Category: Economic Freedom

venezuela-food-shortagesThe Venezuelan economy is buckling under the weight of its severe socialist policies, and even as its president admits to a nationwide economic emergency, the government continues to affirm the drivers behind the collapse, blaming low oil prices and global capitalism instead.

This was supposed to be the dawn of “21st-century socialism,” as the late President Hugo Chavez proclaimed over 10 years ago, complete with the right tweaks and upgrades to its materialistic, mechanistic approach to the human person. “We have assumed the commitment to direct the Bolivarian Revolution towards socialism,” he said, “and to contribute to the socialist path, with a new socialism…which is based in solidarity, in fraternity, in love, in justice, in liberty, and in equality.”

Alas, with a shrinking economy, booming inflation, violent outbreaks, and empty food shelves, “21st-century socialism” is feeling mighty nostalgic in all the wrong ways.

In the years before Chavez, the country was in better shape than much of the continent. Now, thanks to the temptations of centralized power, the arrogance of centralized planners, and a series of faux upgrades to age-old bad ideas, the nation is crumbling. The oil prices simply served as the messenger. (more…)

I want to be very clear from the outset that moral concerns surrounding transgender identity are not unimportant. But in the likely event that we don’t come to any national consensus on that question any time soon, it is important not to overlook other moral and social concerns that are far more pressing. In particular, there are legitimate concerns regarding safety and privacy, no matter which side one favors, but resorting to the force of law will leave some real victims vulnerable.

On the one hand, the Anti-Violence Project’s 2014 Report on Lesbian, Gay, Bisexual, Transgender, Queer, and HIV-Affected Hate Violence found that compared to violence among the general population, “Transgender women [i.e. biologically male] survivors were 1.6 times more likely to experience physical violence and 1.6 times more likely to experience sexual violence, when compared with other survivors.” I have seen headlines connecting this violence with restroom use in the past, but now that the issue has become politicized those stories are harder to locate. In any case, privacy and safety are real and major concerns for many. We should not be indifferent to this.

On the other hand, according to the CDC,

  • Nearly 1 in 5 (18.3%) women and 1 in 71 men (1.4%) reported experiencing rape at some time in their lives.
  • Approximately 1 in 20 women and men (5.6% and 5.3%, respectively) experienced sexual violence other than rape….

Again, privacy and safety are real and major concerns here. We should not be indifferent. (more…)

artofthedeal[Note: This is the first in an occasional series evaluating the remaining presidential candidates and their views on economics and liberty.]

In the history of American politics, there has never been a candidate quite like Donald Trump. He is an Ivy League-educated New York billionaire appealing to populists across the country. He is a crony capitalist who loves bureaucracy and yet has convinced voters that he is the anti-Establishment candidate. He is profoundly ignorant about economics and openly hostile to freedom, and yet on the verge of securing the nomination of what was once the America’s “conservative” party.

He is, as he claims, a sort of artist.

Yet for all his contradictions, understanding Trump is rather simple. The first step is to understand that he cares less about principles or policy than he does about process.

creative-service-house-flow3“The fruit of our labor is fellowship. It’s community. It’s relationship.”

Global trade has suddenly emerged as a hot conversation in the current election cycle, with candidates like Donald Trump and Bernie Sanders leading the charge toward severe protectionism, while the others quietly shrug and nod along accordingly.

Voters of all ideological stripes are responding with fervor, calling for more trade barriers and increased manipulation of prices and wages, hoping to insulate the American economy from our global neighbors and “keep what’s ours.”

Such stances quickly fall apart when one looks to basic economic theory. But well before and beyond its threats to material wellbeing, protectionism inhibits and prohibits something far more important: widespread creative service and the transcendent beauty of free and open exchange. (more…)

chobani-ceoAs politicians continue to decry the supposed “greed” of well-paid investors, business leaders, and entrepreneurs — promoting a variety of reforms that seek to mandate minimums or cap executive pay — one company is demonstrating the value of economic freedom and market diversity.

Chobani, a privately owned greek yogurt manufacturer, recently announced it will be giving a 10% ownership stake to its roughly 2,000 full-time workers, a move that could result in hundreds of thousands, if not millions, of dollars for some employees.

According to the New York Times:

Hamdi Ulukaya, the Turkish immigrant who founded Chobani in 2005, told workers at the company’s plant here in upstate New York that he would be giving them shares worth up to 10 percent of the company when it goes public or is sold.

The goal, he said, is to pass along the wealth they have helped build in the decade since the company started. Chobani is now widely considered to be worth several billion dollars.


There is something about an election year that causes otherwise rational people to lose all economic sense. Take, for example, minimum-wage-15the issue of free trade. The opposition to free trade on both sides of the politial spectrum is baffling. Yet progressives seem particularly confused, seeming to hold two opposing views on trade at the same time.

“Have you ever wondered if you are a progressive?” asks economist Scot Sumner. “I’ve come up with a two-part test. If you believe in both of the following propositions, then you qualify as a American progressive, circa 2016.” His propositions are:

millenials-phonesA recent national survey by the Harvard Institute of Politics finds that a majority of Millennials (18- to 29-year olds) do not support capitalism as a political theory. One-third of them, however, do support socialism.

As a rule, I try not to put too much stock in such surveys because opinion polls make us dumb. But it’s become obvious that a significant portion of younger American are truly so under-educated that they truly believe socialism is preferable to capitalism.

Perhaps the problem is merely one of language. The reality is that the most ardent “capitalists” don’t like “capitalism” either.

Capitalism is merely an economic system in which the modes and means of production are mostly or entirely privately owned. That’s a rather broad categorization that includes such systems as corporatism, crony capitalism, social democracy, state capitalism, and welfare capitalism. Even those of us who can be described as “capitalists” would reject most of the other forms of capitalism we don’t like. (Which is why we tend to dislike the  unhelpful word “capitalism.”)

What many of us (I’m tempted to say true capitalists) prefer is not an amorphous capitalism, but an economic system that is outgrowth of the natural order of liberty: a free economy. There’s no agreed upon term for the system of a free economy (which is why capitalism is often used as a substitute) but it includes free people engaging in free enterprise in free markets. A free economy is not a laissez-faire, each-to-his-own system of consumerism. It’s a system in which people are allowed to use their resources and abilities most effectively to serve others.

My naïve hope is that if more Millennials understood that capitalism is mostly used as a derogatory term free enterprise and economic liberty, they’d realize that they really do support it after all. But in case they aren’t convinced here are five reasons why you, young Millennial reader, should support capitalism: