I Love Berlin
The collapse of the Berlin Wall is more than a collapse of a physical wall. It also marked an ideological triumph of democracy as political governance over communism. On the economic front, centrally planned economy has also taken a beating to be replaced by a capitalistic market economy.
This dual transformation on both the political and economic front has been motivated by a lack of freedom to choose and the dismayed outcome as perceived by the masses. On the economic front, centrally planned economic model failed to deliver expected economic imperatives for the masses with many living below or near the poverty line. A hungry stomach, limited personal freedom and practically non-existent choice in political leadership all contribute to vital ingredients for a revolutionary change.
The collapse of the Berlin wall also signifies the start of the end of the cold war between the super powers. Suddenly, the hope of new world order with an unimaginable level of peace and prosperity would engulf our universe. In reality, the world has seen the axis of conflict moving from the political and economic to one that comes with a religious/racial twist. The challenge has also moved from a national scale to one against a covert global force that has no national affinity like the Al-Queda. 911 has also affected the economy badly putting many economies into a tail spin with rising unemployment and disruption of social order as a consequence.
What has possibly gone wrong and how can a period that could herald us into the threshold of a Nirvana turn out this way?
Economic Nirvana
Milton Freeman, a strong crusader of the capitalistic system from University of Chicago once said that while the capitalistic system is not perfect, it is the most ideal system. Freeman is very right in pointing us in the direction but many have failed to see the limitations of the economic system.
Jonathon Sack, a respected Jewish rabbi summed it all up that while the capitalistic system is very efficient in ensuring optimal production of goods and services but not so effectively in the distribution of wealth. In other words, what is demanded would in due time be translated into reality at the optimal price. This is well and good and result in optimal production of goods and services. Being able to be efficient at producing, how then do we decide who gets what? Is the distribution of this wealth an economic or political issue? It is most probably a joint responsibility and can never be taken in isolation.
Political Haven
There has never been a doubt that any country that is left to run on only economic basis would in due course crash out. The economists would like us to believe that they are THE answer to the problem of this world. We recognize that economics play a key role in any society but it does not have the answers to all societal issues.
The politicians generally have a greater allure of altruism and human equity. While the economists do a very good job in making the country rich, the same cannot be said of distributing the spoils. Since politics is defined as the art and science of power distribution in a society, does that mean that we should surrender all allocation of wealth to politicians and leave the generation of wealth to the economists? The answer is a flat no because the two issues of production and distribution are deeply inter-twined like a co joint Siamese twin. Separating them would almost result in certain death for both in most cases. The centerpiece of the democratic system is a deep sense of human equality based upon a one man one vote system. In stark contrast, vote in a company board room is normally not centered upon one man one vote but rather one share one vote. Which then is more equitable? I do not have the answer to this all too difficult question but it sets us thinking about the issue of equality on a personal basis and is a very rough social compass to steer our actions.
Where is Nirvana?
I do not have the answer to this question as it is not a straight forward one. We know for a fact that democratic capitalism is no nirvana although is it most probably the most practical system. With this in mind we would have to be more pragmatic than purist in our application of democratic capitalism in our society.
lkypeter@gmail.com Safe Harbor. Please note that information contained in these pages are of a personal nature and does not necessarily reflect that of any companies, organizations or individuals. In addition, some of these opinions are of a forward looking nature. Lastly the facts and opinions contained in these pages might not have been verified for correctness, so please use with caution. Happy Reading. Peter Lye (c) Peter Lye 2014