Why capitalism is worth conserving (and its new populist critics on the right are wrong)
“Whether the critiques come from politicians like Josh Hawley or pundits like Tucker Carlson, free-market conservatives are increasingly scolded for being overly committed to economic freedom. To no surprise, the Left continues its own critiques as it always has, spurring a strange, unspoken alliance among otherwise ideological foes.” - Acton
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if you all defending capitalism as practiced in the Estados Unidos are happy, good for you. All I know is I have worked as a faculty member at a university for 12 years. If I had received a 1% COLA each year for the last 12 years I would make $4,000 more than I do now. So, not only do I have less buying power that I used to, I have less respect. I know MANY MANY MANY are in my boat. This salary situation happened while the administration increased tuition 5-6% each year. I saw none on it. At the same time, insurance costs and deductibles have increased as well.
To be clear: I’m not defending the half socialist/half capitalist system we have here. I said earlier in the thread that a problem in the US is crony capitalism. That can only exist in a regulated economy. In other words, the problem is not too much capitalism but too little.
[josh p]To be clear: I’m not defending the half socialist/half capitalist system we have here. I said earlier in the thread that a problem in the US is crony capitalism. That can only exist in a regulated economy. In other words, the problem is not too much capitalism but too little.
You want unfettered capitalism?
[Mark_Smith]You want unfettered capitalism?
Since that term is used as a pejorative by socialists of various stripes I would have to know what you mean by the term. But yes I would. I believe most of the things people complain about in the economy are the result of Keynesian economic policy. Also, regulation that is created to, allegedly, help the consumer but really is a vehicle to exclude competition by large businesses that pay off politicians. That’s not capitalism. It’s weak tea socialism coupled with graft and political corruption to create a system that benefits a minority.
I’m sorry, but this response is silly.
No need to be sorry. But it would be helpful to be clear about what you think is silly.
Do you disagree that a smartphone was available 30 years ago? Or high speed internet? Or a flat screen TV? What exactly is silly about it?
A person living in “poverty” today has much more than a person living in poverty 30 years ago. It’s a simple fact of life, I think. But if you have evidence to the contrary, then let’s see it. “This is silly” is not a response to anything.
… if you are happy that you haven’t gotten a real raise in 30 years, fine and dandy. Console yourself with cell phones and wireless. I’ll take that and a real raise.
I think this is part of the problem. First, to say you haven’t gotten a real raise in 30 years just isn’t true. No one today is making what they were 30 years ago (most likely). It might be true that a starting wage is about what it was 30 years ago. But that isn’t the same as not getting a real raise. It might be true that adjusted for inflation the buying power is about the same (or it might not be actually true). But no one says why that is a problem. And few seem to point out that it isn’t actually true. Again, compare what you can buy now vs. what you can buy then.
The first Mac in 1984 costs $2495 which was equivalent to $6220 in today’s dollars. Go start searching and figure out how much computer you can buy for $6220 today. Today (as in this very day), the Best Buy deal of the day is a Lenovo laptop with far more computing power than the 1984 Mac for $449 (which would be $175 in 1984 dollars). Today, the smart watch most people have has more computing power than the Mac did and not only is it cheaper than the Mac. It is actually available.
Or consider TVs. This article compares cost over time. In the 1950s, TVs were $110 per square inch of viewing area. in 2017, TVs were $1.24 per square inch. Today, again at Best Buy, the first Flat Screen TV on the last is about $0.31 (31 cents) per square inch. And consider the picture quality difference.
A gallon of milk in 1995 cost $4.03 in 2020 dollars. Today (as in this very day) it costs $1.89 at Meijer.
The truth is that in many cases, the “real wage” buys you more than it did years ago. A lot of silly things get said and they can be demonstrated to be silly simply by comparing things.
ll I know is I have worked as a faculty member at a university for 12 years. If I had received a 1% COLA each year for the last 12 years I would make $4,000 more than I do now. So, not only do I have less buying power that I used to, I have less respect. I know MANY MANY MANY are in my boat.
One of the beauties of capitalism is that you don’t have to do that. You are free to sell your services to someone else and you are free to sell them for whatever someone is willing to pay you for them.
But I wonder about the meaning behind “If I had received a 1% COLA …” statement. What did you actually receive? Is this a hypothetical?
It is telling that some would object to the inhumanity of lessons regulations here, but are not bothered by the lack of any protections abroad.
I am not following this entirely. It seems like a typo there and I can’t quite discern the meaning. I am not objecting to the inhumanity of anything. I was simply pointing out that many have commented that the cost of doing business is greatly increased by regulations. Maybe we should look at whether we should have the regulations.
[Dan Miller]Either is fine. It is telling that some would object to the inhumanity of lessons regulations here, but are not bothered by the lack of any protections abroad.
I assume you mean me since we were discussing outsourcing. The problem is actually that I believe the US should not require businesses in other countries to obey our idea of ethical work conditions, whatever that means. As you alluded to earlier though, the choice is actually at the individual consumer level. Next Christmas, don’t buy any goods from countries (or businesses) that don’t meet your threshold of ethical labor practices. Several years ago I was trying to decide what motorcycle to buy. I had it narrowed down to a Honda CBR 600 or a Triumph 675. One of the reasons I went with the Triumph was their business practices. After their factory burned down they kept paying their employees for a year while they rebuilt. That may have been a business decision rather than an act of charity (cost of retraining etc.) but it tipped the scale in their favor. Capitalism allows us the freedom to make our own decision about where to buy. I think that’s great.
Freedom is the foundation of capitalism:
- Freedom to own property (of all types). Under Soviet socialism citizens could not own property. (Private ownership of enterprises and property had essentially remained illegal throughout the Soviet era, with Soviet communism emphasizing national control over all means of production but human labor. Under the Soviet Union, the number of state enterprises was estimated at 45,000.)
- Freedom to associate (eg - own assets with others. Think of the stock market where individuals own a fraction of a company - with associated risks and rewards)
- Freedom to purchase goods according to my own whims
- Freedom to live where I wish, work where I wish
We do not have unfettered capitalism in the US
Who decides what a “fair wage” is another country?
One of the interesting and seemingly ironic things to me is that those who are so concerned about “low-wage workers” here in the US complain about giving workers jobs and higher wages in other places. If you bring these jobs “home,” you will be responsible for the unemployment of people elsewhere. If higher wages are the goal, and all humanity matters, why object to spreading those higher wages around the world?
The “Law of Comparative advantage” explains foreign trade & why:
- Certain good produced overseas (linens, clothing, shoes & more)
- Why IPhones are designed in US but manufactured overseas
[Jim]Freedom is the foundation of capitalism:
- Freedom to own property (of all types). Under Soviet socialism citizens could not own property. (Private ownership of enterprises and property had essentially remained illegal throughout the Soviet era, with Soviet communism emphasizing national control over all means of production but human labor. Under the Soviet Union, the number of state enterprises was estimated at 45,000.)
- Freedom to associate (eg - own assets with others. Think of the stock market where individuals own a fraction of a company - with associated risks and rewards)
- Freedom to purchase goods according to my own whims
- Freedom to live where I wish, work where I wish
We do not have unfettered capitalism in the US
To be clear, I never said we did. The person I replied to was saying the problem was too much interference of capitalism, so I thought I’d ask.
Since we are telling stories of the heroic nature of American capitalists, let me tell another. My mother worked for a regional grocery store chain for years. Due to the generosity of the founder, she was able to have a rather healthy retirement fund. That man’s children did not want to run the company. They wanted to party instead. So he sold out to Alpha Beta, a large chain. Within a few months there were riots in LA, the home base of Alpha Beta. A few stores were destroyed. The company legally raided the retirement fund of the newly acquired stores in KS. My mom was left with nothing.
All hail capitalism! Freedom at its best.
I’m sorry that happened to your mother. That’s terrible. That being said, please explain how that is capitalism. You have been quite adamant against CRT here calling it “neo-Marxism” (I generally agree). You are making the exact same arguments against capitalism that many socialists make. You are in effect arguing against a straw man.
[Mark_Smith]Since we are telling stories of the heroic nature of American capitalists, let me tell another. My mother worked for a regional grocery store chain for years. Due to the generosity of the founder, she was able to have a rather healthy retirement fund. That man’s children did not want to run the company. They wanted to party instead. So he sold out to Alpha Beta, a large chain. Within a few months there were riots in LA, the home base of Alpha Beta. A few stores were destroyed. The company legally raided the retirement fund of the newly acquired stores in KS. My mom was left with nothing.
All hail capitalism! Freedom at its best.
This crime has nothing to do w capitalism
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