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I wish to apologize for taking time to respond to you. I was immersed in a lot of commitments and struggled to find time to develop a befitting response. You will also pardon me as I fail to address you properly, your pen name, as well as the picture attached to your News24 account makes it impossible for me to determine your gender.

Your reply to myself, which was published online by News24 on 3 January 2017, is interesting for me. Following your confession that you have read a few of my articles has shown me that your critique extended beyond the article in question. I will therefore respond with that in mind. Here under please receive my points in reaction to your arguments;

In Paragraph 3, you make interesting observations about the inextricable relationship between states (you narrowly refer to governments) and owners of production, which in this case is a few individuals. But you immediately distort this observation by blaming governments (or states), for the problems of the world.

This observation is problematic in that it assumes that all governments, or states, operate in isolation from external players. The observation is also weakened by the contradiction contained in the statement; The problems of the world are caused by weak governments that are caught up in capitalism.

Looking at your post, it is unclear if you apportion the problems of the world to capitalism, due to weak governments being involved or being affected by capitalism, or whether the problems of the world are caused by weaknesses within governments themselves. But later on, you argue that I must not blame capitalism. The contradiction is loud here.

In your reply, you have been unable to counter my argument that capitalism has failed to solve the problems of the world. This is because there can be no scientific, credible argument to counter my claim. It is impossible to prove how capitalism has improved the lives of the people.

The capitalist project has been characterized by crises since time immemorial. Prabhat Patnaik, Professor Emeritus at the Center for Economic Studies and Planning at Jawaharlal Nehru University, New Delhi, wrote the following in 2016; The thirty-year crisis of capitalism, which encompassed two world wars and the Great Depression, was followed by a period that some economists call the Golden Age of capitalism. Today, however, capitalism is once again enmeshed in a crisis that portends far-reaching consequences. I am not referring here to the mere phenomenon of the generally slower average growth that has marked the system since the mid-1970s. Rather, I am talking specifically of the crisis that started with the collapse of the U.S. housing bubble in 2007-8 and which, far from abating, is only becoming more pronounced.

The current economic crisis, which started in the US, is not accidental, but is a by-product of the fundamental nature of capitalism. The system of capitalism promises all and sundry that all problems will be solved by some invisible hand. That invisible hand was literally invisible when the housing bubble exploded in US in 2007-08. Instead of the market correcting itself, the US government spent millions of dollars to rescue private firms that were affected by the crisis. The US government, in so doing, was involved in a process of nationalization of debt.

Capitalism has failed to solve the problems of inequality, poverty and unemployment. South Africa is a clear case study. Many amongst us are fed the lie that we need a certain level of economic growth in order for the economy to create jobs. That is a lie. Capitalism does not care about alleviating poverty, or creating jobs, or reducing inequality. In all the three cases, capitalism vies for the opposite.

Ina sheer display of the monstrosity of capitalism, in 2015/16 financial year, Shoprite CEO Whitey Basson earned an annual basic salary of R49.7 million, plus a performance bonus of R50 million, leaving him with an annual pay of R100 million. This when ordinary employees of Shoprite take home about R500 per week. We dont care that Basson has worked in that company for 45 years, but this pay is an insult to the many employees, who serve the company as slaves, only for one greedy person to enjoy the fruits of their sweat. This is capitalism.

In UK, it is reported that the FTSE 100 average CEO is paid 129 times more than an average employee. The US, as the ultimate model of capitalism, is the worst. This is where capitalism and its failures can be studies without fail.

Even the educated people you are reffering to, who you state choose capitalism, are slaves of the capitalist project. The all sell their labour to their masters, and receive meagre wages. You can be an investment Broker, Engineer, etc., as long as you sell your labour, you are a slave of the capitalists. Through your labour, companies like PHG make trillions of dollars every day. The cars, houses, expensive watches they flash are nothing but tools of enslaving them further.

You enquired why socialism has not worked. This assertion is flawed and exposes your gross misinformation. Cuba is a socialist country and the system is working, not only for Cubans but for the world. Given its highly advanced education system, Cuba teaches medicine to some Americans who offer medical support in poor communities, thanks to state subsidies. Cuba has doctors, engineers and other professionals working all over the world, including in South Africa. In Cuba, there are no street people, like is the case in America, UK, South Africa and elsewhere.

Another example is China, where communism is practiced. The state, through legislation, policy and intervention, is in charge of the economy. There is no claim of an invisible hand in China as the hand is directly from the Communist Party of China. China is about to surpass US as the worlds largest economy.

The fall of the Soviet Union was not because the system had failed. It was mainly because of the weakening of the party and its infiltration by external elements.

I still maintain, Capitalism has never, and shall never, solve the problems of the world. Socialism is a worthy alternative. Socialism shall replace the greedy, selfish and exploitative character of capitalism

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A reply to No Ohno: On Socialism and Capitalism - News24