Capitalism vs Socialism

Mr Cullen would do well to follow this short lesson on capitalism vs socialism and the reason one works.

It seems that a 10 year old grasps the topic succinctly, while a history teacher seems not to understand.

Update from the comments in the article;

In his economics text 'Eat The Rich', P.J. O'Rourke distinguishes between the four different ways you can spend money.

1) you spend your own money on yourself. You look for quality and value.

2) you spend your own money on other people. You still look for value, but quality's not so important.

3) you spend other people's money on yourself. Quality - and don't worry about the cost.

4) you spend other people's money on other people. Any old thing will do - and who cares what it costs.

O'Rourke remarks "Unfortunately, most government spending falls into this last category. This is how the grateful citizens of the Soviet Union got Chernobyl."

I suspect that item 4 would also confirm New Zealanders fears over the rampant bureaucracy in NZ and why the government has just taken their long announced tax cuts away, having replaced it with a payroll tax in the guise of Kiwisaver.