Capitalism, Socialism and Democracy, Essay Example

This exam will review the following questions from the perspective of Schumpeter (2003). What changes in society does Schumpeter see as necessary for the success of socialism and how will they come about? Will these changes affect individual liberty? In what ways does he shift the definition of democracy and, in so doing, does he succeed in showing that socialism need not be inherently democratic? According to the view, what is the connection between democracy and freedom, if any, specifically economic and political freedom?

What changes in society does Schumpeter see as necessary for the success of socialism and how will they come about?

In the circumstance of developed socialism, the challenges which include the ¨socialization after the act¨ to be addressed are not without resolution. The developed characteristic which would take place with the success of socialism details that socialism would be a widely accepted institution and that all of the members of the social strata would be cooperative. . The effective application of socialism would be reliant upon the enacting of constitutional amendments, which would be accomplished in a passive manner, without a disruption in the legal continuation of systems (Schumpeter 221).

It is theorized that the members of society would comprehend the quality of the transition to socialism. Even the majority of members who would be in discord with the transition to socialism would demonstrate tolerance of the change. There would be no amazement with this transition as it would be completely rational. None of the members of society would perceive that their existence was coming to an end (Schumpeter 221).

In order for socialism to succeed as an economic, political and social institution, a revolution may not be out of the question. The characteristic of the potential for a revolution does not create a situation which imperils the members of society (Schumpeter 221). The concurrence for the need of the implementation of the political, social and economic institution of socialism would diminish the potential of an organized movement that would be in opposition to its establishment. This characteristic would be attributed to a national, economic, social and political party which would be composed of responsible and experientially knowledgeable men. These men would be applied toward the leadership of the socialist political and economic movement in order to decrease the effects of the cultural and economic shock of the transition toward socialist change (Schumpeter 221).

Will these changes affect individual liberty?

This political and economic party of men would be facilitated into the leadership position by the capable commercial and public service bureaucracies which are accustomed to receiving mandates from the legitimate authorities. These men would not be servants of the interests of the capitalist institutions (Schumpeter 221).  In order to accomplish the success of socialism, the challenges which are associated with the transition to socialist administration prior to the implementation of the new party would not disrupt the operators of the agricultural concerns. The disruption of the operation of the agricultural concerns would be harmful to the establishment of socialism. The interests of the agricultural concerns are composed are the peasant and the farmer class (Schumpeter 221).

The agricultural media applies the land, labor and equipment as their means of production. The Russian agricultural model is not applied globally; however, there is no other class which has as much disdain for the expansive scale industrial concerns as the members of the agricultural concerns. . The economic, social and political party which is delegated the responsibility of maintaining the socialist function of the state may also be anticipated to cause the conciliation of the other types of producers. These other categories of producers may be the small scale industrialist and the retailers who may continue to operate in order to accrue financial gain. The small retail concerns may be anticipated to continue to operate for financial gain in segments of the economy which are monopolized by the socialist state (Schumpeter 222).

At the other extreme of the scale are the characteristics of the individual who executes the endeavors which are practiced individually. These are the members of the administrative class whose endeavors would be effectively managed. This would be performed in the context which had been mentioned with reference r to the peasant and agricultural concerns in order to deter any economic disruptions and the political implications which would result. A severe implementation of the egalitarian goals may ensue in political and economic chaos (Schumpeter 222).

The interests of the capitalist banking class could be detailed as being the bond and stock holding concerns of society. The bond holders are perceived as the bankers who administrate insurance policies and mortgages. The puritan socialist is only aware of the rules of organization which govern the administration of socialism. In the context of the rules which govern the political, social and economic rules of socialism, it would be considered that the group of bankers who have become immensely wealthy at the expense of the masses would anticipate a surprise. In consideration of the developed aspect of capitalism, this group of bankers may compose a consensus of the electorate who would not be in favor of the confiscation of their assets (Schumpeter 222).

It is not important to consider that the socialist government would perceive the need for confiscating the assets of the banking class without providing compensation. If there should be a vote which is held by the people in favor of the confiscation of the assets of the bankers, it would be in conformity with the ethical principles of socialism (Schumpeter 222).

In what ways does he shift the definition of democracy and, in so doing, does he succeed in showing that socialism need not be inherently democratic?

The members of the party which is elected to represent the social, economic and political interest of the people would be anticipated to supplant the electorate power of the banking class, while simultaneously allowing the members of the banking class to maintain revenue of the selected average of previously assessed dividends. This economic, political and social change would not cause an unbearable financial load on the socialist system. The socialist government could apply the application of private accruals in order to carry the economic and social burden of the members of the banking class. The restriction over time would be attained by converting all of the dividend and mortgage payments which are achieved by the members of the banking class to be completely transformed into annuities which have defined and limited terms. There would be an effective application of the revenues which are derived and the inheritance tariffs which would be used in order to provide conclusive benefits prior to their being permanently eradicated (Schumpeter 222).

Democracy is a political method (Schumpeter 244). The continuous loyalty to democratic principles is what defines democracy. The people in the definition of the political, economic and social constitution may choose not to include slaves or other non-citizens in the application of the constitution. Distinct groups have considered themselves to be the constitutionally directed people in varying historical contexts of the formation of national constitutions. Discrimination will always exist in democratic societies. Social, economic and political fitness may be associated with those considered to be the people to whom the national constitutions are directed (Schumpeter 246).The manner by which discrimination in democracies can be overcome is to erase the concept of government by the people and to replace it with the concept of government which is established by the approval of the people (Schumpeter 246).

According to the view, what is the connection between democracy and freedom, if any, specifically economic and political freedom?

The democratic form of government is transformed into the autocratic form of government. This is demonstrated by the presumption that the governing leader prevents undesired competition by the application of legitimate force. This aspect demonstrates that there is no ideal form of democracy. There is a correlation between freedom and democracy. Democracy is inferred by the production of liberties. There is no government which facilitates the complete freedom of speech and expression. There is no government which completely prohibits speech and expression on behalf of its constituents. Democracy can be perceived as an extent of freedom (Schumpeter 272).

The correlation which is presented between freedom and democracy is not completely strict and can be adjusted.  In a democratically formed government, there exists the capacity of dissolving the electorate. In the same manner that the leader can be installed into a government, a leader can also be removed from office if the electorate deems its necessity (Schumpeter 272).The primary operation of democracy in the vote of the electing constituent is to produce government. This infers the election of a whole set of individual officials. This activity is the primary characteristic of a regional government. In the consideration of national administrations, the function of government is making the decisions with regards to which the directing person will be (Schumpeter 273).

There is only one nation where the popular vote is taken into account in order to produce regional and national leaders. This model is the United States. In other circumstances the government is applied in order to select a governing body or parliament. This governing body or parliament has the function of choosing the government which is given. The leader of the government is chosen by parliament (Schumpeter 274). The economic forces which are hesitant to institutional change are required in order to maintain the speed of the institutional change and sustain the change within safe parameters (Schumpeter 427) The members of the banking class which have been previously mentioned are a prime example of the manner by which the members of the socialist political, economic and social system would be applied in order to sustain the transition toward an effective socialist regime.

Works Cited

Schumpeter, Joseph. Capitalism, socialism and democracy (3^rd edition). London: Routledge, 2003.Print.