A capitalist society also has to limit the percentage of people scraping the bottom, as too many leads to social unrest.
One can do as China: Let the millions live just above the limit of starvation, but not too many or too hungry that they overpower your law enforcement. If such a government strike that balance they have the added benefit of lowest payed largest sustainable bluecollar workforce. Social safty and other benefits is just another way to pay your workers.
Ups! non capitalist countries do that too.
Actually, that's what non-capitalist countries do as a matter of course... keep people just above starvation.
In capitalism, you work, or you starve. This provides incentive to work, but most people won't need this incentive, they'll have other desires above and beyond food. It also provides for keeping too many from "scraping the bottom"... at least for very long.
Yes Myrkul, but there still is the same limit. I think it's in Thailand whole families collect waste from restaurants and deep fry the lot. It's sold as BAK-BAK for a few cents to just as poor hired hands that sleep under sheets of cardboard. In Mexico city I have seen mum and dad with small children pushing cards around at 2 AM collecting plastic bags for the cents they get from the recycler. They all make a living and their only hope in life (I have talked with them) is that their children get some minimum of education so they can have a maginally better life than they had. So you are right, Mexico City uses less on street sweepers and they all persue their dream, but i don't think either of them can tell the difference between a democracy and a dictatorship. As you say, not all are able to provide for themselve for the value of their work, so there is a level of poverty a maximum percentage the population can be below before they either have to get some benefits, or the "not starved to dead" need higher wages for the sake of stability.
Im not talking about us in the western world. We are the 20%. Benefits are given to people considered wealthy in most of the world. With us it's a balance between benefits vs. the willingness to work for minimum wages, but as this is an ideological thread about capitalism and benefits, extreme case examples are relevant.
Hmm, I don't recall mentioning either democracy or dictatorships. I was talking about capitalism and non-capitalist systems, like socialism or corporatism.
If someone cannot provide for themselves, who, besides them of course, does it benefit to support them? Who does it benefit to artificially lift the value of their labor to the same as that of someone who can support themselves?
It benefits society to give benefits. As the cost of crime and social unrest at some point exceed the cost of benefits at a certain level. You can also argue that lifting poor neighbourhoods with free education sanitation, you also increase the value of their work long term, which generates a higher tax revenue and consumption.
A private business can either fire an employee when they find a better qualified in the wild, or educate or provide cheap housing for the emploees that need it, so they can add more value to the company. This makes perfect sense from a cost benefit view point.
If you make the poorest less poor with incentives you grow human assets available for your economy in your country it is good business if you strike the right balance.
Calling it Dictatorships and democracies was an extrapolating brain fart, but in a democracy the poorest have a vote, so there will always exist a minimum of government benefits. Every election in any country is also about the level of benefits the number of the poorest voters demand. In a pure Stalinistic dictatorship benefits can be non exsisting as there is no political incentive to waste money on the poor to get votes.