What is Capitalism?

Capitalism - it's why we have "SmartPhones"
Capitalism – it’s why we have “SmartPhones”

In 2008 Michelle Obama said “Someone is going to have to give up a piece of their pie so that someone else can have more.”  Really?  If you believe that then you’re either a moron (likely) or a Communist (also probably likely.)

Leftist redistributionist philosophy is total crap! The idea that as the rich get richer the poor must by default get poorer is total crap.

Wealth is CREATED through hard work. “Level playing field”, “social justice” and “income redistribution” are all buzzwords for Communism.

There’s not a finite sum of money in the world such that when someone gets richer someone else gets poorer. That’s Communist bullshit!

20 people start a farm, raise corn which did not exist before, and they sell it. Some other people exchange money for the corn, but they GET CORN which did not exist before!  They eat the corn and are happy for that, and get to live a little longer.  Nobody gets poorer!

12,000 people lead by a genius-entrepreneur design a revolutionary new electronic device, acquire $100 worth of raw materials, run those through a manufacturing process that adds another $100 per unit, turn around and pay $100 worth of labor costs and other overhead per unit… and then sell the ‘cool new thing’ for $600 – which the public shells out gladly because they MUST HAVE THAT ‘COOL NEW THING.’  In fact they actually camp out on the sidewalk the night before to make sure they get the ‘cool new thing’ before anybody else.  $300 goes in and $600 comes out.  Where no ‘cool new device’ existed before, now there is one.  $100 of raw materials turn into $300 profit.  Buyers provide that $300 profit but they each get a ‘cool new thing!’  That’s capitalism!

Any questions?

Wealth is CREATED which is why we now have so very much more than we did 100 or 1,000 years ago.  (Incidentally war and terrorist attacks destroy wealth, although the recovery from those acts can again create wealth.)

Any other line of reasoning – “your piece of pie for mine”, “only so much to go around”, “we need to level the playing field”, and “income must be fairly redistributed” are all buzzwords for Communism.

This is NOT a difficult concept unless your mind has been filled with bullshit by liberal teachers, liberal late night hosts and liberal politicians!

The problem is that in a capitalist society people who are stupid, lazy, addicted to drugs or alcohol, and drop out of school simply will not succeed.  Under normal circumstances these people would have to turn to crime in order to survive.  But in America today we have constructed a huge, complicated, expensive system of welfare safety nets that provide for these non-productive citizens.  In America today anyone who wants may simply stop working, give up and the State will provide for all of their needs.  In some states welfare recipients may even use their allotments to buy Marijuana! (http://insider.foxnews.com/2014/09/13/welfare-weed-ebt-recipients-can-use-benefit-cards-buy-marijuana)

In 2013 the Cato Institute – a DC Libertarian think tank – published a white paper titled “The Work versus Welfare Trade-Off: 2013” (http://www.cato.org/publications/white-paper/work-versus-welfare-trade.)  Turns out that welfare pays more than minimum-wage work in 35 states! (http://www.forbes.com/sites/theapothecary/2013/09/02/on-labor-day-2013-welfare-pays-more-than-minimum-wage-work-in-35-states/#347e9117279d)

 

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