It’s hard to find sources on this, but many of my ideas have been suggested by economists and think tanks before, I just combined the ideas that I think would work best. I think there are benefits to both capitalism and socialism, but the excesses on both sides can be harmful. Too much capitalism or too much socialism can lead to different bad forms of totalitarianism in my view. I think proponents of both tend to idealize their systems and ignore some of the inherent flaws.
I believe there needs to be a balance between the two, combining their strengths. Capitalism mixed with government investment in key areas is a great way to advance technology, for example. Capitalism is very effective at generating wealth, but without a social safety net enforced by the government, wealth inequality becomes such that the very wealthiest consolidate so much power that they are essentially able to write the rules for everyone else, in the form of local laws as well as international regulations (think trade deals). I basically think a stronger form of global governance is needed. Here’s a brief list of some of the things I think should be implemented on an international level to deal with poverty:
1) Eliminate all government subsidies for all corporations. This would have to be enforced internationally, but would allow small business owners and producers in all countries a more level playing field, because as of today they aren’t able to purchase the political influence major corporations can.
2) institute a global currency. I think there would be many benefits to doing this, namely wealthy countries wouldn’t be able to use their currency and foreign exchange rates to dominate weaker countries. Here’s an article on the subject that deals with what I’m thinking of.
3) eliminate all trade laws, tariffs and excise taxes. These laws mainly serve to protect corporate interests and the interests of the wealthiest countries and companies that write the trade laws. Eliminate them, create true global competition.
4) create a flat, unavoidable corporate profits tax, as well as personal income tax, worldwide, eliminating corporate inversions and tax shelters and havens of any kinds. Make sure all global money is taxed in one form or another. 60 minutes just did a big investigation into how the rich are able to shelter their money from taxes due to weak laws.
5) provide a basic social safety net that includes food, shelter, clean water, health care, and education to everyone on the planet. Pay for it with the money raised from eliminating tax shelters and corporate inversions.
6) Find a way to reform patent law so price gouging doesn’t happen – either buy out the patent of successful medicines or pay companies a bounty for succesfully coming up with a cure, like an X-prize. This model can be applied to government funded research in all areas, especially green energy technology and medical technology.
7) provide a minimum income (cash payment) for everyone on the planet. This website provides a good explanation of the benefits of a basic income.
8) any money you make on top of that and the taxes you pay, you get to keep
9) set a limit on the ratio of how much more an executive can make than the lowest paid worker.
10) require corporations to give a share of the ownership to the workers, so that the workers have voting power in the companies. This is basically a lighter version of what is known as anarcho-syndicalism.
11) Create a global set of environmental regulations and labor laws that include jail time for executives that violate them.
12) Some form of debt forbearance or forgiveness for countries at the bottom of the economic system.
Obviously, these ideas would require some radical changes to be made. I think it’s time to make globalization work for the people instead of the elites. Due to the rates of technological change and interconnectedness of markets, it is in my view impossible to stop globalization or capitalism, I think it needs to be directed to more positive, just ends.