How many times have you heard some young know-it-all decry, capitalism sucks, socialism is more fair, more humane! Socialism is about sharing and caring, right? One young lady explained her view of socialism thusly, “What if instead of living in a nice safe world where every ones basic needs are met, we live in a bad dangerous world where most people can barely feed themselves, but two people have like 500 yachts.” Dana Donnelly, Student and Idiot.
Let me reply to Dana with 5 words that sum up capitalism: Efficiency, innovation, opportunity, freedom and wealth. You don’t have these words in socialism for a good reason. Dana apparently missed the part of her history class where Capitalist America saved the world, 1939-1945. And she obviously missed the parts explaining who won the cold war and why. Now this explanation from Future Female Leaders.
In a free market society, the only way businesses can succeed is through supply and demand. Companies have the incentive to make their products more cost-effective than their competitors’ products. They also must produce a good for which there is a demand, otherwise the firm will go out of business. The result of this is that firms end up reducing inefficiencies in their workplace by cutting costs and producing goods at the most efficient level. This also supplies the public with a good they actually want.
We often hear that capitalism breeds innovation. This is because firms have incentives to work hard and produce new items for the market. Competition creates innovation because everyone wants to be the inventor of the newest good. With innovation comes a higher standard of living for the average person. A competitive climate boosts the economy and the well-being of the populace.
With capitalism, everyone has the opportunity to succeed. The environments that we are born into do not need to negatively affect our future. If a person wants to be a doctor, a business owner, or even the President of the United States, they can. The only thing stopping us from achieving greatness is ourselves. Through capitalist structures, we have equal opportunity for all. We all have the chance to succeed in society as long as we work hard and are willing to try new things.
Capitalism provides people with the freedom to do nearly everything they please. When it comes to institutions, food, and many other goods, there are so many options to choose from. Since capitalism causes innovation, it would make sense that there would be a wide range of goods to choose from in the marketplace. This allows individuals the freedom to buy what they want, go to the institutions they want, and live the lives they desire without government intervention.
There’s a reason many consider America to be the greatest country. The majority of our success can be attributed to having a free market society. Capitalism allows the economy to grow at an exponential rate. As businesses make more money due to competition and cutting down on inefficiencies, they are able to invest more in the overall well-being of the economy. Along with that, if individuals can have any profession they desire, they also have the opportunity to make as much money as they desire. All this contributes to the aggregate wealth of the economy, resulting in America being an economic powerhouse.
Capitalism is the economic structure we have to thank for America’s wealth and success. For some reason, this idea gets lost in the media and especially among millennials. A free market structure is the most efficient. It provides for the most economic freedom and aggregate wealth of all other economic philosophies. We all need to remember that. So today, enjoy capitalism and remember that it’s the only way you can read this article right now.
The more entitlements America creates, the more indebted, more bureaucratic, and less efficient we’ve become. Socialism did that to us, not capitalism. Frederick Bastiat said, It is impossible to introduce into society a greater change and a greater evil than this: the conversion of the law into an instrument of plunder. … But how is this legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime.
In the final analysis, socialism amounts to tyranny and compulsory servitude.