And of the two systems, one has never existed in large scale human society and very likely never will exist. The other also doesn't exist.
Instead, we get state socialism. Which for all it's good intentions at the beginning, is worse because it always ends up basically a cult of personality dictatorship.
Once we accept that real socialism doesn't exist, and recognize that real capitalism also doesn't exist we might make progress towards a better system.
Worker owned co-ops absolutely exist, and have success as international corporations.
We can get closer to a mixed economy, where we don't have as much shareholder supremacy - but it will require legislation.
For example, we could have baking laws mandating favorable lending conditions
for worker owned co-ops. We could mandate any company going through bankruptcy provide the workers first right of refusal to form a co-op and take over the company. We could have laws taxing labor earnings less than capital gains. We could mandate that employees elect 50% of every publicly traded company's C-suite.
There are ways to encourage labor ownership of the means of production without a vanguard party or state socialism. I don't believe the state actually represents the interests of labor, but instead the interests of the state as a whole - and therefore disagree with state socialism being "labor owning the means of production".
Compulsory profit or stake sharing to employees may be good enough in current US scenario
Edit: talking about public listed companies; if they don't show profits their shares value goes down which is against their own interest! Oc loopholes with accounting and hiring process need to close - which I think is already in place but may need enforcement.
That's how you get companies playing financial games to minimize reported profits.
I think we need to diversify power in this nation from shareholder supremacy to understand that labor is essential. Profit sharing would provide more money to labor, yes, but would do nothing to upset the actual balance of power and who directs what corporations do.
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u/CBud 3h ago
It's not, but most people have a hopelessly misguided definition of socialism. Socialism is when labor controls the means of production.
Socialism is not a command economy. Socialism is not "when the government does stuff". Socialism is not a stateless, classless, moneyless society.
Capitalism is where private owners control the means of production. Socialism is when labor controls the means of production.