Three definitions: dictionary version, my general understanding, and an opponent’s summary.
1. “An economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market.” The word “free” is key there as the dictionary also gives “communism” as an antonym.
2. Businesses look to capture as much income as the market will bear. If prices are too high, businesses risk losing customers. If prices are too low, businesses risk not being able to cover their expenses. But instead of coming up with a “comfortable” margin to cover the bills and stay afloat, capitalism encourages businesses to go for as much margin as they can get away with. And businesses don’t have to feel any guilt because it’s not their fault if the market is willing to bear high margins. “How can it be my fault if the market is willing to pay $10.00 for an apple and I charge $9.99 and make a large profit?”
3. Michael Moore on Jay Leno’s new show recently: “Capitalism is legalized greed.” He went on to make the point that the wealthiest 1% of Americans possess more wealth than the bottom 95% combined. His analogy was 10 people sitting around a table with one pie. The result of capitalism is that one man can take 9 pieces and leave 1 piece for the other 9 people to share…and this is somehow okay…as long as the “market was willing to bear” whatever various means the man took to get himself into that position.
For me, it’s an interesting topic, because I love “freedom” as I understand it and I like the idea of people being allowed to make “plenty” of money to be comfortable however they define comfort. But it is troubling to me that there are so many people who are “less fortunate” in the world and have no reasonable hope of ever having anything resembling wealth, while other people in the world have so much wealth they can hardly imagine how it could ever run out and they keep piling more wealth on top of that.
I am neither of these people of course. I am far too comfortable to complain of not having “enough” and yet my bank would testify that I am not so comfortable that I should be giving money away.
So my ponderings on this point are only theoretical for now. It’s just interesting. Some people are very very passionate on both sides of the spectrum.
4 comments:
Michael Moore is an anti-american communist punk. Capitalism is the freedom to use your mind and labor to better your life, and reap the rewards of your hard work. There are very few people who are "less fortunate" in the sense that they just can't help where they are.
If you could rewind a person's life, you would see that they made decision after decision that lead them to their current position. Did they study and work hard in school, or did they do drugs and skip class? Did they get to work early and stay late to do a good job and get that promotion? Or, were they the employee who is always ten minutes late and the first one out the door? We all are a product of our decisions. We all make mistakes and suffer failures, but it is how we respond to those mistakes and failures that determine whether we will be successful.
Chad
I thought I would post two quotes that sum it up:
"America's abundance was created not by public sacrifices to 'the common good,' but by the productive genius of free men who pursued their own personal interests and the making of their own private fortunes. They did not starve the people to pay for America's industrialization. They gave the people better jobs, higher wages and cheaper goods with every new machine they invented, with every scientific discovery or technological advance -- and thus the whole country was moving forward and profiting, not suffering, every step of the way." [Ayn Rand]
"Politicians never accuse you of 'greed' for wanting other people's money --- only for wanting to keep your own money." [Joseph Sobran]
Chad
Hi Mike,
I think your blog idea is a good, fun way to "vent", if need be, for lack of a better word.
I think you can see the answer to Capitalism. The answer is somewhere between Capitalism and its antonym, Communism. If one person holds all the power, he tends to be less fair to his underlings. Do you remember the movie Fist, with Sylvester Stallone and the battle to start the Northern Unions where the workers were treated like utter slaves.
There must be a mediator between the owners of the capital and the rest of the people to help level the playing field. The mediator is the government.
I think that Capitalism is necessary for growth in an economy and incentive to the owners and workers to do the best job they can do. In Communism the incentive to work and do your best is completely removed. You can work your butt off or sit on your street broom, you'll get the same. That's why I believe 'pure' communism has gone down the toilet. China is still considered communist but their survival is based in it's shift toward capitalist ideals and rewards and incentives being given for better performance.
Our country says that it is Capitalist and it is but it's not capitalism run amuck. Michael Moore is a comedian and a very good one. I see completely where he's coming from but some people seem to act like he's handling a sacred cow that will break to smitherenes if it's not revered and bowed down to.
The markets, corporations, small businesses, all these are allowed to operate freely in our economy. But other entities like schools and government functions (roads, government operations) and even non-profits, like where I work are industries that the society has deemed necessary but cannot sustain themselves in a free market economy. The government mediates (transfers funds) between the Capitalist entities and the population as a whole to move excess monies made from the capitalist to those entities deemed necessary by the government.
The government has a balancing act between charging too much in taxes and stifling incentive, just like communist, and receiving enough money to stay in business.
If we had pure Capitalism, there would be no taxes, period. Taxes intrude on an individual's freedom. No real estate tax, sales tax, income tax, tax on anything! When the government tax an individuals money and makes it's own decision how to spend it, it is a shift toward the left--communism. Of course you see the continuum, until the government keeps all your money and your communist. This continuum crosses from right to left: fascist (monarchy), libertarianism,conservative,moderate,liberal, socialism, communism.
Somewhere in the middle is ideal, where there is still incentive to get out of bed in the morning and your not a puppet or possesion of your government...my thoughts on capitalism...it's all in the mediator. Thank God for the foresight of our founding fathers.
Thank you Chad and John, good comments. I'm away from my computer and typing on this phone is not too great, so I'll check back in later this weekend to make a comment or two.
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