CAPITALISM: a system where every individual is allowed, indeed, encouraged, to participate fully in economic life and the marketplace, as worker, consumer, manager and/or entrepreneur, in any combination thereof he or she sees fit.

SOCIALISM: a system where democratic, constitutional institutions provide a framework of law and regulation to prevent Capitalism from its inevitable abuses and instabilities, while encouraging its productivity, flexibility, competitiveness and innovation.

Capitalism need not be its stereotypical image of a brutal, exploitive sweatshop that bleeds workers and consumers dry and benefits only a tiny class of financial aristocrats and their middlemen flunkies. This is the only definition of capitalism accepted by extreme socialists. Socialism need not be its stereotypical image of a teeming hive of identical workers struggling for survival under the watchful eyes of brutal soldiers and a soulless queen. This is the only definition of socialism accepted by extreme capitalists. I reject both, and all those who promote these ideas.

Those who insist on these extreme definitions are obviously more movtivated by ideology and sentimental attachments to adolescent fantasies of self-importance than by the practical requirement of putting together a synthesis that actually serves human needs. Serving human needs is what politics and economics is all about. View with suspicion ideologies based on sweeping theories of history or romantic views of personal self-actualization and individual superiority. Be particularly wary of those who claim special knowledge of "principles", virtue, and revealed truth, sacred texts, charismatic leaders, and nationalistic fetishes. I do not believe capitalism and socialism are inconsistent. I believe neither is workable without the other, unless kept in place by tyranny. This is certainly the lesson of history as I interpret it.

The current mixture of socialism and capitalism now in place in the Western democracies is, in my opinion, the perfect form of government/economics, although it is constantly evolving to meet new conditions, and clearly has setbacks, problems and contradictions, as you would expect any system to have. As you would also expect, there is considerable disagreement as to how and where this balance should be achieved. This is both inevitable, and wholesome.

The future organization and mix of capitalism/socialism will continue to evolve, molded both by political and economic conditions, and by struggle within a framework of democratic institutions. There are no laws of physics in public policy, no rules, no religious commandments. All we have to do is balance what's fair, and what works, as best we can. There is no magic formula, only compromise and negotiation. The people will let you know if they are unhappy.