“Capitalism is Misunderstood”

Thoughts on a Free Market Economy…
“Capitalism is Misunderstood”
By Phyllis Hunsinger
March 1, 2020

The results of a Fox News poll, released on December 17, 2019, showed that nearly one-third of registered voters (31%) hold a favorable outlook on socialism. This percentage had actually grown since the previous Fox News poll from February 2019.

Why would capitalism lose ground to socialism in an affluent country?

Capitalism is defined as an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state, as in socialism. Capitalism is often referred to as the most moral and just system of economics because of the relationship between private property and voluntary arrangements of the individual. The most efficient and effective means of providing people the goods and services they want is through private enterprise
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Yet the nay-sayers believe capitalism is unfair, the cause of many problems on earth. These anti-capitalist individuals blame the problems on capitalism instead of an adulterated form that is widely understood to be “crony capitalism.” Crony capitalism is defined as an economic system characterized by close, mutually advantageous relationships between business leaders and government officials. When the capitalistic system is manipulated by those in political power to serve special interests to acquire wealth without the consequences of market competition, corporations are given an unfair advantage and the consumer is the biggest loser of all. Crony capitalism may be demonstrated in many ways including government grants, favored status in acquiring permits, specific tax breaks, subsidies, and policies of government protection. Once this arrangement is set, the consumers do not benefit from rapid innovation or market forces that drive down prices, because corporations linked to government funding have no incentive to be efficient. Their survival is not based on innovation or competition. Remember Solyndra?

Despite all the evidence to support that capitalism is the most moral economic system thus far designed, capitalism still does not fare in the polls as well as would be expected. One of the reasons for this is the mistaken comparison of capitalism with some utopian ideal. The fact remains that any other system practiced besides capitalism has been demonstrated to be disastrous for the citizens and the country as a whole. Glaring examples of failed economic systems are the U.S.S.R, Venezuela, Cuba, China, and North Korea to name a few. When the government is directing the economy, as in central planning countries, or partnering with corporations, as in crony capitalism, the economy becomes stifled and scarcity and poverty will exist to a greater degree.

Freedom is what capitalism needs to be responsive to the wants and needs of the citizens. With every rule, regulation, fee, and tax placed on businesses, there is a loss of freedom. Consumers purchase goods and services they value. The freer the markets, the more consumers benefit from innovation, choice, access, competition, and lower prices. Think televisions, computers, cell phones, and automobiles, all brought to citizens by capitalism.

Polls revealing a negative view of capitalism may simply be revealing a lack of knowledge about capitalism and free markets.
https://www.free-dom.co.us, Phyllis Hunsinger © 2020 All Rights Reserved

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