More on Capitalism

The father of capitalism, Adam Smith, envisioned freedom and self interest as the forces that would lead to what is best for Society. In my view these values are still most relevant to the the story of capitalism. The masses must have access to private property and capital and be supported by institutions which encourage economic activity in an essentially unfettered environment. Smith, however, envisioned a market structure in which no one company could dictate the market tempo in terms of prices and quantities produced. This is not the reality. Because of this, pure free maket economics does not exist, rather experience gained through painful periods in time have indicated that the central government might step in to institute adjustments when markets are out of control. The real battleground today is between liberals who favor large government stepping all over free enterprise and the conservatives who believe that no matter how rough the economy is that the central government should keep its hands off the economy, that given time it will correct itself. In other words no one is ” too big to fail”. To cut to the chase, capitalism and its institutions are every bit required to unleash the power of individual initiative—the innovative and creative energy of the masses must be guaranteed by the institutions in the nation. The present administration in America tilts far too much toward limiting rewards for individual initiative, and is tone deaf to the need to instill incentives in the form of personal rewards for achievement and significant contributions to society. A society that limits rewards for invididual success though punitive taxation, one built on political class warfare, will underachieve, and suffocate the benefits inherent in the institution of capitalism.

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