Pure socialism doesn't work, because you need capitalism to harness human natural desire to succeed and improve one's wealth and security, plus the built-in self-correction and feedback of a market system, with all its competition, risk-taking and innovation. The people who do this (businessmen and entrepreneurs) are very important and they deserve to make a good profit to reward the risks they take. It is important that we maintain a society where any man or woman can start his own business and have a chance to make it without being crushed by government over-regulation or unfair business competition.

But pure capitalism doesn't work either because businessmen are in it for themselves, they have no interest or incentive in serving the interest of the society as a whole. Market forces tend to play some role in mitigating this, but they are only partially effective because business people (at least the good ones) quickly learn how to get around market forces. (We call this "gaming the system"). They cheat, and cannot be trusted. In an attempt to increase profits, they cheat their customers, their employees, their suppliers and their stockholders, not to mention conduct their enterprises in a manner which is harmful to the environment, both the natural as well as the economic and political environment. Competition is supposed to keep this to a minimum, but businesses often conspire together to fix prices, manipulate markets, and commit other skulduggery to allow them to compete against the society, instead of each other. And they have the money (meaning political power) to do this on a vast scale. Crony Capitalism is the only kind there is. Adam Smith, the man who first studied capitalism in the 18th century, remarked at length on this.

In order to control this form of corruption, we institute laws and regulations to keep businesses from abusing the public, but governments are also open to corruption and tyranny and greed. So we need democracy and a constitution and a free press so we can correct government and keep business under control and the public informed.

This is all very complicated, and it doesn't work very smoothly, but it's not impossible. America has been doing this for over a century now, and in spite of setbacks and occasional backsliding, our system has been able to work fairly well, and even improve, the balance of power between government, the people, and the business community. Its a three legged stool, kick out any one leg and we fall on our ass.

Of course, the system is also unstable. Businessmen are greedy, government bureaucrats are lazy, politicians are power hungry, and the People have a tendency to lose interest when things are going well, or to react irrationally when they're not.

Right now, Socialists believe the business community want to exploit us by operating without any supervision or oversight from the community. Capitalists believe the State is interested in taxing and regulating them to death, which will stifle creativity and productivity.

They're both right.

We have to find a middle ground we can both live with. What we have to keep in mind is what do we have a government and business community for? Is it to create a system to provide for the welfare of the society as a whole? Or a playing field that will allow business men to play the Great Game for their own entertainment and self-actualization?

Capitalists believe the society should be organized so they can operate freely and without restriction, and rely on market forces to curb abuses. The result would maximize prosperity and freedom for everyone.

Socialists believe businessmen can't be trusted, and have to be watched like a hawk or they will quickly find ways to get around market forces and they will either keep all the wealth for themselves while the rest of us starve, or they will drive the economy into the toilet in an orgy of greed and mismanagement.