Is Capitalism Really the Answer?

Since I first began thinking about such subjects, I have always believed that Capitalism was the way to go.  As we all know, Capitalism is a system whereby private individuals own property and the means of production.  Accordingly, private business owners hire their workers and keep the profits (or losses) they earn from the entities they own.  Socialism and its twin sister, Communism, on the other hand, are systems wherein the role of government is far more substantial and, in many cases, oppressive.  From regulation to outright control over property, workers, wages and outcomes.  Often, the government flat out owns and runs the country.  In all ways that matter (to me at least) - freedom, opportunity, justice, prosperity, Capitalism is far superior to its nefarious alternative, Socialism. 

Concomitant with capitalism is the widely held belief that free and open markets work much better for the majority than markets where government intervenes.  The idea behind free markets is just that – freedom, wherein participants trade goods, services and capital as they wish – without government interference.  If a certain commodity or service is desired at a price offered, it will be consumed, thereby satisfying both provider and consumer.  If not, both provider and consumer will adjust or go elsewhere to trade. 

Adam Smith known as the “Father of Capitalism” for his works, The Theory of Moral Sentiments (1759) and An Inquiry into the Nature and Causes of the Wealth of Nations (1776), articulated this theory over three centuries ago.  Adversaries Marx, Lenin and Mao have since vehemently disagreed.

I have never really felt compelled to question the superiority of Capitalism over its alternatives.  A comparison of living standards across the globe reaffirmed that to be unnecessary.  Until now.  Even today, it is abundantly clear that we, in this US of A so despised by the Woke Left, are much better off than the Venezuela’s and Cuba’s, Russia’s and Communist China’s of this world.  If not, why do millions risk life and limb to enter illegally every year?

Yet I wonder if the pure application of free market and Capitalist fundamentals is working in these times as well as Adam Smith and Milton Freedman envisioned?

Consider…

• Our massive trade imbalance.  The idea of trade is some form of relative equivalency achieved under “free” market conditions.  The US “makes” things that others want, and we trade those for other things, which we want, that others make.  And, in theory, over time, it all evens out more or less.  But that is not happening.  We buy $400 billion of goods and services from China MORE than they buy from us.  Why – two main reasons.  Their wages are much lower and a favorable exchange rate.  Ironically, China lends us a lot of the money we use to buy their stuff!  Overall, our trade deficit approaches $1 trillion.

• We no longer make much of anything.  It’s called the hollowing out of America.  Manufacturing as a per cent of GDP has fallen by 50% in the last 20 years.  Not surprisingly the middle class has shrunk by 25%. Globalization, for sure, is partially to blame.  Every sector of industry sent jobs offshore to countries that could make things cheaper.  Tax policies caused US companies to move headquarters overseas.  Our declining education system has contributed.  Today all we “make” are technology and financial services.  Neither of which provides enough decent quality jobs to sustain a healthy middle class.  Go visit Detroit or Youngstown or Camden if you don’t believe.  Whole swaths of Michigan, Ohio and Indiana.

• The term “free” market no longer applies.  How can we trade freely with Communist China?  Where industries are owned, controlled and massively subsidized by the Communist party?  Where wages are held oppressively low?  Yet, we gladly buy their low cost tee shirts and smart phones?  We faced the same thing in the 80s when the Japanese carmakers started flooding our markets.  It was only when Reagan insisted that a certain % of every car be made in America that things got sorted out.  I read that today 80% of Camrys are made in US.  More than many cars from US manufacturers.  Crazy, eh?  Stupid?  Yeah.

• A US debt of nearly $32T, much of which is owed to our mortal enemy, Communist China.  How can that be a stable, reassuring proposition?

• Oh yeah, another scary thought.  How many mission critical things do we have no control over or ability to make?  Pharmaceuticals and rare minerals essential for security and the green revolution and sophisticated chips that are essential…well for pretty much everything?  Guess who controls most of these?

So, bottom line, I’m wondering if Capitalism doesn’t need a little tweak or maybe a really big one.  I’m wondering if we haven’t gone too far with this free market thing.  Or, please don’t strike me dead, Lord, free everything? 

Mightn’t we be better off if:

1. We take education out of the hands of left-wing politicians and corrupt, lazy teacher’s unions.  Open alternatives (read – charter schools) everywhere, then give parents the money we waste on public schools, so they can send their kids where they think best.  Where they could learn readin, ‘ritin and ‘rithmetic, instead of pondering their sexuality at age 6? (Update: 5/22/23 – DEM Governor of NC declares state of emergency to block education reform bill allowing school choice, which was about to pass state legislature.  Meanwhile his kids go to Private Schools.  Where was he when NC was in bottom third of schools reopening after Covid?”)

2. We reclaim self-sufficiency of energy, key materials and technologies needed to remain secure?  Make as many of them as we can here in the good ole USA.  Block others, especially China, from controlling supply chains.  For those we can’t make, make sure our own supply chain is rock solid.  If this means trade embargoes and subsidies for Made in the USA, let’s dance!

3. We start making stuff again that others want besides “services”.  Subsidize some key industries so we can take back some jobs.

4. We shut the borders, whatever it takes.  Stop the insane drain of resources on illegals.  Law enforcement, courts, prisons, healthcare, fentanyl etc. etc. Stop allowing illegalds from polluting elections.

5. We stop fighting a war in the Ukraine and turn our energy back on, so the Euros aren’t held hostage by that madman Putin.  A mess, which, incidentally, Germany, France etc. brought on themselves by shutting down nuclear and climbing into bed with the Russkies.  Wonder how they like “green energy” these days.

6. And here’s one of the best, how about we quit demanding people who never owned a single slave pay “reparations” to others who never worked a single day as a slave?

Okay, okay, I’m off message.  Sorry. 

My real point is maybe it’s time to reengineer the concepts of Capitalism and Free Market fundamentals to match the situation we’re in. Mightn’t some rational, well intentioned government intervention be a good thing to get us back on track?  To restore control over our country and our destiny.  To protect our principles and our sovereignty?  A little protectionism if you will.  Lord know the Chi-coms and Russkies don’t mind a little government control.

I guess I answered my own question.  Where in heaven’s name are we going to get a rational, well-intentioned, courageous government with a firm commitment to MAGA?