Since our education system (including K through 12 AND the universities) do not teach civics, American history, or economics in any meaningful, honest, or unbiased way thus creating generation after generation of ignoramuses, then let us begin here with some basic definitions. Capitalism is defined as, “an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.” In other words, people are free to exchange money for goods or services that they want without government interference. Socialism is defined as, “a political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.” In other words, the state decides things as opposed to individuals, so kiss your individuality and freedom goodbye.
In a capitalist system, it is incumbent upon the business to cater to the needs and wants of consumers who are essentially voting with their money and thus holding the business accountable. Consumers decide the fate of a corporation or business. If the service is poor, then people will purchase elsewhere and eventually that poorly run business will go bankrupt. This is why competition is good.
In a socialist system, government elites decide what consumers get and how much they pay for it. This is why government bailouts for businesses are a terrible idea. This removes any accountability to customers and stockholders, removes any ramifications for producing an inferior product, provides lousy customer service, and essentially rewards inefficiency. The government, through things like food stamps and other such welfare entitlement programs, allows for the benefit of some people at the expense of others.
Venezuela was once the wealthiest country in South America. Now, due to socialism, it is a hell-hole where a million Venezuelan dollars is worth about 55 cents in the U.S. In a speech at Harvard University, Danish Prime Minister Lars Lokke Rasmussen said, “I know that some people in the U.S. associate the Nordic model with socialism. Therefore, I would like to make one thing clear. Denmark is far from a socialist planned economy. Denmark is a market economy.”
Too many people believe that capitalism is all about greed, and that it helps the rich while hurting the poor. This is false. Not only is a free market system economically superior to other models, but it is morally superior as well because it involves voluntary actions between individuals. Unlike what Gordon Gekko preached in Oliver Stone’s movie Wall Street, America’s economic system is not a zero-sum game, it is a positive-sum game where everyone wins.
The Biden administration and the Democrat party are currently planning on raising taxes astronomically. It will be the highest tax increase since 1993. Basic economics (and common sense) dictates that the more you tax something, the less of that something you get. Lower taxes and less regulation invariably lead to economic expansion. Capitalism leads to economic democracy whereas socialism leads to economic dictatorship by the elite. Only a free market capitalist economy can produce financial liberty. Government involvement results is less power for the people.
America is the wealthiest nation in history because of capitalism. As Walter Williams said, “In a free market, the ambition and the voluntary effort of citizens, not the government, drives the economy. This means that people can shape their own destiny.” Sounds pretty moral to me. Traditionally, throughout history, the only way to acquire wealth was through robbing, stealing, and pillaging. Adam Smith’s Wealth of Nations is regarded as the most important economic work ever written for a reason. He saw the division of labor as the way to maximize production and free markets as virtually limitless in their possibility for the expansion of wealth through manufacture and trade. It was a laissez-faire policy that would encourage the most efficient operation of private and commercial enterprises.
Rush Limbaugh has often stated, “The world’s biggest problem is the unequal distribution of capitalism. If there were capitalism everywhere, you wouldn’t have food shortages.” The Pilgrims tried socialism in 1620 when they landed near Plymouth Rock; it didn’t work. There was no such thing as private property in the Mayflower Compact; it was Marxism before Marx. Governor William Bradford described it as a failure.
The one thing that all totalitarian states share in common is death. Over 100 million lives have been sacrificed over the last century due to communism, which is the final result of socialism. Rather than succumb to the propaganda fed to us by Leftists regarding the evils of capitalism, perhaps we should read, expand our minds, and realize that capitalism is what has rescued much of the world from poverty.
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