Socialism is the solution

 

As published in the St. Paul Pioneer Press, June 30, 2010

Socialism is the solution

"Out of work and running out of time" (June 25), about unemployment benefits ending for a million people, should prompt us to ask what causes unemployment, and why, in the 21st century, can we not manage an economy that provides full employment.

The answer is that capitalism is an antiquated, irrational system that does not provide a mechanism to plan a stable, sustainable economy. Capitalists compete to drive one another out of business, exploit the cheapest labor and take the highest profits possible. The outcome of this usurious behavior is periodic economic crisis, layoffs and needless worry.

There is a solution: socialism. With socialism, workers — white and blue collar, through democratic public entities—would own large corporations and plan investment of capital and manage production to guarantee full employment.

Such planning is not any more difficult and certainly technologically easier than producing computer chips. When a majority of workers realize unemployment is a product of capitalism, we can choose to upgrade our economy to socialism and end unemployment.

Wayne Nealis, Minneapolis

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Investing in a football stadium vs. value producing jobs

I am not a football fan, but I appreciate the sport and I am glad that Minnesota fans have the Vikings. It is unfortunate, however, that the state is being squeezed to spend hard earned capital on a stadium, instead of using the capital to stimulate investments in value creating manufacturing or agricultural enterprises.  Any investment in entertainment, football or otherwise consumes capital.  It does not create new value—it just moves money around.

Minnesota has been losing high-value, capital creating industries for a decade or more.  Ideally, it would be smarter to invest public money to entice a global vehicle producer to keep the Ford plant open, or help grow an alternative energy equipment industry and world class manufacturing firms. Imagine the potential return on investment if the hundreds of millions that might be spent on a stadium were instead used to constitute low-interest, revolving capital pools to upgrade our state’s capacity to create value.

Then some years down the road when our investments have paid off and new companies are growing and new products are flowing into world and national markets we could build a fine looking, world class stadium.  When completed we could gather round, pop open a beer and toast to a job well done.  But instead we will probably buy a stadium and become poorer. 

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