Posts tagged with: capitalism

In an era where socialism is (inexplicably) once again in vogue, we should ask, “What would life be like in a world without capitalism?”

The Fund for American Studies has produced a superb It’s a Wonderful Life-style video that not only shows what life would be like if we banned free enterprise (i.e., a lot like Soviet Russia) but also makes the point that when you lose economic freedom you lose other freedoms too. As the angel says, “When you take away the carrot, all you’re left with is the stick.

My favorite part of the video:

Anti-capitalist activist: “I just wanted to get rid of the greed. I didn’t want to get rid of my microwave, my air-conditioner. . . ”

Angel: “Your Xbox.”

Activist: “My Xbox is gone?”

Angel: “Yeah, well, in this world that greedy Bill Gates work in a bowling ball factory in Akron. Lose-win, right?”

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:
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In an earlier post I compared the political economy of superheroes in the DC and Marvel universes. And today I have a piece up at The Stream examining the figure of Lex Luthor, the crony capitalist villain featured in Batman v. Superman: Dawn of Justice.

LexCorp (more…)

phillies-cubaThree years ago, Dalier Hinojosa was making the equivalent of $5 to $20 per month playing baseball in the state-run Cuban league. Having now defected from the country, escaping first to Haiti and now to America, Hinojosa will make $514,000 this season, playing for the Phillies.

In a profile at Philly.com, we learn more about the trials of his journey, which involved a high-risk, 12-hour escape at sea, joined by his wife and a smuggler in a small motorboat:

You never think about how you’re going to escape, [Hinojosa] said through an interpreter. You think about when. You cannot think about the risk of imprisonment or, worse, death. You think about the desperation that you never want to feel again.

The transition from communism to capitalism has already made Hinojosa rich, indeed. He originally signed with the Boston Red Sox for a $4 million bonus. (more…)

walter_williams2On this day in 1936, Walter E. Williams was born in the city of Philadelphia. The George Mason University economist is famous for his classical liberal views, often arguing that free market capitalism is not only the most moral economic system known to mankind, but it allows for the creation of the most wealth and prosperity. He has discussed many diverse themes, including: race in the United States, politics, liberty, education, and more. A prolific writer, Williams has written ten books, dozens of essays for scholarly journals, and hundreds of newspaper articles.

In honor of turning eighty, here are ten excellent quotes from Williams:

At the beginning of each semester, I tell students that my economic theory course will deal with positive, non-normative economic theory. I also tell them that if they hear me making a normative statement without first saying, “In my opinion,” they are to raise their hands and say, “Professor Williams, we didn’t take this class to be indoctrinated with your personal opinions passed off as economic theory; that’s academic dishonesty.” I also tell them that as soon as they hear me say, “In my opinion,” they can stop taking notes because my opinion is irrelevant to the subject of the class — economic theory. Another part of this particular lecture to my students is that by no means do I suggest that they purge their vocabulary of normative or subjective statements. Such statements are useful tools for tricking people into doing what you want them to do. You tell your father that you need a cell phone and he should buy you one. There’s no evidence whatsoever that you need a cell phone. After all, George Washington managed to lead our nation to defeat Great Britain, the mightiest nation on Earth at the time, without owning a cell phone.

Democracy and liberty are not the same. Democracy is little more than mob rule, while liberty refers to the sovereignty of the individual.

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Blog author: jcarter
Thursday, March 31, 2016
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An Ethicist Reads The Art of the Deal
John Paul Rollert , The Atlantic

Donald Trump succumbs to the age-old temptation to see capitalism not as an economic system but a morality play.

Welfare System Is ‘Anti-Work,’ Researchers Say
Mariana Barillas, The Daily Signal

The war on poverty is a war on work, the authors of a new book that criticizes the nation’s welfare system assert.

Again, What Is Economic Freedom?
Jeffrey Tucker, FEE

Quite often when I am interviewed, I get the question: What precisely do you mean by “capitalism”? It’s an excellent question. The great debate among capitalism, fascism, and socialism suffers from a lack of clear language.

Nafta May Have Saved Many Autoworkers’ Jobs
Eduardo Porter, New York Times

There are still more than 800,000 jobs in the American auto sector. And there is a good case to be made that without Nafta, there might not be much left of Detroit at all.

23-VIEW-master675Under the feudalistic societies of old, status was organized through state-enforced hierarchies, leaving little room for the levels of status anxiety we see today.

For us, however, status competition ranges wide and free, leading to multiple manifestations and a whole heap of status signaling.

Such signaling is as old as the free society itself, of course. Whether sending their children to fancy classes and fencing lessons, accumulating ever-expensive luxury goods, or boasting in the labels of their fair trade coffee and the nobility of non-profit activism, aristocrats have always found ways to signal their superiority.

Yet these preferences have shifted over time, the present form of which is carving out its own unique space. In a recent report from the Adam Smith Institute, Prof. Ryan Murphy explores the situation, noting that while past generations were more concerned with “conspicuous consumption” and “keeping up with the Joneses” – chasing faster cars and bigger diamonds – the current pursuit of status has adapted toward “conspicuous authenticity.”

We are now seeing a “new status signaling,” Murphy observes, where society has “moved beyond associating ostentatious displays of wealth with high status,” opting instead for behavior that signifies we are above and beyond such base behavior. (more…)