Many opponents of the current economic system of the United Sates are under the impression that it is laissez-faire capitalism; this is far from the truth. It is not truly capitalism and has not been for many decades. In fact, even in its purest form to date, the markets never reached true freedom in the United States. Over-regulation by bureaucrats who do not know anything about sustaining a profitable business has created a system that rewards failure and punishes success; the exact opposite of capitalism. The government is propping up failing companies and creating an economic atmosphere of higher taxes and inflation. The central planning of the Federal Reserve, Congress and the Treasury Department keep the market from being truly free in any reasonable sense that Adam Smith, the author of The Wealth of Nations and founder of Capitalism, meant it to be. We are witnessing the folly of the world attempting to pass itself off as benevolent wisdom.
Competition is the key to Capitalism. Once you destroy the competitive aspects of the markets, they are no longer free. This competition is often described as greed, but the Capitalist system is not based on swindling; if customers are not treated well or products are shoddy, consumers will no longer trust the swindling company. Free markets foster incentives for people to behave honestly, thereby enjoying big profits from satisfied customers. If a company isn’t conducting good business it will fail. When the Government decides that certain companies are too big to fail or should win regardless of their failures, the competition dies and so do excellence and striving for success. Continue reading “Capitalism, the Straw Man”