In the U.S., Selectively Applied Capitalism
|
|
http://www.realclearmarkets.com/articles/2008/07/in_the_us_selectively_applied.html
Type of Content: Article It has become fashionable these days to look at bank failures and the mortgage crisis in the U.S., and say that capitalism has failed and that it is time to try "something else". Well, surprise! Something HAS failed in the U.S., but it sure as heck isn't capitalism. Other countries that have freed their economies are doing better now than they ever have in the past. Unfortunately, we have been going in the opposite direction-- and look at the results. Read »
Created 11 weeks 5 days ago
Made popular 11 weeks 5 days ago |
- Flag as offensive
- Login or register to post comments
- 242 reads
"Nothing illustrates how difficult it is to end a government initiative, even when its raison d’etre has long passed, than the persistence of Fannie and Freddie. "
This statement is absolutely spot on.
I also found it quite interesting that the author talks about former Soviet countries NOT adopting U.S. policies when it comes to corporate taxation, income taxation, double taxation, etc...
So i guess my question is: If there is a better method (of taxation that is) what is it specifically and how can we get there?
"The U.S. has become a purveyor of what might best be described as selectively applied capitalism, in which we urge free markets and growth policies on the rest of the world but increasingly do not practice what we preach. " Umm...this is a surprise? Government not practicing what they preach: Patriot Act? No Child Left Behind? "We are Winning the War on Drugs!" Almost EVERYTHING the government does or says is functionally hypocrtical in one way or another - - why should our economic policies be any different? We tell the world one thing, and we do whatever the hell we want. This is why American tourists are wearing Canadien flags on their backpacks when travelling in Europe, Australia, and elsewhere. (and not just Lisa Simpson)
I would like America to be a shining beacon of hope and freedom for the world. Not the butt of all its jokes.
"Capitalism" has become, in the minds of most people, merely a way to finance Socialism. How twisted is that? To progressives capitalism is a necessary evil, because they know that it works and that we need it in order to survive, but its very success contradicts everything they believe in, so they hate it anyway.
Will people ever understand that there is no freedom without capitalism? Or will freedom end up becoming a dirty word as well?
promoting "freedom" at the barrel of a gun it wouldn't surprise me if people associated freedom with death, destruction and chaos.
Living in Chicago, we have our fair share of educated democrats/socialists/whatever. My roommate is a college educated Obamabot for example. (despite all my Ron Paul educating; he isn't the brightest bulb on the tree) - and he always points out that a lot of our overseas adventures - not so much actual wars - but CIA orchestrated coups and what not - were primarily done with a goal towards establishing a foot hold for major u.s. corporations in whatever third world country was presently at issue. Whether in South America or somewhere in Asia.
If people see "freedom" is this light, I can understand why they think that capitalism is "evil" and only comes with exploitation. Education is obviously the key, but at the same time, we have done some pretty sick shit (El Salvador comes to mind). How do we counter US trained death squads during the Reagan years? What does one say? I try to make the point that that type of situation is not what we mean when say capitalism promotes freedom and that likely, special interests and crooked politicians were likely to blame...but it has happened more than once and I find myself frustrated as well. I assume capitalism to be a non-coercive environment, where people are free to contract with one another without coercion and without threats. It seems to fall on deaf ears in my neck of the woods. Any thoughts? My economic knowledge is scant at best so I am trying to learn but I am having a hard time articulating thoughts into words. (sorry if this going off topic)
Thanks for responding and posting this link.
>>"[Kelvin's roommate] points out that a lot of our overseas adventures - not so much actual wars - but CIA orchestrated coups and what not - were primarily done with a goal towards establishing a foot hold for major u.s. corporations in whatever third world country was presently at issue. Whether in South America or somewhere in Asia."
What your roommate describes is the opposite of small government and a free market economy. In a libertarian system corporations would be incapable of extracting favors from the government, because the government would have no favors to grant. Our government would be taken out of the business of using our military power (or any other use of tax dollars) to pave the way for companies to set up shop in other countries, because government power would be limited strictly to providing police and courts to enforce contracts and protect American citizens and their property and to defend America in the event of attack against us. Everything else would be done privately, with the consent of all the parties involved.
If a company wanted to try their luck doing business in an unstable country, they could go ahead and take the risk, but our government could not intervene if a dictator suddenly decided to seize their assets and kick them out.
Take another look at globalization, though. In most cases foreign investment and companies setting up shop in third world countries have lead to great improvements in standards of living for the poorest people in the world. If only the many socialists in Central and South American countries had understood this, they would be well on their way to economic prosperity by now.
And I think your response ties in well with my general point to my roommate - - that his perceived version of "capitalism" and also "conservatism" for that matter is warped by the fact that many people claiming to be both are in reality neither capitalist nor conservative - which brings us right back to the point from the article about present day America and the " do as i say not as i do" aspect of American capitalism as it exists right now.
I noticed the hostility toward Ron Paul JUST BECAUSE he was running on the republican ticket from Chicagoans because their concept of republicans is George W. Bush or Rick Santorum or Tom Delay or Denny Hastert or Mike Huckabee or whatever... I guess we have to educate everybody - not only the people who are anti-republican version 2008 (almost all dems) but also the republicans who are okay with the aforementioned type of people. Thanks again for responding. I realize my little personal debate with my roommate is trivial - - but I see it as an example of a larger disconnect between the freedom message, the Republican party itself (with McCain as its standard bearer) and the educated dems who might otherwise be sympathetic to what we have to say and offer. For example, the strangebedfellows thing as regards civil liberties. Tying that into economic liberty as a necessary prerequisite for ensuring civil liberties long term for large numbers of people seems to be the major hurdle. There is no trust - as you may say- the concepts/words themselves have become like dirty words. Not to be uttered in polite company and if heard; ridiculed. I guess nobody ever said this was going to be easy...
Your point about discussions with people on the left who distrust capitalism was a very important one to make. In order to defend freedom, we need to be able to address pervasive misconceptions about capitalism. Let's all take these discussions about liberty from the BTM forums out into our homes, our schools, our workplaces, our parents' living room, and the parties we go to. What could be more important?
+Let's all take these discussions about liberty from the BTM forums out into our homes, our schools, our workplaces, our parents' living room, and the parties we go to. What could be more important?+
When anti-capitalist indoctrination outpaces the spread of the liberty message, mass messaging is even more important than word of mouth. Hence the importance of websites like this, less so for these discussions than the larger broadcasting mission that is planned.
In my part of New England, you're either a Red Sox or a Yankee fan from a young age, just as you are likely to be anti-capitalism to the core. Switching teams is very unusual and ALWAYS the result of something very personal (i.e. you marry a Yankee fan or your cousin gets a job at Fenway). Though word of mouth is the most personal form of marketing a message and something that should always be practiced, it will not do enough to elevate the liberty agenda.
Just before I logged in today an email from my (never see him) cousin Tom came. He looked at the 3 short video links I sent he and others a couple of weeks back, and wrote back saying they coalesced his "general belief that government should be schools/roads/police/fire" and that he would send them along to his sizable list of friends. He was fired up, largely I believe because the liberty message, in ringing true, brought belonging to his beliefs, an important step in accepting new philosophies. For this reason, I will continue to post them...
http://youtube.com/watch?v=ywoRULi6TFs
http://youtube.com/watch?v=Iiwk_XPDlTY
http://youtube.com/watch?v=z_HhC_QS7V8
and posit that mass messaging is more important, at this point in time, than word of mouth.
No I kid, just trolling to get reads on this story...Unrest is growing in this country. Many people feel a vague sense of disquiet. But most don't really know what the source of the disquiet is. War, inflation, moronic leaders, loss of civil liberties, loss of the value of the dollar, oil costs, etc., all contribute to the general populace's disquiet.
But so many people, except for a handful of us FREAKS, do not have the desire to investigate the underpinnings of what is going on around us. Tragically, 7.5 years of Bush have obliterated what real conservatism is and popularized progressive thought in the mainstream (not to mention destroyed the republican party). Progressive ideology has also been pushed by both public schools/higher education (I use that term loosely) and the media. A dangerous union exists between a willing apathy and little self directed intellectual investigation that is pushing the US to the precipice of all out Socialism.
So Claire, you are spot on when you say:
"It has become fashionable these days to look at bank failures and the mortgage crisis in the U.S., and say that capitalism has failed and that it is time to try "something else"."
Later,
Yo
Our time is NOW.
Conservatives have abandoned the ideals they once stood for. Who remains now to defend small government, capitalism and freedom?
But I grow tired, its as if I (we) see and everyone else is blind, what hurts is my "conservative" friends and family don't take us seriously. Often if I dare bring up how Dr. Paul was right, nearly prophetic IMHO, I get laughed at. Ouch.
I am going on vacation, need break...
Yo,
Our time is NOW.
LOL! That may be a stretch on this end, but I am glad to see someone writing about this. I just tried to find the NY Times article he cites, but couldn't find it quickly. It certainly is interesting that this may be the second time in 2 weeks that the Times has allowed an article criticizing socialism to be published. Are they having a change of heart? LOL!
Anyway, thank you for posting this - this is the most important message to get out right now. When we're dealing with calamity next year, we will either demand government solve it or finally tell government to get out of the way. The quality of life for several generations could hang in the balance.
My only criticism of this author is that he uses the term "selective capitalism." There can be no such thing. If there is interference in the marketplace at all, it is not capitalism. I also heard another author refer to "crony capitalism." The baseline requirement for capitalism is that the capitalist builds his productive structure by purchasing raw materials and services via VOLUNTARY exchange. This makes the price mechanism work, including in the labor market. When tax money is injected, for anyone's benefit, it destroys the model and you cannot call it capitalism anymore - not even "selective" or "crony" capitalism. It is harmful to the argument when it is conceeded that the failure is due even to "some kind of capitalism," when in fact it is due to capitalism's antithesis.
Tom Mullen
www.tommullen.net
www.myspace.com/skepticsongs
"Question with boldness even the existence of a god; because if there be one he must approve of the homage of reason more than that of blindfolded fear."
-Thomas Jefferson
Thanks for your comment, Tom. I hope this one makes it onto the BTM list of articles to read.
I agree with your point about the definition of capitalism, which is why I said in my intro that what we have in the U.S. is, in fact, not capitalism at all.