{"id":24524,"date":"2020-03-05T18:05:34","date_gmt":"2020-03-05T23:05:34","guid":{"rendered":"http:\/\/www.megalextoria.com\/wordpress\/?p=24524"},"modified":"2020-03-05T18:05:34","modified_gmt":"2020-03-05T23:05:34","slug":"the-anti-capitalists-are-still-wrong-about-history-and-much-more","status":"publish","type":"post","link":"http:\/\/www.megalextoria.com\/wordpress\/index.php\/2020\/03\/05\/the-anti-capitalists-are-still-wrong-about-history-and-much-more\/","title":{"rendered":"The Anti-Capitalists Are (Still) Wrong about History\u2014and Much More"},"content":{"rendered":"<p><a class=\"attachment wp-att-24525\" href=\"http:\/\/www.megalextoria.com\/wordpress\/?attachment_id=24525\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-24525\" src=\"http:\/\/www.megalextoria.com\/wordpress\/wp-content\/uploads\/2020\/03\/marx-brick-1024x768-1.jpg\" alt=\"\" width=\"802\" height=\"602\" \/><\/a><\/p>\n<blockquote><p>The [American] Dream is not dead, and we shouldn\u2019t let a populist scream convince us otherwise. Americans living today have every reason to be optimistic\u2014and grateful.<\/p>\n<p>\u2013 Michael Strain, American economist<\/p><\/blockquote>\n<p>Capitalism has become the <a class=\"steem-keychain-checked\" href=\"https:\/\/www.axios.com\/capitalism-opposition-2020-election-trump-democrats-5c7747b3-d581-49a9-8f8b-61c7b05211d3.html\" rel=\"nofollow\">preferred whipping boy <\/a>of those calling for more government involvement in markets. The statists love to begrudge it and the wealthy wokes love to downplay it. Whether it\u2019s income inequality or the growing power of big tech, \u201c<a class=\"steem-keychain-checked\" href=\"https:\/\/www.thebalance.com\/late-stage-capitalism-definition-why-it-s-trending-4172369\" rel=\"nofollow\">late capitalism<\/a>\u201d is a term employed by those who would like to eliminate or greatly reduce private ownership and usher in an era of redistribution.<\/p>\n<p>But is capitalism really in its final gasps? And if so, where are we headed?<\/p>\n<p>The notion of late capitalism has been around since Karl Marx began his assault on free enterprise in the 19th century, although the term was officially coined by German economist Werner Sombart in his 1902 book <em><a class=\"steem-keychain-checked\" href=\"https:\/\/archive.org\/details\/dermodernekapit01sombgoog\/page\/n5\/mode\/2up\" rel=\"nofollow\">Der Moderne Kapitalismus<\/a><\/em>. Marx believed that the proletariat would eventually revolt against the bourgeoisie due to the angst created by inequality and exploitation. For him, one of the most egregious injustices was wealth inequality. He believed private property was a major driver of inequality, effectively insulating the wealthy from giving workers their fair share.<\/p>\n<p>Sound familiar? Senator Sanders has <a class=\"steem-keychain-checked\" href=\"https:\/\/capx.co\/bernie-sanders-is-far-more-radical-than-corbyns-labour\/\" rel=\"nofollow\">an entire policy trove<\/a> of bad ideas built on the premise that wealthy Americans have exploited workers by weaponizing their possessions (property) for their own malignant greed.<\/p>\n<p>Those suggesting capitalism is in its final throes assume two things:<\/p>\n<ol>\n<li>Economic inequality equals injustice<\/li>\n<li>The existence of\u00a0 economic inequality means that capitalism must be replaced<\/li>\n<\/ol>\n<h2 id=\"link-0\">A Tale of Two Inequalities<\/h2>\n<p>Unemployment in the United States is currently at the lowest level it has been since the 1960s. Not only is the economy creating more jobs, but <a class=\"steem-keychain-checked\" href=\"https:\/\/macroblog.typepad.com\/macroblog\/2019\/12\/faster-wage-growth-for-the-lowest-paid-workers.html\" rel=\"nofollow\">wages are growing<\/a>. And <a class=\"steem-keychain-checked\" href=\"https:\/\/www.aei.org\/economics\/3-charts-showing-good-news-about-american-wage-growth\/\" rel=\"nofollow\">consider this<\/a>: \u201cwages for the bottom third of workers have risen at a 4.1 percent annual pace over the past two years versus 3.3 percent for the middle third and 3.6 percent for those at the top.\u201d<\/p>\n<p>Workers are in such demand, especially in industries like <a class=\"steem-keychain-checked\" href=\"https:\/\/www.cbsnews.com\/news\/these-are-the-industries-with-the-biggest-labor-shortages\/\" rel=\"nofollow\">healthcare and education<\/a>, that an increasing number of companies are offering incentive packages to defray the cost of moving to a new job. When we consider the income mobility of Americans, with 95 percent of those at the bottom 20 percent not being there in 15 years, it becomes clear that <a class=\"steem-keychain-checked\" href=\"https:\/\/www.aei.org\/carpe-diem\/some-amazing-findings-on-income-mobility-in-the-us-including-this-the-image-of-a-static-1-and-99-percent-is-false\/\" rel=\"nofollow\">wealth is transient<\/a> in a market economy, providing a pathway for many to pursue the American Dream.<\/p>\n<p>It\u2019s important to note that regulatory and tax reform play a role in reducing wealth inequality. To be sure, nothing will create absolute wealth parity in a free market (nor should it), but the effects of deregulation and tax reform are instructive. Economist <a class=\"steem-keychain-checked\" href=\"https:\/\/www.wsj.com\/articles\/the-american-dream-is-alive-and-well-11580486386\" rel=\"nofollow\">Michael Strain notes<\/a> that from the start of the Great Recession until 2016, \u201cinequality decreased by 7 percent\u201d after accounting for taxes and transfers.<\/p>\n<p>As the government\u2019s demands on business and personal wealth are reduced, employers feel more comfortable investing in expansion, leading to more jobs that in turn create a demand for additional labor. This makes workers more attractive to prospective employers, bolstering job seekers with a competitive environment that enables them to be choosier employees.<\/p>\n<p>Despite the free-market\u2019s ability to create a more level playing field, however, some types of inequality will continue to exist. Economist <a class=\"steem-keychain-checked\" href=\"https:\/\/world.wng.org\/2014\/12\/thomas_sowell_on_the_root_causes_of_income_inequality\" rel=\"nofollow\">Thomas Sowell notes<\/a> that there are many contributors to inequality, saying, \u201cthere was never a reason to expect equality. [There are so] many different complicating factors, cultures matter, demographics matter, regions matter.\u201d<\/p>\n<p>For example, the average life expectancy of a man that lives in the mountains is a decade less than one that lives in the Virginia suburbs. Inequality is even evidenced in seemingly superficial matters, such as physical attractiveness, athletic aptitude, and musical ability. Not everyone can play like Patrick Mahomes or sing like Adele.<\/p>\n<h2 id=\"link-1\">The Justice of Capitalism<\/h2>\n<p>There are few things more professionally distressing than seeing your hard work and earnest efforts thwarted by a system designed to quash competition. Unfortunately, this is the type of approach many protectionists on both the left and right take when it comes to economic policy. Through onerous regulation, occupational licensing restrictions, minimum wage laws, price controls, tariffs, and more, it can feel like the deck is stacked against you.<\/p>\n<p>By contrast, free enterprise is liberating and creates opportunity. The spread of capitalism and the promotion of free markets has led to a <a class=\"steem-keychain-checked\" href=\"https:\/\/fee.org\/articles\/extreme-poverty-rates-plummet-under-capitalism\/\" rel=\"nofollow\" data-toggle=\"popover\">substantial decline<\/a> in extreme poverty. In the 1980s, approximately 40 percent of the world\u2019s population lived in extreme poverty. Today, that <a class=\"steem-keychain-checked\" href=\"https:\/\/www.visualcapitalist.com\/decline-extreme-poverty-perspective\/\" rel=\"nofollow\">figure is 8.6 percent<\/a>.<\/p>\n<p>Even authoritarian regimes, like China, recognize the importance of limiting government intrusion in markets if they hope to be competitive in an increasingly globalized economy.<\/p>\n<p>Capitalism has proven to be the best vehicle for economic justice for the marginalized and impoverished. Why would anyone want to deprive the poor of the mobility free enterprise affords?<\/p>\n<h2 id=\"link-2\">Capitalism Today, Capitalism Tomorrow, Capitalism Forever?<\/h2>\n<p>If we look to public trust as an indication of capitalism\u2019s viability, look no further than business, which holds \u201ca massive 54-point edge over government as an institution that is good at what it does,\u201d according to the <a class=\"steem-keychain-checked\" href=\"https:\/\/www.edelman.com\/trustbarometer\" rel=\"nofollow\">Edelman Trust Barometer<\/a>. It\u2019s also worth noting that US economic confidence <a class=\"steem-keychain-checked\" href=\"https:\/\/news.gallup.com\/poll\/283940\/economic-confidence-highest-point-2000.aspx\" rel=\"nofollow\">is the highest<\/a> it has been in nearly 20 years.<\/p>\n<p>No, capitalism doesn\u2019t appear to be going anywhere anytime soon. Instead of statists thumbing their noses at capitalism\u2013oftentimes suggesting governments intervene\u2013they\u2019d be wise to exhibit a little intellectual humility and take a lesson from the efficiency and dynamism of the private sector.<\/p>\n<p>The data is indisputable. Capitalism has been the primary driver of economic flourishing and innovation for nearly three hundred years, catapulting individuals, societies, and nations into <a class=\"steem-keychain-checked\" href=\"https:\/\/fee.org\/articles\/the-growth-of-the-world-s-middle-class-may-be-the-greatest-story-of-our-age\/\" rel=\"nofollow\" data-toggle=\"popover\">levels of prosperity<\/a> that were previously unfathomable. Capitalism respects the agency of people and communities, recognizing that they should be able to freely associate and trade as they see fit. Free market capitalism honors the natural right to private property.<\/p>\n<p>But, even beyond these principles and big ideas, the practical matter is that so long as humans value prosperity, opportunity and innovation, capitalism won\u2019t fade away. Free enterprise offers technological innovation that make products smarter, lighter, cheaper, and use less material.<\/p>\n<p>Capitalism creates, <a class=\"steem-keychain-checked\" href=\"https:\/\/www.bloomberg.com\/graphics\/2019-venezuela-key-events\/\" rel=\"nofollow\">socialism destroys<\/a>.<\/p>\n<p>Moving from free market capitalism toward a command economy is neither moral nor responsible. So long as free people choose action over apathy and liberty over serfdom, capitalism will continue to offer individuals the opportunity to pursue the American Dream.<\/p>\n<div>\n<\/div>\n<div>\n<h5><a class=\"steem-keychain-checked\" href=\"http:\/\/www.fee.org\/people\/doug-mccullough\/\"><br \/>\nDoug McCullough<br \/>\n<\/a><\/h5>\n<p>Doug McCullough is a corporate attorney at the Texas law firm, McCullough Sudan, and is a director of the Lone Star Policy Institute. Doug is a co-host of The Urbane Cowboys, a podcast on policy, society, and innovation. He is a National Review Institute Regional Fellow and Better Cities Project Fellow. He is a regular contributor to Foundation for Economic Education, and has been published in Entrepreneur, The Hill, Washington Examiner, Arc Digital, Houston Chronicle, and San Antonio Express.<\/p>\n<\/div>\n<p style=\"font-style: italic;\">This article was originally published on FEE.org. Read the <a href=\"https:\/\/www.fee.org\/articles\/the-anti-capitalists-are-still-wrong-about-history-and-much-more\/\">original article<\/a>.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.fee.org\/counter\/187673\" alt=\"\" width=\"1\" height=\"1\" \/><script src=\"https:\/\/fee.org\/Scripts\/fee-repub.js\" async=\"async\"><\/script>\n","protected":false},"excerpt":{"rendered":"<p>The [American] Dream is not dead, and we shouldn\u2019t let a populist scream convince us otherwise. Americans living today have every reason to be optimistic\u2014and grateful. \u2013 Michael Strain, American economist Capitalism has become the preferred whipping boy of those calling for more government involvement in markets. The statists love to begrudge it and the wealthy wokes love to downplay it. Whether it\u2019s income inequality or the growing power of big tech, \u201clate capitalism\u201d is a term employed by those who would like to eliminate or greatly reduce private ownership and usher in an era of redistribution. But is capitalism really in its final gasps? And if so, where are we headed? The notion of late capitalism has been around since Karl Marx began his assault on free enterprise in the 19th century, although the term was officially coined by German economist Werner Sombart in his 1902 book Der Moderne Kapitalismus. Marx believed that the proletariat would eventually revolt against the bourgeoisie due to the angst created by inequality and exploitation. For him, one of the most egregious injustices was wealth inequality. He believed private property was a major driver of inequality, effectively insulating the wealthy from giving workers their [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[376,3619,3317,3617,2253],"class_list":["post-24524","post","type-post","status-publish","format-standard","hentry","category-news-and-politics","tag-capitalism","tag-marx","tag-news","tag-palnet","tag-politics"],"_links":{"self":[{"href":"http:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/24524","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/comments?post=24524"}],"version-history":[{"count":0,"href":"http:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/24524\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/media?parent=24524"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/categories?post=24524"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/tags?post=24524"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}