Sunday, January 12, 2020

Why Should Small Business Owners Support Socialism?


Why Should Small Business Owners Support Socialism?
An Interview with Wolf Larsen
from the book Capitalism Sucks!


Question: So why should small business owners support socialism?
Answer: Under capitalism big corporations are constantly putting so many small businesses out of business.

Q. But isn't that just the way the market is?  Perhaps big corporations are more efficient than small business, and that's why big corporations push out smaller businesses?
A.  In some cases that may be true.  However, in other cases it may be that the big corporations engage in unfair practices – and then small businesses go under.

Q. I thought that socialists were hostile to business.  Under socialism will there be small businesses?
A.  Of course there will be small businesses under socialism!  Particularly if Trotskyists are in power.  I'm not so sure about the Stalinists, many of them have weird ideas.  But Trotskyists believe in helping small business.  And under socialism small businesses won't need to worry about being pushed out of business by big corporations because there will be no big corporations – under socialism all the major corporations will be nationalized.

Q. Under socialism will smaller businesses be nationalized too?
A.  Certainly not.  Only major industries like steel, automobiles, airplanes and banking will be nationalized.  Socialists believe that small business has an important role to play in the economy, and that small business should be encouraged.  Under socialism small businesses will qualify for low-interest loans.  Under capitalism – in contrast – banks often do not want to give out loans to small businesses.  Under capitalism interest rates go up and down like crazy, and often interest rates are ridiculously high.

Q. But won't socialism hurt entrepreneurship?
A.  On the contrary socialism will be good for entrepreneurship.  Socialism will encourage entrepreneurship.  Under socialism like I said there will be low-interest loans available to small businesses.  If a person has a dream of opening up a small business they won't need to worry about being squashed by big corporations because there won't be any big corporations.  Big corporations are the enemy of entrepreneurship.  In addition, the general population will have more time and money to spend in small businesses.  Minimum wage will be doubled.  Everyone will have the right to a job.  Workers will have the 30 hour work week.  Affordable quality housing will be a right, as will free quality child care and free quality medical care.  As a result, the majority of the population will have more free time and more disposable income than ever before.  That will be great for the bottom line of small businesses!  In addition, the boom and bust cycle of capitalism with its horrible recessions will be history.  Under socialism the economy will be far less erratic.  And that will be great for small businesses – because all these recessions under capitalism force many small businesses to close.

Q. But what if a small business person becomes rich?  What will happen to them under socialism?
A.  Under capitalism most small business people work hard but they never become rich.  People open small businesses for various reasons, but a common reason is that some people want to be their own boss.  However, the reality is under capitalism the vast majority of small business people never become rich.  They work hard.  They get by.  Under socialism the majority of small business people will be better off than they were under capitalism.  However, it's impossible to make everyone happy all the time.  Under socialism there will be no multimillionaires.  For example, let me explain a scenario that could very well happen under socialism.  If someone owns many many McDonald's franchises then that person will lose all but one of their McDonald's franchises without compensation.  (Billionaires & multimillionaires will not be entitled to compensation for seized businesses under socialism.)  Anyway, if the Socialist government doesn't want to be bothered with the McDonalds restaurants then the rest of the McDonald's franchises would be distributed to others.  Socialism will destroy the big businessmen and that will create many opportunities for small businesses. 

Q. Why would a socialist government distribute those franchises to others? 
A.  Number one to create more small business people, which is good.  And number two a socialist government will not be able to trust multimillionaires.  In the past multimillionaires have financed counterrevolutionary movements that have caused the lives of so many workers.  The fact is multimillionaires are a threat to both workers and most small business people.  Multimillionaires would most likely want to bring back capitalism, and they might finance violent counterrevolutionary movements.  In order to prevent that kind of bloodshed and chaos a socialist government would have to make sure that there would be no multimillionaires. 

Q. But don't you think a change from capitalism to socialism could put some small businesses out of business?
A.  That's possible.  But I think that the change from capitalism to socialism would be beneficial to most small businesses.  In addition, a socialist government would help out small businesses with low-interest loans that would help them make whatever changes necessary to be prosperous in a socialist society.

Q. What about the professionals?  What will happen to the professionals under socialism?
A.  It depends on the profession.  Remember, under socialism you're paid according to your work.  For example, a doctor will make more than a clerk, because being a doctor is a very important skill.  However, everyone will make a decent wage.

Q. But I still think that socialism would hurt innovation and therefore hurt small business.
A.  On the contrary the opposite will happen.  More people will have more money than ever before and there will be more prosperity and leisure time than ever before so that people will have more time and more money to spend in small businesses.  Right now the corporations are crowding out small businesses left and right.  Landlords often prefer to rent a storefront out to the branch of some big corporation then to some small business.  For this reason and many others it is often difficult for small businesses to survive under capitalism.  Small business will thrive under socialism.

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