Private business is not Capitalism yet. It existed when people lived in tribes.
Private business is also called private production.
Private production is when a person owns his own business. For example, in a village a fisherman goes fishing, a hunter goes hunting, a peasant runs his farm, a builder builds houses, a seller sells goods, etc. After their work, they exchange the results of their labor for goods or services with the help of money. When the fisherman is fishing, he cannot build a house for himself, but after accumulating the right amount of money he can buy it. Everything is fine when all people own their own businesses. Everyone earns money by doing their own job.
The problem starts with population growth, competition, and other reasons, when some people cannot own their own business anymore. They have to apply for a job to other businesses.
Private businesses start profiting from the work of such people and get richer, and those who cannot own their own business cannot get out of poverty. The unemployment problem leads to another one - the exploitation of man by man, also called voluntary slavery - when one person is forced to work for another person, but does it willingly, in our case because of the unemployment. This leads to the division of society into classes - the rich and the poor. Now the business owner may or may not work, hire a manager who will manage his business, and while playing golf he becomes richer and richer due to the huge number of people who work for him to make him rich. That is, people themselves become a tool for enrichment, as a shovel with which the business owners throw money in their own pockets.
But, this is not Capitalism yet. All this existed long before Capitalism in Slavery and Feudalism. Capitalism is much worse, and it is discussed in another paragraph of our platform.
As we can see, the problems arise in a society with its growth, and that is when the social production comes to the rescue, which is an integral part of Socialism.
Social production solves two problems - the exploitation of man by man (voluntary slavery), and the problem of unemployment - but this is not Socialism yet.
How Social Production Saves Society
Society takes all production into its own hands. The main goal is not just to ensure the exchange of money for goods and services between people, but also to eliminate the unemployment. Instead of different businesses belonging to different people, now there is only one social corporation (state corporation) that incorporates all businesses of the country. The role of the owner of each business now play directors or business managers - director of a factory, plant, store, etc.
Every person has a job now, and receives a salary depending on the job he does. Now, everyone gets paid only for the work he does himself. There are no "middle men" called business owners, who make a lot of money because 1000 of poor people work for them.
The efficiency of work does not change, because the more and better the person works, the more he earns depending on the job he does. If the job is associated with more risk, or greater physical or mental efforts then people earn more. And if they work poorly, they get fired, and with a poor resume it is more difficult for them to find a well-paid job. One can end up working as a janitor. So, the incentive to work better remains.
Salaries are set by the society itself, depending on the work people do. There is a difference in salaries, but not huge. Even if we assume that the mayor of a city, or director of a factory, do more important work than an electronic technician, the difference between their salaries is not astronomical. It’s not like the mayor wears a watch for $ 1 million, and spends his vacation on expensive beaches abroad while doing almost nothing, while other people can’t find a job, or earn pennies. The amount of work people do is about the same in all economic systems, so salaries in a civilized society must be about the same too.
Salaries tied to the monthly basket of goods and service consumption of an average human being. Prices for goods are regulated so that a person can buy everything he needs every day, and save money for a rainy day.
Therefore, in social production society, everyone always earns enough money, even an office cleaner. Not like in a society based on private property, where a few people have a lot of money and most people live from paycheck to paycheck.
In social production society, housing, health care, and education can be totally free and are eliminated from price control, so the task becomes easier. Only consumer goods remain, such as clothing, food, machinery, etc.
Issues of innovation and the development of new technologies are also not a problem in such society, since all scientists and innovators are encouraged financially. Plant directors are also encouraged to implement them.
As we can see, a social production society is aimed at justice, not wealth. Slavery system allows people to become wealthy with no limit, and people can own not only airplanes, castles and yachts, but the most expensive thing in life - human life, or a slave. But slavery is most unfair society of all. Therefore, the question is not about wealth, but about justice. Although, having free housing, free education, free health care, including a dentist, a stable job, a risk-free state bank with guaranteed annual interest rates, a guaranteed retirement, and life without fear for the future is a wealth in itself.
Our movement is for the private or social production. People themselves must decide where they want to work and social production has the right to exist as the private production does, and it must be the main goal of a society or a state to eliminate unemployment, create jobs, and reduce or control voluntary slavery and exploitation of man by man. This is a true democracy without imposing only one economic system on all people.
In 2018 in the US, there were 254,000,000 adults, 43,000,000 retired, and only 5,600,000 employer firms with less than 500 people. It is only about 2,8% of the working adults. This shows that over 95% of people work for a wage.
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