IncelKing
Chaos is a laddER
★★★★★
- Joined
- Jan 7, 2019
- Posts
- 9,564
Communism works well in theory. It is the natural state of the economy. Just think back to hunter-gather tribes in pre-civilisation times prior to the beginning of the agricultural era. Individual members of the tribe would go out to hunt/forage for food and at the end of the day would come back and "collectivise" their earnings as a tribe, irregardless of any individual's success or failure in making earnings because the members of the tribe knew that they would have greater chance of survival if they worked together as part of a group. This is because if they worked as part of a group, the expected value of their earnings would be the same as if they worked individually, but the standard deviation of their earnings would be much smaller which means there is less risk of getting no food/not enough food when working together. As the old saying goes "When winter comes, the lone wolf dies but the pack survives"
This is due to risk diversification. Instead of each person taking their own risk as to whether they get enough food or not FOR THEMSELVES, they combine their risks as a tribe resulting in less risk as to whether THE TRIBE gets enough food to distribute equally to everyone. Risk diversification is observable in the finance sector. For example, instead of investing in only shares, an investor may invest the same money distributed across a portfolio of different asset classes (bonds, shares, property etc.) in order to reduce overall risk.
The main shortcoming is that communism grants the government unimaginable power. The problem with power is that it corrupts human nature. Even a good, innocent person can become a tyrannical murderous dictator if given enough power because it distorts a person's reality when they realise that they literally have the ability to influence or control THE LIVES of those beneath them. Realistically communism is dangerous for society seeing as though given the right amount of power, a human being can become A LIVING GOD and can literally choose who lives or dies. So if the power is not abused then communism would not just be perfect in THEORY, but also in PRACTICALITY.
This is due to risk diversification. Instead of each person taking their own risk as to whether they get enough food or not FOR THEMSELVES, they combine their risks as a tribe resulting in less risk as to whether THE TRIBE gets enough food to distribute equally to everyone. Risk diversification is observable in the finance sector. For example, instead of investing in only shares, an investor may invest the same money distributed across a portfolio of different asset classes (bonds, shares, property etc.) in order to reduce overall risk.
The main shortcoming is that communism grants the government unimaginable power. The problem with power is that it corrupts human nature. Even a good, innocent person can become a tyrannical murderous dictator if given enough power because it distorts a person's reality when they realise that they literally have the ability to influence or control THE LIVES of those beneath them. Realistically communism is dangerous for society seeing as though given the right amount of power, a human being can become A LIVING GOD and can literally choose who lives or dies. So if the power is not abused then communism would not just be perfect in THEORY, but also in PRACTICALITY.
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