Capitalism Ties Consumption to Production

One of the great benefits of a capitalistic society is the material abundance enjoyed by the people.

I believe the reason people under capitalism enjoy such material abundance is because consumption is linked to production.

Under capitalism, if you are a child about to become an adult, and you want to have some spending money of your own instead of begging the parents, what do you do? You get a job. More precisely, you find an enterprise of some sort that produces stuff for other people and you offer to help them out for money.

The enterprise gets money because it provides for the wants or needs of people. It gets money because it produces.

To the extent possible, the enterprise employees people who contribute to its purpose. People who are rare to find or contribute more get paid more.

Now think of the socialist or centrally directed society.

People generally are entitled to a salary or stipend when they reach a certain status: student, or adult, administrator. The people in command determine what you get, not a market.

The idea of a uniform basic income, no matter what you do of if you do anything, is clear collectivism/socialism. The political process yields consumption. Your production is irrelevent.

Now under Socialism people do have to produce, or else there is nothing to consume. That is the reason that under Socialism there are always shortages of everything. Production has to be coerced at force. Ultimately leading to the horrific death toll of socialistic regimes.