Can Our Planet Survive Capitalism: Resource Allocation Part 2

In part 2 covering the question, can our planet survive capitalism, I cover the argument on resource allocation in response of what Francesca Fiorentini argues.

The argument relative to GDP and production in general from what Francesca is saying is that overproducing creating waste is why we need to overthrow capitalism. The problem with this argument is that we don't live under a capitalist system, we live under corporatism and socialism through socialist government interventionist policies resulted in the surplus waste problems, as well as the resource allocation problem we see today.

The way Francesca is arguing is almost as if to say because production goes to waste due to inefficiency, then we need to drastically cut back on productivity altogether. It sounds almost as if she is arguing to take us back to a period of life before the Industrial Revolution.

Again, you can check out both videos I made on the economic calculation problem, which is the resource allocation problem, in both parts I covered on profits and losses and on the variety of options where I go more into detail on this subject matter:

• Economic Calculation Problem: Profits & Losses
https://www.youtube.com/watch?v=mVbbFVKWdhI

• Economic Calculation Problem: Variety of Options
https://www.youtube.com/watch?v=bFoqXD_o6Wc

The economic calculation problem (resource allocation problem) is primarily the reason why socialism is so inefficient, why the Soviet Union resulted in such waste as both Soviet Union economists Shmelev and Popov pointed out themselves. The problem cannot be solved by technology as no technology can read the human mind and humanity is never going to accept living in an Orwellian surveillance state, we're already fighting for our liberty from all of that today.

So, even if we were to go along with her argument about climate change, how would socialism solve the problem? It would create an even GREATER problem, in fact, a problem so cataclysmic it would result in most of the earth's population dying of starvation, they would no doubt waste more resources on a massive catastrophic scale, quite convenient that given the fact her argument is against producing waste.

So when she asks can our planet survive capitalism, the answer is yes, because the problem isn't productivity to help improve people's material standard of living, the problem is what you do with those resources and how much you use; the problem is living in the absence of capitalism that as a result of price controls by governments, it has resulted in such resource misallocation.

There is a reason why Hong Kong with practically no natural resources turned from a tiny small fishing village to becoming one of the richest cities in the world and when you contrast that to socialism of Venezuela or India, there's a reason why they were living dirt poor despite having used up large quantity of scarce natural resources.

As I reiterate, it is important for us to look after our planet to reducing waste and managing how we use resources, as well as finding ways for cleaner, more efficient ways of using energy, but that's not an argument AGAINST capitalism, that's an argument FOR capitalism.

So can our planet survive capitalism? Yes, it is socialism that destroys it.