As individuals, we are born socialist, raised capitalists, and in the end, die as socialist. Unfortunately, most people have no idea what either of those terms really means.
In the United States, our political battles are over what we "feel" it means, "believe" it means, "think" it means, and through common sense, "know" it means. Yet survey after survey indicates that very few American citizens actually "understand" what it means. The result is cultural friction and fragmentation.
Generally, we tend to accept that capitalism and socialism emerge when they are given their names in the 1800s, however, the practices of what we call capitalism and socialism were actually born thousands of years before.
As a species, our economy begins with the currency of calories. As gatherers, we grow our families, clans, and tribes by sharing the excess of what we find with the intent of developing and growing the population.
Even though we evolve to be hunters, herders, farmers, and makers, we continue to feed our children, educate them, develop their capabilities as individuals - before we send them to work. We share with our neighbors and care for them when they need it. This investment in human capabilities of our population is what we call socialism. It has always centered around the basic physiological needs of food, safety, health, and education.
The investment in the growth of the economy - beyond the physiological needs - is what we call capitalism. It was the child of a maturing practice - local markets. As villages began to trade with other villages, it was the investment of the population's excess production that was used to grow the economy.
Even today, investing in the capacity of the economy and investing in the capability of the economy are two very different things. Increasing capacity is economic growth. Increasing capability is economic development.
With the fight to end slavery, our social perspective changed. In the late 1800s, the emergence of big business was the child of both capitalistic growth and socialistic development. When a technological breakthrough, like railroads, electricity, automobiles, airplanes, radios, television, and telephones, occurs - it gives birth to a new industry - born without a supply chain. To survive the industry must build it.
Not only investing in new businesses but also investing in new capabilities. As a nation, our understanding was changing. University-based business schools advance our understanding of management; Medical schools advance our understanding of medicine. Agricultural schools advance our understanding of farming and ranching.
History has shown as monarchs, oligarchs, and dictators extract wealth from the economy, investment in development stops (food access, schools, healthcare), and investment in growth stops (local business). As hunger and homelessness increase and the basic needs of the population go unfilled. The economic resources of the population are redirected to both internal and external conflict.
The difference between the old world civilizations of Europe and the new world civilizations of the United States, they have lived through this before and discovered that capitalistic growth and socialistic development are two sides of the same coin.
