There is a very important confusion. What we have to distinguish between are capitalist industrialists who operate on a free market and the kind of capitalists who operate with government help.Continue reading “Don’t conflate capitalism and corporatism”
That some should be rich shows that others may become rich, and hence is just encouragement to industry and enterprise.
Free enterprise capitalism exists only when people in the private sector are free to pursue their own interests without direction from government. When politicians start passing laws to tell them what to do, or bureaucrats start issuing edicts to tell them what to do, it is no longer capitalism; it’s fascism.
All people, however fanatical they may be in their zeal to disparage and to fight capitalism, implicitly pay homage to it by passionately clamoring for the products it turns out.
The essential notion of a capitalist society … is voluntary cooperation, voluntary exchange. The essential notion of a socialist society is force.
The prosperity of commerce is now perceived and acknowledged by all enlightened statesmen to be the most useful as well as the most productive source of national wealth, and has accordingly become a primary object of its political cares.
[T]he power which a multiple millionaire, who may be my neighbor and perhaps my employer, has over me is very much less than that which the smallest fonctionaire possesses who wields the coercive power of the state and on whose discretion it depends whether and how I am to be allowed to live or to work? And who will deny that a world in which the wealthy are powerful is still a better world than one in which only the already powerful can acquire wealth?
We are stupid if we believe that a politician can produce a better life than that which is obtained through peaceable, voluntary exchange with our fellow man anywhere on earth.
What’s worked beautifully throughout American history is the freemarket economy. What has brought us low is government bureaucracy and corruption.
Capitalism should not be condemned, since we haven’t had capitalism. A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank. It’s not capitalism when the system is plagued with incomprehensible rules regarding mergers, acquisitions, and stock sales, along with wage controls, price controls, protectionism, corporate subsidies, international management of trade, complex and punishing corporate taxes, privileged government contracts to the military-industrial complex, and a foreign policy controlled by corporate interests and overseas investments. Add to this centralized federal mismanagement of farming, education, medicine, insurance, banking, and welfare. This is not capitalism!