3D printing will break the Malthusian Box… again.
April 5, 2013 § Leave a Comment
In case you missed it, read my post at Values and Capitalism on 3D printing HERE. Moral of the story: creation always outpaces consumption. Hollywood commonly depicts humanity as a virus that constantly feeds on resources until they are used up. People say we must cut back in order to survive. It’s not a new idea, but it is a debunked one. We are limited only by our lack of imagination and faith in the creative power of human beings.
Values and Social Capitalism
May 25, 2012 § Leave a Comment
Over at Values & Capitalism this week I share thoughts on “social capital”—the idea that voluntary community associations increase social trust and cooperation, creating an environment suitable for democracy and capitalism. From this premise, we find that liberty and virtue share a reciprocal relationship, where they both depend on and enhance one another. Read the post here.
Is Price Gouging Immoral? Should It Be Illegal?
April 30, 2012 § 1 Comment
Is Price Gouging Immoral? Should It Be Illegal?
The folks at LearnLiberty.org are creating some excellent and rather entertaining videos on liberty and free markets. This short video shows how price gauging during an emergency—an act commonly viewed as inspired from the devil himself—is merely a function of the market finding a way to deliver goods to the people who need them most.
I heard a great EconTalk podcast a while back with Russ Roberts and Mike Munger on this very topic. Paradoxes like these are one reason I enjoy economics. The bigger reason is learning how to actually help people in need instead of making situations worse.
Libertarianism, Conservatism and Christianity: Can coercion bring glory to God?
April 12, 2012 § Leave a Comment

A discussion has been ongoing at Values and Capitalism over the relationship between Christianity and libertarianism. Does the libertarian emphasis on individualism and license jive with Christian values of brotherhood and morality? And does conservatism offer a different answer? This morning’s post examines these questions and more >> click here to read the blog.
Purpose & Prosperity: Linking Christian Ideals with Sound Public Policy
June 17, 2011 § 3 Comments
C.S. Lewis wrote in Mere Christianity that God wants “a child’s heart but a grown-up’s head.” Followers of Christ are charged, by the ethos of our calling, with a high standard of practical reason, fused with compassion. When we carry our faith to the political sphere, we must do so with grounded understanding, not idealistic, emotive or superficial thinking. This means that the abdication of our duty to educate ourselves in the unsightly “secular” forces of politics and economics is morally unacceptable.
To the detriment of our own effectiveness, the Church has largely overlooked the relevance of these studies to the Christian mission. Through political philosophy, we examine the relationship of power and protection, and the proper extent of the state. There are important implications here for those who believe the individual has a right to free will. But it is the economic sphere that seems to have caused a phobia in religious discourse, even though the central concern of economics is, in fact, human needs and how they are met through voluntary service—an arrangement far preferable to political coercion.
While many people—including religious leaders—have spoken against capitalism for its ability to amplify greed and materialism, a number of Christian scholars and organizations are helping to reverse that view and to make the case that economic liberty is not only efficient, but morally superior to any other known system. Tragically, the intellectual overlap of theology, economics and politics is near absent in Christian higher education, leaving society in the dark as it seeks ethical answers to practical problems.
“…the intellectual overlap of theology, economics and politics is near absent in Christian higher education, leaving society in the dark as it seeks ethical answers to practical problems.”
I visited two organizations over the last two weeks that are trying to fill this gap and alter the national dialogue. The Acton Institute has been building a case for the “moral foundations of a free society” for twenty years. Their “Acton University” conference in Grand Rapids, Michigan has become an ecumenical Mecca for Judeo-Christian thinkers who affirm the value of ordered liberty. The American Enterprise Institute is also beginning a new initiative on values and capitalism. Their “Purpose & Prosperity” conference brings evangelical undergraduate students to this established DC think tank to engage with scholars on the critical issues of our day, and learn how to evaluate them through sound principles.
Both groups are proclaiming the same, as I call it, freedom gospel: our Creator values the person and his/her talents, and desires hearts of humility, responsibility, service and stewardship. From this basic premise, the individual is the central decision-maker, not the state, and the dignity of responsible human creativity and work ethic replaces government mechanisms for the distribution of wealth and opportunity. The latter method is spiritually void, and robs the soul of social value. Our faith also has meaningful implications on the roles of the family, Rule of Law and personal accountability in a healthy economic society.
“Our Creator values the person and his/her talents, and desires hearts of humility, responsibility, service and stewardship. From this basic premise, the individual is the central decision-maker…”
Christians should resist state-run solutions characterized by imposed charity and resentful class warfare, where the vulnerable are cast as victims, incapable of achievement and disconnected from their own choices. We should instead advocate a system that rewards service and selflessness, minimizes political controls and increases well-being at all levels of society.
To apply the old adage, the Church has largely embraced the idea that if a man is hungry, a bureaucrat ought to transfer to him a fish from someone else’s catch. It seems more consistent with Christian virtue, however, to teach him how to catch fish himself, then ensure that he can keep the rewards of his labor, not only so that he can eat, but so that he can feed his family and perhaps open his own fish market, providing employment to his neighbors and prospering his community.
I encourage those interested in public policy issues to familiarize themselves with the Acton Institute (www.acton.org) and the American Enterprise Institute (www.aei.org). Surely other groups are doing similar things, but my personal experience working with these great organizations allows me to lend personal endorsement, which I am very eager to do.
Fwd >> The Parable of the Referee
April 7, 2010 § 1 Comment
The principle of small government explained in an illustrative nutshell. It’s well worth the 5 minutes.
(Originally posted on April 6, 2010 by DOCTOR ZERO at HotAir.com)
I often hear people on the Left accuse the defenders of capitalism of wanting completely unregulated markets, in which helpless citizens will be stripped of all legal protection, and placed at the mercy of rapacious bankers and businessmen. This is a straw man of such towering size that Nicholas Cage can be glimpsed inside its head, holding his broken legs and howling for his agent to land him a part in a better movie.
There are other choices besides anarchy, or a regulatory State that directly controls over half of our economy. Far from opposing all regulation, I maintain that clearly written, honestly enforced, minimally intrusive laws are both just and essential for wealth creation. A nation’s wealth lies in transactions between its citizens, and the pace of those transactions would be greatly reduced if consumers had no confidence in providers. Shopping malls would be considerably less active, if the shoppers had to assume every food product was potentially poisonous, every piece of consumer electronics could explode, and all of the merchants were thieves.
Clearly written and honestly enforced regulation is not easy to come by, these days. To understand why, imagine that two football teams assemble for a game, under the supervision of a single referee.
As the first play begins, one of the players complains that the referee has made illegal movements across the field. The referee laughs and explains he cannot be bound by the same rules that constrain the players, or he wouldn’t be able to do his job properly. He must be able to move up and down the field at will, in ways that would earn penalties for the players. Common sense supports his assertion, and the game continues.
The referee begins calling all sorts of penalties, invoking rules he has created on the fly. The players object, saying the rulebook accepted at the beginning of the game should be used without alterations. The referee mocks this notion. The field has grass, but the rulebook was written for a dirt field. It’s cold outside, and there have been some snow flurries. The game will continue into the night, under electric lights. The teams include players of different sizes and fitness levels. More complex rules are needed to ensure a good game!
By the end of the first quarter, the ref announces it’s too hard for him to administer such complex rules by himself. He begins pulling players off the teams, and deputizing them as assistant referees.
Early in the second quarter, the home team begins complaining of unfair calls, made in favor of the visiting team. To their astonishment, the referees actually begin tackling home team players, intercepting passes, and running touchdowns! The chief official explains that he felt the visiting team was outmatched, and had little chance of winning on its own, so he decided to make things “fair.” The home team is particularly upset that the biased referees retain all their special advantages – they can move around the field at will, and ignore the play clock. The chief official dismisses these complaints, assuring everyone his actions will enhance the “competition.”
The spectators are initially amused by the wild spectacle of referees tackling players, but the game quickly becomes boring. The home team becomes so confused and demoralized that their players begin to leave the field.
After the final whistle, the chief official is seen collecting money from a shady character near the locker room. It turns out the official had bet heavily on the outmatched visiting team. He had a financial interest in the outcome of the game all along… and he’s the only real “winner.”
Like the referees of a football game, the government must remain completely outside the markets it regulates. Contrary to the absurd sales pitch for ObamaCare, the State cannot enter the health insurance market as a “competitor.” It shouldn’t develop interests that will sour its regulatory powers into corruption.
By its very nature, government has access to power and resources which no private enterprise can equal. It can’t work any other way. We can’t treat the military as a business enterprise, to be shut down if it doesn’t rake in sufficient profits. We must have government resources to address disasters, and most citizens would insist the government be provided with funds to care for the desperately poor and sick. Those who enforce the law must have a measure of power beyond the law: sky marshals carry guns onto airplanes, soldiers have access to heavy weapons and high explosives, government auditors can demand access to information a business would never share with its competition.
To be trusted with such power and resources, the State must practice strict adherence to a basic set of laws which constrain its behavior, and which it cannot easily disregard or change. The rulebook for the American game is her Constitution. Fidelity to those rules would produce a small State with less influence to satisfy the appetite of hyper-competitive players who wish to cheat at the game… or its own appetite for purchasing votes and imposing its ideas of “fairness.” Disdain for the Constitution has led us to the present spectacle of referees who outnumber the players, unemployed players sitting dejectedly on the sidelines, and a dwindling number of investors willing to bet on a rigged game that will be decided by the whims of the officials.
The idea of a large, and yet scrupulously honest State is fraudulent to its core. As the State expands in size, it inevitably develops interests that lead to corruption. Its power becomes so valuable that bribery is an everyday transaction, camouflaged in sanctimonious rhetoric. Taking responsibility for errors and wrongdoing will always be less attractive than dipping into the public treasury for a few billion greenbacks to paper over the damage. As industries are first taxed, then regulated, and finally nationalized, the referees begin tackling players and running touchdowns. The only honest government is small government, so if you’re sincerely opposed to political corruption, that’s what you should insist on.
Classism: The burning of a hillside city
January 5, 2010 § 1 Comment
Stocks are down, home values are down, jobs are down. People in every corner of America are struggling to get health care and a decent meal, and the poor and destitute around the world are suffering. All the while, the rich CEOs, doctors, insurance companies, your boss, and the guy down the street who recently renovated his home are all stuffing their pockets. America is a nation ruled by greed, apathetic toward any person or cause which doesn’t provide a financial advantage.
Or so goes the narrative.
As the fog of racism fades into our national past there is a new cancer looming in society that threatens to destabilize our nation through the tyranny of the masses. It goes by the name of Classism – prejudice on the basis of social and economic achievement. The term, like “racism” is commonly and mistakenly used to condemn hate from one group and ignore hate from another, when in fact the prejudice runs both ways. Many people are quick to point out the advantages of the affluent, and demonizing them works to advance their cause of wealth redistribution. There is typically a solid majority of our society that values hard work and innovation, and seeks to preserve the values of capitalism. However, in recent years fragments of this group have begun to break away, casting a shadow of doubt over the future of liberty and prosperity in America – and, by extension, the world.
One of these groups is formed by pseudo-anarchists who – largely fueled by conspiracy propaganda – have come to see nearly all authority as invalid and corrupt. They believe that economic, social, or political power is achieved only through making corrupt deals and stepping all over the rest of us. Hence, their authority cannot be trusted, as it will surely be used to make the “rich richer, and the poor poorer.” To be clear, they aren’t opposed to capitalism as a system. They like freedom and low taxes. But they see themselves as righteous enemies of corruption, and those “enemies” usually take the form of anyone who is financially successful. Their rants tend to sound a bit like the last lines of Marx’s Communist Manifesto: “Let the ruling classes tremble at a Communistic revolution. The proletarians have nothing to lose but their chains. They have a world to win.”
You simply cannot be pro-capitalism and anti-wealth at the same time. This “us” versus “them” approach has the net effect of working against private enterprise – a mentality which is the very cause of government expansion. It is a tragic irony.
During the French Revolution, a printer named Jean-Paul Marat became a leading voice for the revolution by filling his newspaper distorted rumors and vitriolic rhetoric against the ruling class. He advocated no other solution in the name of liberty than the severed heads of the practically the entire aristocracy and anyone that spoke against the revolution. While many modern-day anti-government activists have taken on this role, I believe a better persona by which to model the cause of limited government is that of John Adams, who deplored the violence in France, pointing to justice and reason as the appropriate ends of revolution. What is a revolution worth if justice is not the end result?
Another section of the typically pro-capitalist group that is taking up arms on the other side is a wave of Christians who have been influenced by books such as Don Miller’s Blue Like Jazz, and Jim Wallis’ God’s Politics, which preach a message of Christian utopianism; that if we will only change the way we live, we can rid the world of hunger, pain, poverty and war. How should we change? By adopting practices and policies that mirror the selflessness of Christ – seeking only to serve and never to gain. They criticize American culture for it’s over-consumption and capitalist system, which “promotes greed”, and is directly in opposition to the call of Christ.
While there is merit to the demand for moderation, this view goes above and beyond, subtly demoralizing any act through which an individual seeks financial or social gain. This view naively posits that gain for one person equals loss for another, therefore it is un-Christian to seek prosperity or advantage. After all, Christ never sought political power, and he told his disciples on several occasions that they should not expect financial rewards, or any sense of stability or security, for their service to God. Therefore, our government should increase welfare programs, stop military action and open the borders, among other things.
This argument is deeply flawed. As Jay Richard’s points out in his recent book Money, Greed & God, there is a difference between selfishness and self-interest, and that through self-interest we must pursue the course of wisdom. Is getting an education an act of selfishness? Protecting one’s family? Pursuing a promotion on the job? Of course not, they are goals which any reasonable man would seek. If, in fact, we are concerned with wisdom and not simply off-the-cuff judgments, we will see that capitalism is far more preferable, when compared to its alternatives, for the alleviation of poverty and disease in the U.S. and the world. I’ve written posts on this before, and surely will in the future.
Both of these segments of society have turned against our leaders in both the private and public sectors. Why did I refer to classism as cancerous? Two reasons: first, it is heavily influenced by lies, which it passes on to others in society. Second, it threatens the sustainability of our nation, which serves as a beacon of liberty, justice and the message of Christ, in the world. To many such a statement may sound extreme, but it’s quite simple really: By crippling our current leaders and stifling the ambitions and development of a generation of Americans, the City on a Hill will be reduced to something more akin to a village on the plain.
Perhaps the biggest lie on which these destructive arguments rest is that the economic “pie” is finite, so if a large piece given to one person necessarily means a smaller piece given to someone else – hence, capitalism is inherently selfish. In reality, wealth is created. How much total wealth was there 1000 years ago, compared to today? Most people in the middle ages were poor, except for a very small ruling class, but even then, middle class families today enjoy many of the royal luxuries of previous centuries. The total volume of wealth circulating among all classes is vastly more, and continues to grow – thanks to capitalism. America’s poor are better off than they were even 100 years ago. Because of progressive social programs? No. Socialism never made anyone better off, though it did manage to kill countless millions in Russia, China, Germany, Cambodia, Cuba, et cetera. The poor are in better condition because of the freedom to invest, innovate, compete and provide services and products as society demands.
It is a system on which our nation has been built, and from which it has acquired significant wealth. Everyone in the society benefits from this wealth, even if not proportionately. To think that it should be proportionate is to ignore the reality of the free society. There will always be the poor and the rich, and this is almost entirely based on whether a person can provide a valuable service to another. I find it an interesting phenomena that the building of wealth and the service one provides to society are so closely related. (“give and it shall be given…)
The true cause of poverty is that some among us fail to provide any service which would provide balance to a basic cost of living, by their own choice or not. They either cannot work, or their work simply isn’t of value. The way to fix this is not through forcing income redistribution and limiting individuals from seeking their full potential, but rather, allowing the system to function properly, raising the standard of health and well being for all. For those who simply cannot find valuable work, it is sensible to have programs to assist them through various means, but this does not have to be entirely funded – and therefore controlled – by the state.
The more taxes are taken up for government programs the less of a responsibility is placed upon the individual to be directly involved in the choices of sacrifice. If we remove personal choice from charity, what moral achievement have we made? People should be allowed to give directly to a person in need, or to a local church or charity who knows the needs of the community best, and are not restricted to the limitations of the state – most importantly, the full and unhindered message of liberation through the gospel of Christ.
Classism, which has taken hold of much of europe in the last century, comes with an inherent desire to weaken the influence of leaders in society, attempting a transfer of power to “the people.” Two very important illusions are created by those who advocate this. One, that the “people” are, in fact, a unified group with entirely unified goals. The second is that the very nature of power is the same, regardless of who fills the position. While the people may be unified in a common enemy at first, their common bonds will dissolve at the very moment of victory. Power of the “people” merely means that the will of some over the will of others.
Friedrich Hayek, in his book, The Road to Serfdom, written during the fight against Nazi Germany, argued that socialist ideology, spurred by classism and anti-capitalist resentment, attempted to create a more just world by using a powerful government to “organize” the economy so that each would get a more “fair” share. The very things which socialists leaders from Germany, Russia, Italy and elsewhere hoped to achieve in the early 1900s–liberty and equality–were effectively stamped out by their radical collectivist reforms, which brought only massacre. We must learn from these lessons, so not to repeat the mistakes.
Protagonists of the class war also fail to see the hypocrisy among its advocates. They condemn the wealthy for owning expensive vehicles or purchasing front-row seats at the ball game, but they feel they have a right to spend their money on the latest tech gadgets and the very new hit movie – on the big IMAX screen. They condemn CEOs for making a million dollars as they employ thousands of people and provide valuable services, but gladly endorse actors and athletes who make much more. They condemn government officials from making deals and funding wars, though they ignore the fact that we all make deals every day and protect our own homes and property from harm. This double standard is a puzzle which America’s affluent must constantly try to navigate. No one wants to be seen as elitist, selfish or arrogant. It is assumed that as you have a better job you will buy the things you really want but couldn’t afford before, but it seems there is a curve to this. If you make a good amount of money you are expected to buy only what everyone else does, lest you be labeled a snob.
Here are some sobering facts: Every nation is greedy. Every nation wants the economic and military strength America has. Every person would rather be wealthy than poor. Every person wants things they can’t afford. Every person seeks to protect what is valuable to them, and pursues the path in life that will help accomplish their goals.
These are not new, nor are they unique to Americans or to wealthy people. Humanity is kind and it is corrupt; generous and greedy; loving and hating; serving and controlling. To cast blame for evil on any race, nation, class or any other social group is not only wrong, but terribly destructive. But when we embrace what is wise and good, and celebrate the leaders of our society – immoral behavior notwithstanding – we are creating a unified body politic, moving toward peace, justice and prosperity, that can effectively bring about these things in every corner of the globe, wherever they are welcomed.
A PROUD CAPITALIST PIG
April 9, 2009 § Leave a Comment
There are sick, poor and dying people all over the world who have to search for enough food to barely survive on while we are comfortable in our air conditioned homes and overstocked supermarkets. I am a proud Capitalist pig.
I’ve listened to many people condemn and vilify our nation, calling us greedy, self-interested, wasteful, apathetic consumers. And in some respects they’re right. It’s difficult to grow up in a relatively wealthy society and not take anything for granted. There are plenty of people who are greedy, wasteful and apathetic – and they come from all income levels. But Americans are also givers.
A very informative article put out by The American Enterprise Institute says that Americans gave $295 billion to charity in 2006. This, even after Uncle Sam takes his share. When put in context, in 2005, Americans gave per capita 4 times more than the French, 7 times more than Germans, and 14 times more than Italians. We also volunteer more, even when the same exact socioeconomic conditions are compared.
And what of rich people? Those greedy, white-collar rich people. Don’t they hoard the money to themselves and make everyone else work for pennies to fill the pockets of their silk-lined suits? Yeah, probably some of them. But when American charitable contributions as a percentage of income are compared, the wealthy give, on average, about 3%, middle incomes 2.5 % and low incomes 4.5 %. Of course, that translates in to massive numbers for wealthy contributors. Might I add that self-described “conservatives” are 30% more likely to give than “liberals” – a contradiction of popular public stereotypes.
Ok, so we give a lot of money to our churches and favorite charities, but what about starving people in foreign nations? As it turns out, America is the number 1 giver of foreign aid in the world. We give more than twice that of the U.K., where the taxes are so high due to government programs that most people consider their giving already done for them. I, for one, believe that the element of choice is an essential part of the giving equation, and therefore taxes do nothing more than remove my personal involvement in that to which I give, and replace it with bureaucracy.
The fact that Americans in general show great concern for the well-being of those in need, including third-world nations, is an encouraging marker that our moral compass is still pointed in the right direction.
While some Criticize capitalism, saying that it is impersonal and fueled by greed, I have to respond with a reminder of its benefits. Not only is Capitalism the only economic system that protects the liberty of individuals to buy and trade; not only does Capitalism allow sellers and consumers to set the fair-value of a product instead of government; and not only does Capitalism encourage innovation and distribution; but it is Capitalism that is responsible for the upswing in general peace, prosperity and quality of life in the entire world as its influence has grown. While the U.S.S.R. was crushed under the poverty that Socialism channels, do you think they were able to contribute to anything other than keeping themselves afloat? Could America be sending out billions of dollars, thousands of doctors, teachers and missionaries, or medical supplies, treatments and medicines to nations all over the world if we did not have the economic prosperity and technological liberty that we have in the States? Not at all. It would be a very different world had America never existed.
Yes. I’m proud to be a Capitalist. Not because I’m greedy, but because it’s the only way to both protect and serve all people, in all societies. But it doesn’t come without its price and without its pitfalls. It’s looking at the bigger picture that allows you to see that it is worth fighting for. Capitalism will protect us as long as we protect it.
The Case for Capitalism
June 7, 2010 § Leave a Comment
Having returned from my week-long seminar on free-market economics, it feels like a good time to address a question that seems to be at the forefront of the public mind—is Capitalism helping or hurting our society? Those who pose this question are typically concerned that in an economic system where human actions are motivated by profits, the businessmen will always cheat, the wealthy will always win, and everyone else will spend their lives trying to keep their heads above water and have a decent life. There is also a deep concern for the poor, who—without the means to “pay up”—will be marginalized and forgotten. And, of course, we recognize the unattractiveness of incessant advertising and self-gratification, envisioning a future world similar to the one depicted in Pixar’s WALL-E, in which overweight and ignorant pseudo-humanoids are carted around a corporate space-city while the earth lies rotting from over-consumption.
Fear not, my friends—that world will only exist in a movie script. Capitalism certainly has its drawbacks, but as I hope to explain, it is the most effective and least dangerous method of human progress known to man.
WHAT IS CAPITALISM?
Free trade, free enterprise, free markets… they all mean the same thing: voluntary exchange. It’s the idea that each person has the right to save, invest or spend their resources in whatever manner they see fit. You could put this under the “pursuit of happiness” column, but we have to recognize that “happiness” (quality of life) is completely subjective. Given limited choices, one person might prefer ice cream over cake, while another prefers cake over ice cream. For some, the choices are less luxurious, as they must decide between clean water and bread. Nevertheless, we exchange our time, talents, energy and goods for the things we value at any given moment. The freedom to do this without government regulation is the essence of Capitalism.
THE ECONOMIC ARGUMENT
Imagine two farmers. Person A has a goat, and person B has a donkey. They are both useful, but for different things. It just so happens that they each have what the other needs, so they trade. The word “trade” tends to connote an even exchange; one thing for another thing of equal value. But this is false. People don’t trade if they see absolutely zero benefit. Rather, they exchange for something more valuable to them than what they had to begin with. Trade—whether farm animals or standardized currency—always results in both parties gaining something. The end result is a net increase in wealth/happiness/quality of life/standard of living.
The very fact that trade has this effect makes people want to participate, but trade is impossible without something to offer. Therefore, the opportunity to pursue trade without limitation provides a valuable incentive to be productive—to labor and create. When millions of people are striving to do this, there is real growth in the economy, and an increase in the standard of living for all who participate (imagine a system where that incentive does not exist). Thus, one might ask, “what about those who don’t, or can’t, participate?” They benefit too, since as goods become more available, they also become more affordable. This is only one of several ways the poor actually end up better off.
THE MORAL ARGUMENT
The moral aspect of capitalism is apparent on at least two fronts: one in its cause, and the other in its effect. While the driving force of free trade is ultimately to improve one’s own life, it is inherently and entirely dependent on service to others. If you intend to make an exchange, the good or service you offer must be of some value to the other person. That’s just common sense. Therefore, the only way to acquire wealth—outside of inheritance or gambling—is by looking for ways to meet the needs of others in such a way the makes an exchange mutually beneficial. This requires the businessman to know what his customers are willing to pay, and keep his costs down below that mark. Thus, the wealthy CEO can get his burger for $20 at the best place in town, and the janitor can get his for $1 at the fast-food joint. You can look at this with disdain because the wealthy get to live so much “better”, but you can also look at this with thanks because the hungry are eating burgers instead of cornmeal. The opportunity and competition provided in a free market results in more people having more things at lower prices—not just the wealthy.
For those that are so unproductive that they cannot acquire even the essentials of life, it is feared that they must be left to government assistance through tax dollars. But in a world where goods are cheap, economic mobility is wide open, and massive wealth can be achieved by more individuals, the old, sick and/or destitute can be supported by voluntary gifts. Thousands of hospitals, libraries, schools, food pantries, shelters and other services are provided every day through the generous donations of wealthy and many middle-class individuals. Private organizations range from neighborhood community groups and centers to nation-wide entities like the Red Cross, Salvation Army and YMCA. This type of charity giving is only prevalent in a capitalist economy where financial growth is a constant and personal responsibility is the cornerstone. The private “market” has been far better at addressing the issues of disease and poverty than any government agency. Just look at the Texas Medical Center, here in Houston—where people come from all over the world to receive the very best treatment available, and new methods are being developed every year. The situation for the poor would be immensely better if government regulation had not already impeded advancements in many areas.
THE LIBERTY ARGUMENT
There is but one alternative to a system where choices are made by the individual, and that is a system where choices are given to the individual. And who is the giver? To say “government” is too ambiguous, so we can be more specific by saying “people who are elected or appointed to public office, who are paid in taxes, and who have many different interests and influencing pressures.” That seems a bit more accurate. So the idea behind placing government in charge of economic activity is that politicians and bureaucrats are better equipped to judge the what, when, where and how of everyone else’s needs and wants. That’s both insane and dangerous.
“But,” the advocates of government regulation say, “someone’s got to stop companies from doing harmful things!” And this is true. But the proper judge of good or bad business is the consumer—not government. Why must we trade a power that is temporary and voluntary for one that is permanent and requisite? All that is done by placing government over business is the trading of one selfish interest for a greater one—denying the rights of buyers and sellers, while increasing the power of politicians and the associations which influence them.
Did the Federal agency who examined the BP well prevent the explosion and subsequent leak? Has the Department of Education improved U.S. schools? Has the War on Drugs or the War on Poverty reduced either one of these in the last 30 years? Not at all. For reasons that need not be included here, government agencies are both expensive and ineffective—especially when compared to the private market. This isn’t an epiphany. Washington D.C. is widely criticized for its corruption and deal-making. If all of this is true, then where does the demand for more government control come from? Well, we can name at least one place: Washington D.C.
Liberty is a precious and valuable thing that is easily taken for granted. There is a constant temptation to use the tool of law and regulation to achieve the changes we want to see in society, but we must be extremely careful about what keys we choose to hand to political authorities. Eventually we will find that we are the ones inside the cell, at which point it will be too late.
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A special keynote/discussion titled “Is Capitalism Worth Saving?” will be held on June 30th at Houston Baptist University and will include Dr. Arthur C. Brooks, President of the American Enterprise Institute, and Dr. Paul Bonicelli, HBU Provost. Go here for more info.
Special thanks to BureauCrash.com for the “Enjoy Capitalism” image.