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Capitalism, Socialism and ChatGPT

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 Capitalism, Socialism and ChatGPT
Robert W. McGee
Fayetteville State University

WORKING PAPER

February 24, 2023

ABSTRACT
The present paper is a continuation of three other studies on the capabilities of ChatGPT and the
possible political bias it might have. The first study asked ChatGPT to write Irish Limericks about
liberal and conservative politicians and public figures. That study found that the bot was heavily
biased in favor of liberal politicians. The second study found that it was capable of writing decent
short stories. The third study asked it to compile a list of the ten best and ten worst U.S. presidents.
The bot produced a list that is similar to what a group of historians might construct, although there
were a few obvious omissions. The present study asked the bot to write 1000-word essays on
capitalism and socialism. The study concluded that the bot is capable of writing decent college-
level term papers, which is good news for students who want to minimize their time and effort
writing papers, but bad news for professors who want to evaluate students based on their own
ability rather than their ability to provide key words to a bot. This paper also includes a
bibliography of other research on ChatGPT for those who may be interested in reading or writing
on this topic but who do not want to spend much time finding references.

Keywords: ChatGPT, bot, artificial intelligence, AI, capitalism, socialism, bibliography

JEL Codes: A20, A22, A23, A29, C89, P00, P10, P20, P50, Y92

INTRODUCTION

My journey into the world of ChatGPT started when I read that this artificial intelligence

bot could write Irish Limericks. I decided to give it a try. I went to the URL and typed in the

command to write an Irish Limerick about Joe Biden.1 I repeated that command four more times

for Biden, then had it create 5 Limericks for Donald Trump. During the course of reading the 10

1
McGee, 2023a. After completing this study, I did another study with ChatGPT to see what kind of short stories it
could write. I had it write 3 short stories, all of which were not bad. See McGee, 2023b for details.

1
Limericks,2 I spotted what appeared to be a trend. All 5 Limericks of Joe Biden were positive in

nature, while the 5 Trump Limericks were all negative. Being a numbers guy, I figured the

probability of this outcome happening by chance was quite low. Given the assumption that in a

fair game, the probability that a Limerick would be positive, negative or neutral would each be

1/3, the probability that all 5 Limericks would be positive would be (1/3)5, or 0.0041, or 0.41%.

The same probability would hold for the negative and neutral outcomes.

As a result of these outcomes for Biden and Trump, I decided to expand the sample size to

a total of 10 Limericks for Biden, 10 for Trump, and 5 each for a number of other liberal and

conservative politicians and public figures, for a total of 80 Limericks. The finding was that the

liberal democrats in the sample tended to have a significantly higher probability of having positive

Limericks while the conservatives3 tended to have a significant probability of having negative

Limericks. In some cases, the Limericks were so poorly worded that it was difficult or impossible

to tell whether they were positive, negative or neutral.

A few days later I decided to expand the study to include former presidents. I gave the bot

the command to list the 10 best and 10 worst presidents. The outcome of this experiment was more

neutral, in the sense that the lists were similar to what a group of historians might construct.4

As a second expansion of the first project, I decided to ask ChatGPT to write a 1000-word

essay on capitalism and a 1000-word essay on socialism to see whether the bot was biased in favor

of one economic system over the other. The findings are presented below.

2
Which were of poor quality technically.
3
Not all conservatives were republicans. Hannity, for example, has repeated numerous times that he is a
conservative, not a republican.
4
It might be pointed out that most academic historians are of a liberal persuasion, so the outcome was not a surprise.
According to one study, liberal historians outnumber conservative historians by a ratio of 33.5 to 1. See Flaherty,
2016; also see Jaschik, 2017.

2
FINDINGS

Although the bot was given a command to write a 1000-word essay on each economic

system, it actually wrote 590 words on capitalism and 600 words on socialism. A similar result

was obtained in my study of short story writing.5 In that study, the bot was commanded to write

three 1000-word short stories. In each case, the word count was significantly less than 1000.

The results of the present study are given below. They are a direct copy and paste of what

ChatGPT wrote. Each essay presented both sides, although superficially, which could be expected

in a short essay.

Capitalism 1 [590 words]

Capitalism is an economic system that is widely adopted in many countries around the world. It
is based on the idea of private ownership of the means of production and the creation of goods
and services for profit. Capitalism is often associated with free markets and competition, and it is
the primary economic system in the United States and many other Western countries.

At the core of capitalism is the concept of private property. In a capitalist system, individuals and
businesses own the land, buildings, machines, and other resources used to produce goods and
services. This ownership gives them the right to use these resources in any way they see fit,
including the right to sell them to others for a profit.

One of the key benefits of capitalism is its ability to create wealth. When individuals and
businesses are free to pursue their own self-interest, they can create innovative products and
services that people want to buy. This can lead to economic growth, as more people are able to
buy and sell goods and services.

Another benefit of capitalism is its ability to create jobs. When businesses are successful, they
often hire more employees to keep up with demand. This can help to reduce unemployment and
improve living standards for workers.

However, capitalism is not without its critics. One of the main criticisms of capitalism is that it
can lead to income inequality. When some individuals or businesses are able to accumulate large
amounts of wealth, they may become more powerful and influential than others. This can lead to
a concentration of power that is not always in the best interests of society as a whole.

In addition, some argue that capitalism can lead to environmental degradation. When businesses
are focused solely on making a profit, they may not take into account the environmental impact
5
McGee, 2023b.

3
of their activities. This can lead to pollution, deforestation, and other environmental problems
that can harm both people and wildlife.

Despite these criticisms, capitalism remains a dominant economic system in many parts of the
world. In the United States, for example, capitalism has been the foundation of the country's
economic success for over two centuries. However, many argue that the current version of
capitalism is in need of reform in order to address some of the problems that have arisen in
recent years.

One proposal for reforming capitalism is to increase the role of government in the economy.
Some argue that the government should have a greater say in how businesses operate, and should
be able to impose regulations and taxes in order to promote social and environmental objectives.
Others argue that the government should take a more active role in redistributing wealth, through
programs such as progressive taxation and social welfare programs.

Another proposal for reforming capitalism is to increase the role of workers in the economy.
Some argue that workers should have greater control over the means of production, through
measures such as employee-owned businesses and worker cooperatives. Others argue that
workers should have more bargaining power in the labor market, through measures such as
minimum wage laws and collective bargaining.

Overall, capitalism is a complex economic system that has both benefits and drawbacks. While it
has created wealth and prosperity for many people around the world, it has also led to income
inequality and environmental degradation. As we continue to grapple with these issues, it will be
important to consider a range of different proposals for reforming capitalism, in order to create
an economic system that is both prosperous and just.

Socialism 1 [600 words]

Socialism is an economic and political system that seeks to redistribute wealth and power to
create a more equal and just society. It is based on the idea that resources and the means of
production should be owned and controlled collectively, rather than by private individuals or
corporations. Socialism has been a source of controversy and debate throughout history, with
proponents arguing that it can lead to greater equality and fairness, while opponents argue that it
stifles innovation and individual freedom.

At the core of socialism is the belief that the economy should be organized in a way that benefits
everyone, not just a small elite. This means that resources and the means of production should be
owned and controlled collectively, rather than by a few wealthy individuals or corporations. In a
socialist system, the government or a collective of workers would control and manage the
production and distribution of goods and services, with the goal of meeting the needs of all
members of society.

One of the main benefits of socialism is its emphasis on equality. Socialists argue that capitalism
perpetuates inequalities in wealth, power, and opportunity, and that a socialist system would be

4
more equitable. By eliminating the profit motive and ensuring that everyone has access to the
resources they need, socialists believe that it is possible to create a more equal and just society.

In addition, socialists argue that a socialist system would be better able to address social
problems such as poverty, homelessness, and healthcare. By providing basic goods and services
to all members of society, regardless of their ability to pay, socialists believe that it is possible to
eliminate many of the social ills that plague capitalist societies.

However, socialism is not without its critics. One of the main criticisms of socialism is that it can
lead to inefficiency and a lack of innovation. Critics argue that without the profit motive,
businesses and individuals may not have the same incentives to be creative and productive. They
also argue that central planning can lead to inefficiencies and waste.

In addition, some argue that socialism can lead to a lack of individual freedom. Critics argue that
without the ability to own and control private property, individuals may not have the same
degree of freedom and autonomy as they would in a capitalist system. They also argue that
socialism can lead to a lack of diversity and creativity, as everyone is forced to conform to the
same system and way of thinking.

Despite these criticisms, socialism remains an important political and economic system that has
inspired many social movements around the world. In countries such as Cuba, Venezuela, and
China, socialism has been used to create more equal and just societies, although the success of
these efforts is a matter of debate.

One proposal for reforming capitalism is to adopt a more socialist approach to the economy. This
could involve greater government control over the means of production, or the creation of
worker-owned cooperatives and other forms of collective ownership. It could also involve
greater investment in public goods such as healthcare, education, and housing.

Overall, socialism is a complex and controversial economic and political system that has been
the subject of much debate and discussion throughout history. While it has the potential to create
greater equality and social justice, it is also associated with inefficiency and a lack of individual
freedom. As we continue to grapple with the challenges of inequality and social injustice, it will
be important to consider a range of different proposals for reforming the economic system,
including those that draw on socialist principles.

TENTATIVE CONCLUSIONS

One result of this study is that ChatGPT was found to be capable of writing acceptable

college term papers. The only thing missing was a list of citations. I decided to test to see whether

the bot had the ability to create such a list. I gave the bot a command to write a 1000-word essay

5
on capitalism that included references. Then I gave a similar command for a socialism paper. The

results are presented below.

Capitalism 2 [645 words]

Capitalism is an economic system that is based on the principles of private ownership of the
means of production and the creation of goods and services for profit in a competitive market. It
is a system that has been in existence for centuries and has played a significant role in shaping
the global economy. Capitalism has been praised for promoting innovation, creating jobs, and
raising the standard of living for people in many parts of the world. However, it has also been
criticized for promoting inequality, exploitation, and environmental degradation. In this essay,
we will explore the advantages and disadvantages of capitalism and its impact on society.

One of the main advantages of capitalism is that it promotes innovation and entrepreneurship. In
a capitalist system, individuals are free to pursue their own economic interests, and this leads to
the creation of new businesses and the development of new products and services. Competition
among businesses drives innovation and efficiency, which can lead to lower prices for consumers
and higher profits for businesses. This is evident in many industries, such as technology, where
companies like Apple, Microsoft, and Google have revolutionized the way we live, work, and
communicate.

Another advantage of capitalism is that it creates jobs and promotes economic growth. When
businesses are profitable, they can invest in new equipment, technology, and workers, which
leads to more job opportunities and higher wages. This in turn leads to increased consumer
spending, which further drives economic growth. In addition, capitalism encourages investment
and risk-taking, which can lead to the development of new industries and the expansion of
existing ones. This has been particularly true in emerging economies such as China and India,
where capitalism has helped lift millions of people out of poverty.

However, capitalism has also been criticized for promoting inequality and exploitation. In a
capitalist system, those who own the means of production have more power and influence than
those who do not. This can lead to a concentration of wealth and power in the hands of a few,
which can be detrimental to society as a whole. In addition, some businesses may engage in
unethical practices, such as exploiting workers or damaging the environment, in order to increase
profits.

Another criticism of capitalism is that it can be unstable and prone to economic crises. This is
because capitalism is based on the principle of supply and demand, and when demand falls or
supply exceeds demand, businesses may go bankrupt and workers may lose their jobs. This can
lead to a vicious cycle of unemployment, decreased consumer spending, and further economic
decline. This was evident in the 2008 financial crisis, which was caused in part by the reckless
behavior of banks and other financial institutions.

Despite these criticisms, capitalism remains the dominant economic system in the world today.
This is due in part to its ability to adapt and evolve in response to changing economic and social

6
conditions. For example, many businesses have adopted more socially responsible practices in
recent years, such as reducing their carbon footprint or improving working conditions for their
employees. In addition, governments have implemented policies to mitigate the negative effects
of capitalism, such as minimum wage laws, antitrust regulations, and environmental regulations.

In conclusion, capitalism is an economic system that has both advantages and disadvantages.
While it has been praised for promoting innovation, creating jobs, and raising the standard of
living, it has also been criticized for promoting inequality, exploitation, and environmental
degradation. As such, it is important for governments, businesses, and individuals to be mindful
of the potential negative effects of capitalism and to work towards creating a more just and
sustainable economic system.

References:

Acemoglu, D. (2009). Introduction to modern economic growth. Princeton University Press.

Baumol, W. J., & Blinder, A. S. (2015). Economics: Principles and policy. Cengage Learning.

Friedman, M. (1962). Capitalism and freedom. University of Chicago Press

Socialism 2 [609 words]

Socialism is an economic system that advocates for the collective ownership of the means of
production and distribution of goods and services. It is based on the principle of economic
equality, with the goal of creating a more just and egalitarian society. While socialism has been
praised for its emphasis on social welfare and public ownership, it has also been criticized for its
potential to stifle innovation, reduce incentives, and lead to economic inefficiency. In this essay,
we will explore the advantages and disadvantages of socialism and its impact on society.

One of the main advantages of socialism is that it promotes social welfare and equality. In a
socialist system, resources are distributed according to need rather than profit, which can lead to
more equitable outcomes. For example, a socialist healthcare system would ensure that all
citizens have access to basic healthcare services regardless of their ability to pay. Similarly, a
socialist education system would provide free education to all students regardless of their
socioeconomic status. This emphasis on social welfare has been praised for promoting social
justice and reducing poverty.

Another advantage of socialism is that it can promote collective decision-making and public
ownership. In a socialist system, the means of production are owned and controlled by the state
or by the workers themselves. This can lead to more democratic decision-making, as workers
have a say in how their workplace is run and resources are allocated. Additionally, public
ownership can ensure that important industries such as healthcare, education, and transportation
are run in the public interest rather than for profit.

7
However, socialism has also been criticized for its potential to stifle innovation and reduce
incentives. In a socialist system, there may be less emphasis on individual initiative and
entrepreneurship, as resources are distributed according to need rather than profit. This can lead
to less innovation and less economic growth, as there may be less incentive for individuals to
take risks and create new businesses or products. Additionally, government control of industries
can lead to inefficiencies and bureaucratic delays, which can slow down economic growth.

Another criticism of socialism is that it can lead to economic inequality and inefficiency. In a
socialist system, there may be less competition and less market discipline, which can lead to
economic inefficiencies and reduced productivity. Additionally, government control of industries
can lead to corruption and rent-seeking, as individuals seek to gain power and influence within
the government. This can lead to inefficiencies and waste, as resources are allocated based on
political rather than economic considerations.

Despite these criticisms, socialism remains a popular economic system in many parts of the
world. This is due in part to its emphasis on social welfare and economic equality, which can be
attractive to individuals who believe that capitalism is unjust or unfair. Additionally, socialism
has been successful in some countries such as Scandinavia, where it has led to high levels of
social welfare and economic prosperity.

In conclusion, socialism is an economic system that has both advantages and disadvantages.
While it has been praised for promoting social welfare and collective decision-making, it has
also been criticized for its potential to stifle innovation, reduce incentives, and lead to economic
inefficiency. As such, it is important for individuals and policymakers to carefully consider the
potential benefits and drawbacks of socialism when designing economic policies and systems.

References:

Heilbroner, R. L. (1985). The nature and logic of capitalism. WW Norton & Company.

Kotz, D. M. (2015). The rise and fall of neoliberal capitalism. Harvard University Press.

O'Connor, J. (1973). The fiscal crisis of the state. St. Martin's Press.

Sweezy, P. M. (1970). The theory of capitalist development. Monthly Review Press.

CONCLUDING COMMENTS

The bot did a good job. It wrote acceptable essays that contained references. The second

paper was different from the first paper in both the capitalism and socialism cases. The finding in

this paper is good news for students who want to minimize their time and effort writing papers,

8
but bad news for professors who want to evaluate students based on their own ability rather than

their ability to provide key words to a bot.

Robert W. McGee is a professor at the Broadwell College of Business and Economics,

Fayetteville State University, USA. He has earned 23 academic degrees, including 13 doctorates
from universities in the USA and four European Countries and a certificate in tai chi from Harvard
Medical School. He has published more than 60 books, including several novels, and more than
1000 articles, book chapters, conference papers and working papers. Various studies have ranked
him #1 in the world for both accounting ethics and business ethics scholarship. He is an attorney
and CPA (retired) and has worked or lectured in more than 30 countries. He drafted the accounting
law for Armenia and Bosnia and reviewed the accounting law for Mozambique. He was in charge
of assisting the Finance Ministries of Armenia and Bosnia convert their countries to International
Financial Reporting Standards. He is also a world champion in taekwondo, karate, kung fu and tai
chi (both Yang and Sun styles) and has won more than 900 gold medals.

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Jaschik, Scott. (2017). Professors and Politics: What the Research Says. Inside Higher Ed,
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McGee, Robert W. (2023a). Is Chat GPT Biased against Conservatives? An Empirical Study.
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9
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(February 7, 2023). Available at SSRN: https://ssrn.com/abstract=4350557 or
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Araujo, Marcelo de and de Almeida, Guilherme F. C. F. and Nunes, José Luiz, Epistemology
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Twin in Healthcare (December 21, 2022). Aydın, Ö., Karaarslan, E. (2022). OpenAI ChatGPT
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Multiple Levels; and it has Broken the Idea of Thinking, Version 3 (February 6, 2023). Available
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Understanding Patents and Innovation (March 2022). Available at SSRN:
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(January 11, 2023). NUS Law Working Paper No. 2023/002, Available at SSRN:
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De Angelis, Luigi and Baglivo, Francesco and Arzilli, Guglielmo and Privitera, Gaetano
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conversational AI: Converging evidence on ChatGPT’s pro-environmental, left-libertarian
orientation (January 1, 2023). Available at SSRN: https://ssrn.com/abstract=4316084 or
http://dx.doi.org/10.2139/ssrn.4316084

Iu, Kwan Yuen and Wong, Vanessa Man-Yi, ChatGPT by OpenAI: The End of Litigation
Lawyers? (January 26, 2023). Available at SSRN: https://ssrn.com/abstract=4339839 or
http://dx.doi.org/10.2139/ssrn.4339839

Jabotinsky, Hadar Yoana and Jabotinsky, Hadar Yoana and Sarel, Roee, Co-authoring with an
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Jenkins, Ryan and Lin, Patrick, AI-Assisted Authorship: How to Assign Credit in Synthetic
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Kim, Junghwan and Lee, Jinhyung, How does ChatGPT introduce transportation problems and
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https://ssrn.com/abstract=4349774 or http://dx.doi.org/10.2139/ssrn.4349774

Kutela, Boniphace and Msechu, Kelvin and Das, Subasish and Kidando, Emmanuel, Chatgpt's
Scientific Writings: A Case Study on Traffic Safety (January 19, 2023). Available at SSRN:
https://ssrn.com/abstract=4329120 or http://dx.doi.org/10.2139/ssrn.4329120

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Leippold, Markus, Sentiment Spin: Attacking Financial Sentiment with GPT-3 (January 25,
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Leippold, Markus, Thus Spoke GPT-3: Interviewing a Large-Language Model on Climate

Finance (September 12, 2022). Available at SSRN: https://ssrn.com/abstract=4237242 or
http://dx.doi.org/10.2139/ssrn.4237242

Lund, Brady and Ting, Wang, Chatting about ChatGPT: How May AI and GPT Impact
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Lund, Brady and Agbaji, Daniel, Information Literacy, Data Literacy, Privacy Literacy, and
ChatGPT: Technology Literacies Align with Perspectives on Emerging Technology Adoption
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or http://dx.doi.org/10.2139/ssrn.4324580

Macey-Dare, Rupert and ChatGPT, Open AI's Assistant, ChatGPT & Generative AI Systems as
Quasi-Expert Legal Advice Lawyers - Case Study Considering Potential Appeal Against
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https://ssrn.com/abstract=4342686 or http://dx.doi.org/10.2139/ssrn.4342686

Mariani, Marcello, Generative Artificial Intelligence and Innovation: Conceptual Foundations

(October 16, 2022). Available at SSRN: https://ssrn.com/abstract=4249382

Mellon, Jonathan and Bailey, Jack and Scott, Ralph and Breckwoldt, James and Miori, Marta,
Does GPT-3 know what the Most Important Issue is? Using Large Language Models to Code
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https://ssrn.com/abstract=4310154 or http://dx.doi.org/10.2139/ssrn.4310154

Mhlanga, David, Open AI in Education, the Responsible and Ethical Use of ChatGPT Towards
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or http://dx.doi.org/10.2139/ssrn.4354422

Nay, John, Large Language Models as Fiduciaries: A Case Study Toward Robustly
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Nay, John, Large Language Models as Corporate Lobbyists (January 2, 2023). Available at
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Nisar, Saima and Aslam, Muhammad Shahzad, Is ChatGPT a Good Tool for T&CM Students in
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O'Leary, Daniel E., Massive Data Language Models and Conversational AI: Emerging Issues
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Pettinato Oltz, Tammy, ChatGPT, Professor of Law (February 4, 2023). Available at SSRN:
https://ssrn.com/abstract=4347630 or http://dx.doi.org/10.2139/ssrn.4347630

Polonsky, Michael and Rotman, Jeff, Should Artificial Intelligent (AI) Agents be Your Co-
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Sætra, Henrik Skaug, Generative AI: Here to stay, but for good? (December 31, 2022). Available
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Sarel, Roee, Restraining ChatGPT (February 11, 2023). Available at SSRN:

https://ssrn.com/abstract=4354486 or http://dx.doi.org/10.2139/ssrn.4354486

Schwitzgebel, Eric, Results: The Computerized Philosopher: Can You Distinguish Daniel
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Sebastian, Glorin, Do ChatGPT and Other AI Chatbots Pose a Cybersecurity Risk? - An

Exploratory Study (February 19, 2023). Available at SSRN: https://ssrn.com/abstract=4363843
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Shah, Chirag, The Rise of AI Chat Agents and the Discourse with Dilettantes (December 8,
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Shope, Mark, Best Practices for Disclosure and Citation When Using Artificial Intelligence
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Street, Daniel and Wilck, Joseph, 'Let’s Have a Chat': Principles for the Effective Application of
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Tu, Shine (Sean) and Cyphert, Amy and Perl, Sam, Limits of Using Artificial Intelligence and
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Uludag, Kadir, The Use of AI-Supported Chatbot in Psychology (January 20, 2023). Available at
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 Ventayen, Randy Joy Magno, ChatGPT by OpenAI: Students' Viewpoint on Cheating using
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Ventayen, Randy Joy Magno, OpenAI ChatGPT Generated Results: Similarity Index of
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Willems, Jurgen, ChatGPT at Universities – The Least of Our Concerns (January 20, 2023).
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Yue, Thomas and Au, David and Au, Chi Chung and Iu, Kwan Yuen, Democratizing Financial
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Zaremba, Adam and Demir, Ender, ChatGPT: Unlocking the Future of NLP in Finance (January
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Zarifhonarvar, Ali, Economics of ChatGPT: A Labor Market View on the Occupational Impact
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Zautner, Daniel, The Turing Test of Language: AI, Language Games, and the Threat of the Irish
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Zentner, Aeron, Applied Innovation: Artificial Intelligence in Higher Education (December 28,
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Zhai, Xiaoming, ChatGPT for Next Generation Science Learning (January 20, 2023). Available
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Zhai, Xiaoming, ChatGPT User Experience: Implications for Education (December 27, 2022).
Available at SSRN: https://ssrn.com/abstract=4312418 or http://dx.doi.org/10.2139/ssrn.4312418

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