Tuesday, April 3, 2007

Confusion Among the Believers

I think many folks are getting confused about capitalism because they are incapable of distinguishing between capitalism and corporatism. Capitalism is a natural phenomenon; it describes why the farmer gets up and sows seed corn on his land (capital). It also describes billions of other actions that go on everyday.

Corporations are children of the state. The state not only gave them life, it also considers them to be persons before the law. They don't just exist to make profits. Governments give stuff to corporations. Corporate culture is inherently government centric; if a corporation does try to stay away from Washington D.C. it will find itself in trouble (like Microsoft).

Tired of gigantic corporate stores? Does Wal-Mart have you down? Well it is inevitable that businesses will grow in order to take advantage of economies of scale, but part of that equation is the outrageous cost of regulation. Companies are bigger because of government. The larger companies can afford tons of lawyers, lobbyists, and federal employees who work directly out of company offices. The Mom and Pops can't afford any of that. That's why Wal-Mart happily gets on board with the minimum wage hike; it hurts the competition more than it hurts them.

We've heard the social justice stuff for years, and now comes the much heralded social responsibility. Starbucks pays farmers too much for coffee, alleging "fair" trade, but in reality artificially creating more supply. There are a variety of "green" innovations, and in some cases, such branding actually helps the corporations sell more product. People do, after all, like to think they are helping. Unfortunately, most of this stuff is dubious at best. We humans tend to be arrogant and overreach, thinking that surely we know what needs to be done.

Of course, the left seeks to collectivize our charity too, but we only have to look to Europe to see this is a failure. Those in the U.S. consistently give more than socialist Europe does. We think it is our responsibility, while the Europeans feel it is the government's responsibility.
After all, they pay an awful lot to those governments.

I would like to see years of unprofitable argument stop. We already know that capitalism is the model that works; both the Communists and the Socialists have failed with planned economies. And yet, so many people continue to squirm about, alleging this or that evil is the responsibility of capitalism. Stop! It simply cannot be! Capitalism has no central planner, no C.E.O, no P.R. people; it just exists! Evil steals, murders, or otherwise coerces people to behave in ways they wouldn't normally; which is just what governments and their ambitious little brothers, the corporations, do. How can more coercive action possibly be the answer?

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