Socialism or Capitalism??????

Why to choose one when both are available

On February 29, 2016 the day budget was announced there was a debate
sparked out everywhere that where are we going, towards Socialism or
Capitalism?
First lets begin by defining both of them. Socialism is that economic
theory which believes that each and every means of production, distribution and
exchange should be owned by the society as a whole. Put in simple words this
theory advocates equality and says that all the resources are of and by the
society and so should be owned equally by the society. Capitalism is that
economic theory in which trade and industry is owned by the private players and
is run for profit without any government intervention. Thus this economy works
on the principle of free economy and says that the market will itself determine its
benefit and works on the demand and supply. So this theory does not require
Government intervention.
Now moving back to our original question whether this government is
going towards socialism or capitalism? With the implementation of Dividend
Distribution Tax (DDT) and providing rebate to the 10% slab (A income level of
2.5 to 5 lacs) and concentrating on Agriculture and rural infrastructure this may
seem to be a socialistic budget. Here the question is not towards what we are
moving but the question is where is it required to move. So lets see the other
side of coin. Look into history each and every country which is having capitalism
(Though not complete), did it directly move to capitalism? The answer for most of
them is no. What all the countries do when it comes to development is asset
creation in form of infrastructure which in result empowers the rural areas and
gives a boost to rural demand. In 1950s and 1960s the countries like USA and
China were also facing the same problem i.e. majority of rural population,
dependence on agriculture and unsuccessful urbanization. So did they move
directly to capitalism? No, they did not. For the industries to grow two things are
necessary: 1st infrastructure and 2nd demand. Since demand cannot be created
and is market driven all the countries focussed on the infrastructure factor. After
they provided what was required to the industry these countries moved to
capitalism that too not complete capitalism.
Capitalism or socialism both are extreme conditions. No country can fully
achieve either of them. In the short run or long run they are bound to fail. Take
any country in the world and it is bound to have government regulations may be
less or more, but they do have. So what mistake did India make? In 1950s when
India became independent it had to decide what to do. India went for building
heavy industries and made infrastructure a secondary objective. But soon India
shifted its focus towards infrastructure as the public industries started running
into losses. As a result, it created unemployment because the industries were not
built during that time. And till date the problem is not solved and it worsened
with the increase in population and as a result a situation came when India was
not having funds to run the country even for a week and so it adopted LPG
(Liberalization, Privatization and Globalization). So looking to all this what do we
require. The complete socialization was not successful as clearly evident from
1950 to 1990. We cant afford privatization looking to the income disparity in the
country. So what we require is a capitalist approach with a socialist thought. Yes,
it may seem weird but mixed economy with the dominance of capitalism is what
I feel we require. And this is what the current budget showcased. It focuses on
empowerment of youth and capacity building which in turn will create rural
demand, thus satisfying both the factors required by the industry to cherish. Just
we need to change our mind and consider BOP (Bottom of Pyramid) as an
opportunity for growth instead of neglecting them. India will develop at a very
fast pace and will definitely prove to be a beacon of stability.
https://summit661.wordpress.com/2016/03/09/socialism-or-capitalism

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