Friday, April 25, 2008

I Want You - for Capitalism

I always smile to myself whenever people talk about the economy. It is inevitable that we are expected to conflate economic growth - in the national sense - with individual well-being. In a very real and operative sense, we are repeatedly told (and we eventually come to believe) that "a strong economy' means great things for everyone. Every once in a while, however, we See a glimpse of something quite different.

I found this article very interesting, but not for the reasons Hitchens may suspect. My interest comes from the pre-amble, quoted here:

The stirring news—that the dockworkers of Durban, South Africa, had refused to unload a shipload of Chinese weapons ordered by the lawless government of Zimbabwe—made me remember very piercingly how good it sometimes felt to be a socialist. Here's a clear-cut case of solidarity and internationalism in which the laboring class of one country affirms the rights—"concretely" affirms the rights, as we used to say—of its brothers and sisters in another country. In doing so, it improves the chances of democracy worldwide. This is how socialism began, with Karl Marx and his allies organizing a boycott of Confederate slave-harvested cotton during the American Civil War, and however often a thieving megalomaniac like Robert Mugabe claims to be a socialist, there are still brave and honest workers who, by contemptuously folding their arms, can deny him the sinews of oppression.

Apparently, only Socialists care enough about their fellow man to do something that is so obviously anti-capitalist. We know that the US economy is only too happy to supply weapons to dictators of totalitarian regimes - just where did Saddam get that poison gas, anyway? Perhaps Indonesia simply found the weapons they used to commit genocide in East Timor?

This simple, yet obvious analysis sets the powers of economic growth and individual well-being in direct opposition to one another. This should be obvious to anyone with eyes, ears, and a pulse, but I am certain that a poll of average Americans would show that an overwhelming majority of people think that economic growth = more individual well-being. These same people will shake their heads at the mis-guided Socialists, who have the temerity to look at the welfare of their fellow human as something that matters. Russia, Cuba, Venezuela, and other Socialist governments do not have nearly the economic growth that exists in the US, they will charge.

Well... guilty, I guess.

If we look a this comparison of GNP per capita numbers from 2005, we see the US is 6th at $43,743 and Cuba is 167th at $996 - a laughably ridiculous comparison. However, when we look at individual well-being, we see something completely different. Citing the references that I used in this post, we see the following:

Cuba’s achievements in social development are impressive given the size of its gross domestic product per capita. As the human development index of the United Nations makes clear year after year, Cuba should be the envy of many other nations, ostensibly far richer. [Cuba] demonstrates how much nations can do with the resources they have if they focus on the right priorities – health, education, and literacy.-Kofi Annan, Secretary General of the United Nations

Cuba has done a great job on education and health and it does not embarrass me to admit it. -World Bank President James Wolfensohn

The health system in Cuba guarantees accessibility to the entire population, is free of charge, and covers the spectrum from vaccinations to sophisticated interventions. The results are impressive: Cuba’s health figures are on a par with developed countries that have 20 times the budget. The country is experiencing a difficult period because of the collapse and loss of support from the Soviet Union; over 30 years’ trade embargo by the United States; and the gradual change from a centrally planned economy towards more of a free market system. Shortages are experienced in every sector, and maintaining health care services at the current level is too expensive. Doctors and nurses continue to work towards the goal of health for all Cubans, even though their salaries are minimal. Signs of negligence or corruption, often seen in other socialist countries where incentives for output are lacking, are unknown. Topics such as family planning and AIDS deserve immediate attention. -Hans Veeken, Letter from Cuba in the British Medical Journal

If left-right prejudices really are as redundant as the prime minister reckons, his best-advised policy shift should be rather different. Within reason – and though hell will freeze over, while pigs cruise over Downing Street – he should go Cuban.-John Harris, BBC Newsnight report

In this, we see that Cuba, which trails the US GNP per capita by a factor of 44:1, is able to provide phenomenal human services. Everyone can actually get quality health care, for example:

"The health system in Cuba guarantees accessibility to the entire population, is free of charge, and covers the spectrum from vaccinations to sophisticated interventions."

Individual development is also phenomenal:

"As the human development index of the United Nations makes clear year after year, Cuba should be the envy of many other nations, ostensibly far richer."

How can this be? Certainly, Capitalism provides the greatest opportunity for individual development... doesn't it?

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