why capitalism works

Cultural depictions of capitalism in our nowadays society are almost all negative.

There’s the Monopoly guy with the top hat and cigar. There’s Gordon Gekko saying, “Greed is good.” And, most recently, there’s the hedonism of the “Wolf of Wall Street”. The message is clear: capitalism is selfish. Socialism, or something like it, is selfless.

In fact, the opposite is true. George Gilder offers this startling insight: capitalism, at it’s core, is first an expression of altruism; that is, of giving.

An entrepreneur can only succeed by satisfying a customer’s need. This is why capitalism, and only capitalism, can create the prosperity that all societies crave and why all other economic prescriptions are doomed to failure.

Regarding the Government’s and capitalism coexistence.
One of the factors that slows capitalism down the most is income tax. Such is something socialist systems relie on a lot. approaches to a fine for excessive working. It takes from the most productive to the least productive.
Secondly taxes will always be spent in wrong ways. It’s a subject for a longer discussion though, but in small words, it’s basically impossible to spend money to satisfy everyone equally since we are all different with a mind of our own with different needs and wants.
Some say they are happy that someone spends their money for them, but I think it’s a result of constant dumbing down. I mean, not being able to spend your own money is quite dumb, IMO.
If you let people spend their money themselves they can’t blame anyone. See the everlasting social movements in Euro countries, for example. Plus, they take lessons if they spent the money wrong.
No goverment ever takes a lesson since they can have debt and they’re not directly affected by their decisions due to their lack of commitment and as a result of their proximity to political power (aka the Hispanic wealth system).
In words of IshayuG, the vast majority of the time capitalism fails is when the left, who don’t understand it, try to interfere with it. They seek to “stabilize markets, protect the environment, and keep workers from becoming poor”.

To understand how government stabilizers pollute the capitalist system, let’s look at two monopolistic American banks. The reason why Citibank and Goldman Sachs cannot be stopped is that they are “too big to fail”. Now, this is not a property that capitalism assigned them; this is a property that politicians assigned them.

Banks grow to a certain size. When the government starts interfering, if the bank goes bankrupt, it would ruin a lot of people, so if the bank does go bankrupt, it will be bailed out by the government.
This puts banks in a no-lose situation in which the people are no longer your customers (understanding costumers as those who support your business), but the government instead. They become overtly political, and they don’t care about what people think of them or have to say.

Due to these banks having the government’s support, it creates an unfair competition and an uneven playing field for new banks to arise, preventing them from establishing themselves properly. This creates the dreaded monopoly.

The same line of logic will apply to any type of business.

The problem with minimal worker’s wage is that if someone isn’t worth as much as the minimal wage, that person becomes unemployed. This is a far bigger drain on that family than having a small wage is, and usually the government steps in to help, making it a drain on society at large; someone who would have created wealth now merely consumes it.
Let’s see a society in which everyone can get a job. It becomes a marketplace where your education, status quo, experience, and competitors ultimately decide how much you’re worth paying for.
This does not become a mediocre race to the bottom which brutalizes competition, because if almost everybody has a job, as they would under capitalism without a minimum wage, you will always have the ability to seek other jobs.
Properly functioning capitalism is delicate and easily destroyed by politicians who don’t understand it. This is because capitalism can only be destroyed by coercion (understood as taking from the poor to give to the rich). If you work, as a government, towards minimizing coercion, then capitalism will work.
The problem with regulating, though, is very simple: It consolidates the power of judging and the power of lawmaking into one entity.
Capitalism at its essence is a competition of giving. Entrepreneurs can only help themselves by helping others. Such is the beauty and genius of capitalism.
The only way a socialist system can socially and economically work at its finest would be for the individual’s commitment to their responsabilities to be lacking of mediocrity, selfless and hungry for more within its innate limitations.
Such cannot be taught by the hand of the government, but in the family’s core. A country isn’t its government or politicians, but its people and what they do with their also innate and God-given freedom.
The true meaning of life is to plant trees, under whose shade you do not expect to sit. ~Nelson Henderson

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2 comments

  1. dtgruber · September 2, 2014

    Even when taxes are collected, well spent or not, loads of money goes into public schools, universities, health care and security, so thanks to capitalism, those that didn´t have the ability to get a better fair share from life, will also enjoy the benefits out of capitalist mentality.

    Liked by 2 people

  2. high quality backlinking · October 1, 2014

    It’s wonderful that you are getting thoughts from this post as well
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    Like

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