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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