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If we want to eliminate capitalism what does that mean exactly? To me Capitalism isn't a thing, it is a theory to explain human behavior. The exact nature of Capitalism has varied from from culture to culture and even within cultures over time. Capitalism in the United States was a lot different in the 1950's and 1960's from the Capitalism we have today. So I would like to understand exactly what it is folks want to eliminate.
First a couple caveats - I think government should regulate the private sector to prevent exploitation or excessive speculation. I also absolutely think Government should manage healthcare. Healthcare and the profit motive are fundementally incompatible.
But beyond health care I have alot of questions about what folks anticipate if we eliminate Capitalism. Here are some that spring to mind.
1. If I want to start a business, can I do it? Do I have to get government approval?
2. If I want to get other people to invest to give me the capital to get the business up and running can I do it? Or do I have to go to government to get funding?
3. Will there be a stock market? If not what becomes of all the money people have invested in the stock market?
4. Will government decide who runs major industries? Will Elon Musk still run Tesla? Or will running Tesla become a poltical perk of some bureacrat who helps the adminstration get elected?
5. Are there other industries besides health care government should manage?
6. With healthcare and other economic activities we decide government should manage, what should governments role be? Micromanaging from top to bottom? Or carrots and sticks (incentives and prohibitions) to guide organizations run by private citizens?
In the development of drugs to treat pandemics we are at the mercy of the private drug companies who have consistently demonstrated profits are more important the people.
Current news reports say the Federal government is going to pay enormous amounts to fund research to help Johnson and Johnson try to develop a Covid Virus cure. Johnson and Johnson says it will be a "non-profit" venture during the pandemic. My question is, who owns the patent after the pandemic is over? I'm pretty sure it won't be the Federal Government. When the next pandemic comes along will Johnson and Johnson use the knowledge and data they develop to negotiate the next big contract while the Federal Government stumbles along in the dark?
We saw the negative impact of profit driven medical research with the ventilator scam recently reported in the news. The Federal government paid a lot of money a decade or so ago to small ventilator company to develop an inexpensive and portable ventilator. The company had delivered a couple of working prototypes. then the company got bought out by a bigger company who demanded more money - probably to cover the costs of them buying out the small company. The Feds paid them more but still the big company evidently just pushed the project onto a back burner - industry insiders say they just wanted to kill a cheaper ventilator that would undermine their products. Why didn't the Federal government sue for breach of contract? Might relate to the fact we have an administration that believes the pursuit of money is sacred. If that contract had been completed under contract we would have a lot more ventilators available today.
I'm no starry eyed believer in governments competence. Bureacracy is always a problem in any big enterprise, particularly government. But our model for drug development, and medical preparedness really needs an overhaul. We are much too accomodating to private enterprises profit ambitions.
When the Federal Government hands out money to pursue a particular project, they should retain the rights to all the work product, including any patents involved, and enforce those rights. It is not a novel concept, the private sector does that routinely.
I'm sure the CEO's of big companies will say they would never agree to work under those circumstances. I say fine. There are a lot of bright, innovative people out there not working for giant multinationals. The Federal Government should be developing a core medical technology competency to manage healthcare in this country, to outsource and manage development of new drugs and technology, by controlling the work product produced from the funds paid to hire research and development.
