In Defense of Capitalism

“The problem is we don’t have enough free markets.”

                                                                  Ron Paul

The U.S. economy is operating with the invisible hand tied behind its back.  And that’s unlikely to change if we elect another President Clinton or a President Trump.

Unfortunately, capitalism has become unfashionable.  Media, academia, some members of Congress and others would have you believe that “profits” are bad and income inequality is America’s biggest challenge (Note: Socialist actors like Sean Penn, Susan Sarandon and Jane Fonda also make plenty of profits and contribute little to the economy.  When are they going to equalize their incomes?).

When’s the last time you heard a presidential candidate—or any politician, for that matter—extoll the virtues of capitalism?  This year, we have a socialist running for president and millions of millennials supporting him.

Hillary Clinton reacted by moving almost as far to the left as Bernie Sanders.  She did mention capitalism in the nearly ignored Democratic debates, but only to say that we need to save capitalism from itself.  She’s half right … we need to save capitalism—from politicians, academics and the legion of “activists” who are clueless about economics.

You’d think that as a billionaire, presumed Republican nominee Donald Trump would be a die-hard capitalist, but he is a protectionist whose immigration policies, if enacted, would continue to stifle business formation.  Given that he has also personally benefited from eminent domain, his support of capitalism appears to be of the crony type.

Other Republican candidates have spoken out against “crony capitalism,” but we have not seen a lot of support for honest-to-goodness, free-market capitalism.  You know—the capitalism that made the United States the wealthiest, most successful country in history.

Why Capitalism Rules

The concept of capitalism is simple enough.

In a capitalist country, trade and industry are controlled by private owners, rather than by the state.  The more private owners succeed, the greater the profit they make.  Ada

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