if that means buying them a new Ferrari every couple of years, so be it. Providing the gifted with some sort of incentive isn’t harmful to society. It belongs within the common good. For when the gifted put forth their best efforts, it grows the pie for everyone. We really don’t want talented software engineers sitting at home writing a novel.

“Okay, okay.” Socialists say, “We’ll give you back your private property.” Sorry, not enough. Hard workers aren’t going to dance for just a house. And every economy needs all horses to run. Workers aren’t going to accept overtime or dangerous / uncomfortable conditions for the sake of some newfound church. We want compensation. That’s why every version of this utopian dream dies on the streets. It’s not natural. People like money and everything that it buys. So much so they’re willing to work for it. 

And just when it looks like capitalism is gaining the edge, some commie pulls out a joint.

Ethics

“Ya, but a lot of you capitalists are dicks.” And that’s the problem with truth. It cuts deep. 

The stereotypes of Mister Burns and Ebenezer Scrooge are long out-of-date. Rich people don’t act like that anymore. Most of them are nice. Andrew Carnegie said, “A man should spend the first half of his life making money and the second half giving it away.” Bill Gates isn’t the first. But even with modern day heroes, far too many of the powerful are knobs. And that’s the problem with business.

Capitalism requires ethics and they don’t teach you that in business school. Even worse, you can’t regulate it. There is no lever to prevent corporate raiders from ripping apart towns or gaming the system (e.g., say in finance). And, other than competition, there’s nothing to stop companies from overcharging customers or underpaying staff. Same goes for paying your bills on time. Our system relies upon ethics. The kind your mother taught you. And not all participants comply.

It’s not about building hospitals or funding a shelter, it’s about running a respectable shop. State regulators can’t be everywhere and it’s impossible to plug all the holes. So the economy requires morals. And not just from the top, it’s everyone’s business. People are what keep this system going and when you take riches without responsibility, you’re not up to the job.

Summary

It’s no secret that not everyone is born the same. Some have the “do good in school” gene, while others just don’t. Some have loads of energy to climb a mountain, others don’t. And a bunch of us were dealt a crappy hand. That being said, it’s not the job of industry to solve any of these problems. But when you get into the billions and hundreds of millions, you’ve been more than compensated.

Everyday people don’t like to see opulence when they’re being left out. They too like toys. So this trend against capitalism isn’t coming by way of another system. It’s coming from within. Many who thrive under this current order aren’t worthy of its rewards, and it’s getting noticed.

As for McGill, their tournament has been going on for years and series-to-date, capitalists are winning. But the last couple games have gone to the commies, which might tell you something. Professionals continue to argue and implement change, but a lot of people still seem to be miffed. It sure would be a shame to go against human nature. Then again, isn’t it natural to complain?

Democracy

Over half the world’s countries now operate under some form of democracy. But things haven’t always been this way and most places had to host an uprising to get it. So let’s take a look at the status of voting.

Initially

Initially the world was inhabited by cave people and the toughest guy became boss. After they left, we were ruled by various forms of monarchies. Britain had its kings and queens, Russia its czars and czarinas, Austria and Germany had their kaisers and kaiserins (though women weren’t allowed to rule), and of course China and Japan brought us all those dynasties (with emperors and empresses).

These systems lasted throughout most of history until people finally got fed up. Sure, some of them were good but one-family rule came with two inherent problems: How to kick the bums out? And what if the kid’s a fool?

Democracy

Democracy lets us pick leaders, which is great. It also lets us choose representatives and which ideology we’d currently like to employ. No more incompetent, ruthless bastards for 30 years followed by some idiot kid. So hurray for democracy. But there’s another blessing that comes along—it’s safer for the neighbours.

In a popular interview, President Obama admitted something that’s exceedingly well known. “The longer a dictator stays in power, the weirder they get.” Not all of them. Thailand lost its king a few years back and the country is still in mourning. And the reign of Queen Elizabeth I has gone down as a wonderful time in history. But most of us know that if you’re not continually forced to earn your position, one tends to get kooky. And this weirdness can lead to deviant behaviour, like wanting to go to war just to honour your name.

Alternatives

Anyway, once the monarchy was overthrown not every country acted the same. Some banished them forever, some kept them in a ceremonial position, and some reduced their powers gradually until they became a ceremonial position. But once the crown was gone, nations had only four choices:

  • Democracy
  • Military Dictatorship
  • Dictator-style Communism (e.g., Cuba)
  • Party-style Communism (e.g., China)

Democracy is obviously what we love in the West but remember it’s still new. Part way through the 20th century there were only twelve—with Britain, America, and France making up the big three. (Note: Canada, Australia, and New Zealand were on the list thanks to the Brits.)

Dictatorships are either military based (generally through a coup) or founded on a leader who gains support of the military. These were popular in Central and South American plus Mexico. Dictators would then either leave the economy alone or convert it to communism.

The last option is what Russia did. Host an uprising to bring about a more formal version of central rule. Within party-style communism, the next leader is chosen by the party (what China used to do). Within dictatorial, it goes to a relative (e.g., Cuba).

Note: You also hear the term fascism. It’s supposed to be a dictator supported by the corporate elite but many times it’s just a dictator who didn’t switch to communism. Technically, there have been only three: Hitler, Mussolini, and Franco in Spain. Franco’s story is least known but the best one. When the democratically elected government decided to switch to communism, Franco led the charge against it. Now that’s different—a capitalist dictator fighting elected communists.

Challenges

Anyway, the problem with democracy is it has many requirements. Like, all parties have to be decently qualified. Why? Because people don’t put much effort into their vote so virtually anyone can win. And if elected officials are of poor quality, they can really screw things up. So all parties have to be somewhat good, or at least decently qualified.

Second, adopting countries must learn from the pros. Older democracies have already figured out you need to separate church from state. This means you can’t have a religious party that wants to implement a faith-based constitution. It’s too restrictive for when you educate your people. Third, you need established parties who fight like cats and dogs. Democracy is an exercise in exhaustion. Ideas have to be totally thought out and battled over, and a significant chunk of the population must participate. (That’s why we have lousy dinner parties.)

Plus you must instill a general mindset. People have to go from “Billy’s the boss” to majority rules. Both are natural but “majority rules” is definitely the step up (just watch kids play in a schoolyard). And there’s an established protocol for getting there. First you must get your economy going, then educate the people, and last, build the political infrastructure. But unfortunately, that’s not the way it always works out—most nations have to fight for it.

Summary

If there’s one thing I know it’s that people will fight for freedom. We humans have an internal calling for better. I also know that power doesn’t transfer easily. That’s why attaining democracy repeatedly involves violence. It’s the ugly side of progress (and Canada got lucky).

The easiest places have already been converted. Take Poland—one tribe, one language, one religion. They went from A to B in an historic jiffy. The rest will be more difficult. Like Ethiopia—90 tribes, 88 languages, and 3-4 major religions. Certainly, a tougher situation.

Of the 80 remaining countries most will experience some sort of civil war on their path to the polls. Toss in modern day weaponry and you can picture the rest. And with all the uprisings, occupations, and wars, it’s reasonable to question the worth of it. Are the benefits of democracy worth the costs? Well, when the dust settles it sorts out to this: people get freedom, a higher standard of living, and the ability to live in fairness. Plus every other nation gets to have a friendly neighbour. Which is why you’re having it, like it or not.

Russia

Before the First World War, Russia was a regular kind of place. Included in its past were the likes of Peter the Great, Catherine the Great, Ivan the Terrible, and the great grandparents of a really hot left-winger named Ovechkin. They also had a long history of being ruled by czars.

Their military had saved Europe from Napoleon’s ambitions in the early 1800s, and Russia had freed the serfs (their version of slaves) in 1860. But after heavy casualties in WWI, severe food shortages (caused by the war), and old-style government thinking—it was time for a revolution.

Russian revolution

Like their global counterparts, Russian workers in the early 1900s were fed up with selfish monarchs and capitalists. They’d been hosting strikes and socialist organizations for years, pushing for a better life. Early gains forced Czar Nicholas to grant them a parliament, the Duma, to assist with running the country. But being the obstinate fellow that he was, Nicolas abolished and restarted the Duma a number of times.

In 1917, while the war was still going on, Nicholas was overthrown and replaced by a provisional government (the Duma) made up of mostly liberals. This government was then overthrown, eight months later, by the communist Bolsheviks headed by Vladimir Lenin (John’s evil twin).

Civil war

Because not everyone wanted to be a commie, the revolution turned into a civil war that lasted three years. A number of groups were vying for control but we’ll summarize into three:

  • Bolshevik Reds – those subscribing to the communist beliefs of Marxism
  • Whites – those aspiring to become a democracy with left-wing ideals
  • Loyalists – those who were happy to remain with the czar

Britain’s Winston Churchill screamed for allied support to anyone but the Reds, but allied ambition was drained after the loses of the just fought war. And working class people everywhere were sympathetic to the communist cause. As the war went on, Loyalists got lumped in with the Whites but in the end the communists won.

Lenin and Stalin

Upon retaking power, Lenin was faced with converting a nation that didn’t totally agree with him and his interpretation of Marx (what we now call Marxist-Leninism). He chose to persuade them through a reign of terror. Over the next two years, until his death, and long after by his successor, Joseph Stalin, the communist party imprisoned, murdered, and terrorized its own people through acts of barbarism.

Targets included loyalists, liberals, capitalists, and the religious (since communism abolishes all religion). In total, over 30 million people were killed from a population of 184. (And Nazi Germany learned its tricks of concentration camps from Siberia.)

Post WWII

Like many others, old time Russia was in the empire business. Its empire was one of the world’s largest and, in 1922, it became the Soviet Union (made up of 15 nations—Russia plus 14 others). After WWII, the UN was formed with the intent of ending imperialism. This made Stalin change course. His ambitions moved away from acquiring land to spreading communism.

Because of heavy contributions in defeating the Nazis, a tired world agreed to Russian demands by granting them communist influence over countries they’d taken during the war, plus others they negotiated. These countries were called the Eastern Bloc. They included Poland, Czechoslovakia, Bulgaria, Romania, Yugoslavia, Hungary, and East Germany.  

Due to social uprisings in the above countries and financial instability in the Soviet Union, soviet influence in these areas fell in 1989 and everyone gained back their independence. Two years later, the Soviet Union itself fell, granting the same independence to the nations they’d acquired through their empire (e.g., Ukraine, Georgia, Belarus, Armenia, Lithuania, and Latvia).

Communism

In total, communism in Russia lasted for 70 years. Idealists rejected Western actions to improve worker conditions and introduce a welfare state—believing they could do better. (Remember, Britain was making changes in 1910, so things were well afoot by the time of the revolution.)

So how was it? This great social experiment of equality for all and everyone by their own needs. Horrible. Communism broke the country’s spirit, instilled fear, restricted freedoms, and promoted jerks. Oppression became the name of the game and people were conditioned into an attitude of defeatism. This bred depression, alcoholism, and incompetence. Poland fared better since they maintained much of their religion (social control wasn’t as strong in the Bloc) and they were still Polish (occupied by a foreign land). So they had hope. But Russians brought this upon themselves.

You can’t stifle ambition and expect to get things done. You can’t accomplish much without stability. And you can’t be successful with powerful jerks. One guy said, “You know in Canada how we have community leagues to promote friendship and provide activities for kids? We didn’t have anything like that in Russia.”

Conclusion

Today, Russia is a seven-foot teenager—looks like an adult, acts like a kid.

Germany went through the same process rebuilding its image. Tie yourself to culture and forget about the past. German identity is now focused on cars, good beer, and those funny little outfits they wear in October. Russia is doing the same thing by highlighting its kick-ass vodka, beautiful women, and those really cool Easter eggs.

Most of the world gets it, for we all have blood on our hands. The only way to relinquish your past is to rebirth your nation through a new identity. Germany has become a highly productive, socially minded country, that’s completely different than at any point in its past. Russia is now doing the same, but it takes time for the ugliness to rinse through. Anyone in Germany who remembers the war is now well over 80 and anyone who participated is over 90. Russia has only been free for 26 years.

Russia today is a capitalistic democracy. Yes, many of the elections are rigged, but not all and not everywhere. (The same can be said for most early democracies.) Yes, the economy is mostly run by oligarchs, but again, this is true for most countries coming to capitalism. And yes, many of the jerks are still around.

In order to understand Russia you have to identify with its past. When people say “Russia is,” remember it’s a nation in transition. So Russia isn’t anything for long because it’s a body in motion. And right now, it’s a seven-foot teenager.

Note: For a good book, try The President, the Pope, and the Prime Minister by John O’Sullivan. You can also watch, The Russian Revolution (2017) available on Netflix.