I had a philosophical discussion with a friend the other day about economics and it reminded me that I’m still a capitalist.
Not that there was ever much of a doubt, but it’s just that political diversions lately have caused me to drift to a more pragmatic position. I’m not saying that’s good, because it’s not.
We would all be better off with a more strictly capitalist approach to about everything in this country.
My personal solution to this dilemma is to re-read Adams Smith’s “The Wealth of Nations”. It’s as old as our country, the English is a bit twisty sometimes, but it’s very readable. It is truly a recipe book for a robust and successful economy based on free markets and capitalism.
You know, free market capitalism – the only system in recorded history that has consistently lifted people out of grinding poverty. It is the only economic system that works consistently to improve the lot of us.
If you want to know where in the world people are the worst off, look to those unfortunate countries where they pursue the opposite – bloated governments trying to run everything with a problem for every solution. Venezuela went from prosperity under capitalism to poverty under socialism, and did so in about a generation’s time.
When people are free with individuals pursing their own interests, good things happen. But when business people have to pander to government bureaucrats who have never created anything, we descend into a very questionable existence.
“The most virtuous wolf in the forest is the one that takes care of their own.“
Right now, we have rapidly multiplying government bureaus that do nothing beyond providing employment for the politically connected few, and imposing rules designed for yesterday’s problems. The great achievements of civilizations didn’t come from government bureaus.
Steve Jobs didn’t create Apple Computer on command from the government.
Einstein didn’t create his theories by order or decree of some government bureau.
Henry Ford didn’t revolutionize the automobile business because he was commanded to do so by the government.
He – and they – did those things because of self-interest. They ALL succeeded because of freedom and capitalism. The fact of the matter is that these people changed the world because they were unbridled by government.
The collateral effect is that it benefits everyone – their employees, their customers, their vendors, and their vendors employees – because capitalism is a self-organizing, chaotic system … with the emphasis is on self-organizing.
Look at our space agency. They have burned through trillions of dollars, and the bureaucrats can’t even get a few astronauts to the International Space Station. They have failed.
But the capitalists can, and they do it successfully and for a small fraction of NASA’s budget. Thank you, Elon Musk. As I write this, NASA and its sibling Boeing scrubbed another mission to put men into space. Since they started delaying this mission, Elon Musk’s SpaceX has put more than a dozen people into space. Safely. Efficiently and for a reasonable cost.
“Res ipsa loquitur is Latin” for “The thing speaks for itself,” and I believe the ole saying fits today’s status of space exploration and that it’s a stark reminder of the incredible productive activities unleashed by free markets and capitalism.
Capitalism is organic. It grows and changes on its own. It’s an evolving ecosystem, full of cooperative and competitive relationships.
Every time I hear some politician refer to the economy as a machine, and some others insisting that by squandering your taxes, they can “rev up the economy,” I can’t help but ask, “Where has this ever worked? In this country or any other?”
The economics as a machine, under the thumb of bureaucrats, is foolishness.
Government economic development is a lot like an infant filling a diaper. The government feels relieved – warm and comfy even – immediately, but then they abruptly have a blowout, leaving the taxpayers to clean up the mess.
So, the next time someone tries to tell you about all of capitalism’s problems and income disparity, remind them that it’s worse in places where they have tried to “fix it.” Much worse.
Now, they will then try to point out a couple of Scandinavian countries where they have taxed everyone to the same level of mediocrity. Their rich are still rich. It’s just that everyone else is now equally tax poor. If we have not learned that we generally get the opposite of what is legislated, we have not been paying attention.
Lead, follow, or get out of the way. Government needs to get out of the way. It has proven to be ham-fisted at best, and destructive at its usual worst. The most virtuous wolf in the forest is the one that takes care of their own. Capitalism remains the most virtuous economic system, and when coupled with free markets, it allows each and every one of us to prosper.
It’s time we made a clear U-turn back to what made these United States an economic powerhouse.
