A Lesson on Capitalism

Claudius IIFrom some of the emails that I have received, it sounds like some of you people don’t understand how capitalism works, and what makes it inherently better than other systems.

True capitalism allows the free hand of the invisible market to control everything. You shouldn’t regulate this hand. That’s why it’s called the “free hand“. It moves money from place to place and decides what everything and everyone is worth, thus determining who should be rich and who should be poor. The reason that it’s the “invisible market” is that you can’t see what’s happening. This might sound capricious, but remember that there isn’t a real hand doing this. It’s a metaphor. The hand represents the enlightened will of the people. When people go around from day to day, they buy things. They buy the best thing that they can using the money they have, and then the people (and corporations, who are now recognized as people too) who make these things make money. So the people who make the best things for the least money get rich. Anything that you do to try to regulate this process only hurts capitalism, which then can’t reward those who deserve rewards and punish those who don’t.

Liberals hate capitalism. They want to help people, but that is a horrible idea. Punishment by capitalism is the only thing that makes people want to be productive members of society. If people get things for free, then they’ll just sit around the house breeding rather than going out there and inventing things, or going out there and making things that other people invented. The insidious part is that this is a feedback loop which eventually makes more democratic voters. I believe this is the primary way that democrats get elected: by encouraging the production of more democrats. It’s a long-term strategy, but that’s how democrats work, like rust on a bridge. This is also why charity is bad. So long as people think that someone might help them if things get too bad, there will be some perceived safety net and poof! there goes any incentive to succeed.

One Response to “A Lesson on Capitalism”
  1. Stewart says:

    As what you might call a ‘liberal’, I find it quite insidious (and a sweeping generalisation) that you suggest all liberals ‘hate Capitalism’. That is not so.

    Besides which, regulation does not necessarily ‘hurt’ Capitalism. When externailities are present, the invisible hand of Capitalism has actually failed to deliver maximum efficency. Government can ofset the burdens of those externalities through either subsidy or Pivogian taxation (since Business has no incentive, on its own, to offset externalities whatsoever).

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