Just like in the animal world, many startups die when they are very young, but those that survive and grow quickly tend to grow exponentially, which leads to higher profitability and productivity. I’m also the proud father of seven children. It allows you to strive to be better and create value for others to enjoy. Compared that to forced government work on threat of prison, I think a free market is a nice thing. – Henry David Thoreau. We need a guy like Ron Paul. However, capital of value today is intellectual capital. If you cannot deal with reality, then it's your fault, not capitalism… Socialism will eventually be more efficient because it encourages innovation and education, while capitalism keeps the poor weak and forced to work to make enough money. I have an organic vegetable garden, go fishing daily. Capitalism is a system whose entire purpose is to benefit all citizens’ standard of living in a free market with property rights at its core. Yet the megabanks have grown larger without growing more efficient. Without competition, you end up with bloated monopolies. Capitalism is a system in which bad people can do the least harm and good people have the freedom to do good works. ‘I would rather sit on a punkin all my own then a crowded cushion of velvet’. Automated factories to produce automated good and cars. It will be more slow growth. The reason why these corporate ceo’s can get away with underpaying employees is because minimum wage is only 7.50 an hour. Existing laws were not even written with digital platforms in mind. If we all used our heads we could come up with a better model upon which to base our society. Central characteristics of capitalism include capital accumulation, competitive markets, a price system, private property and the recognition of property rights, voluntary exchange and wage labor. Is capitalism bad? Although, as they say, it has “Chinese characteristics.”. We have done well so far from capitalism. I am an American. You stated “Americans pay the same level of taxes if not more than the European social states but do not get the benefit”. However, I am still against deficit spending. It allows you to express yourself and give you the freedom to choose. Five banks control about half of the nation’s banking assets. In fact, as… Amazon is crushing retailers and faces conflicts of interest as both the dominant e-commerce seller and the leading online platform for third-party sellers. There is absolutely nothing wrong with the minimum wage. Bush accelerated spending and Obama followed through. I lived in Eastern Europe a good part of my life and I can tell you the poor in the USA are the super rich in other countries. Guns or Butter Here’s Tepper again: Ever since the time of Thomas Jefferson, Americans have idealized the yeoman farmer and the small business. We’ve already described the airline industry. I know, I lived around them most of my life growing up in preppy Connecticut. A few hundred years ago, the majority of people stood below the poverty line. http://www.economist.com/blogs/graphicdetail/2012/10/focus-4, You also said “If the USA had real capitalism the average worker would get paid a lot more than today as excess government regulation and hidden taxes reduce margins.”. Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Americans like to say how upset the Europeans are with their social system. First, I need to make one thing clear, some states (not mine, thankfully) have an income tax and California’s is something like 12%. Whatever it takes and unfortunately the rich own the media which constantly sells under the veil of deception that greed is good. It’s a cartel It could never exist in a free market and now they are going to make mandatory. That’s a problem because we need those small, local businesses. I hate capitalism. We have a large industrial military complex and social state that does not directly benefit the average guy. Relative wealth generation will not only be in the USA as Asia is in the game and people there can do our jobs for less. Each week, nearly a million readers around the world receive my Thoughts From the Frontline free investment newsletter. Do you not think immoral economic abuse of power did not take place under communism or socialism? Do you own a cell phone or car? This means whether it is setting up a yoga school or writing a book or being an electrician like Lech Wałesa. High tech to biotech entrepreneurs are looking for new ways to serve humanity even if the profit motive is behind it. Not only the monopolization of entire industries but of art and technology. Why? It is quite bizarre to use social systems that were invented a few centuries ago, particularly when new technologies and industrial tools have … Obama and the GOP are talking about stopping the rate of increase but not decrease. Therefore, the idea that Obama does not spend or spends relatively less than other presidents against some GDP scale or percentage increase is not as much of an interest to me as there is not balanced budget amendment or decrease in spending. If you can not see this I can not explain it to you. A capitalist is creative and risk-taking and wants to add value to society. Firstly, it was not clear which form of capitalism was being described, so I would like to begin this list by defining the free market, which is capitalism … Capitalists have a bad moral reputation. Everyone thinks the only alternative to Capitalism is Communism. This combined with taxes will drag the USA. But, there has always been and there always will be a discrepancy between the worlds of ideas and the world as it really is. More vacation, better treatment for maternal child relationships and daycare.”. Why should the government? All this according to a very reputable publication, The Economist. Further, many are just plain jerks and think this economic system is some new-found religion and are rigid in their thinking. Corporate tax rates are important as this is a huge drag on the economy. I seem like a Libertarian Democrat. I prefer to keep my own money in my pocket and invest in my health and education of my family. These are probably the best (one line) definitions of capitalism I’ve come across that don’t have the words socialism or communism in them. Capitalism does not care if people need the medicine, capitalism does not care if our citizens are educated and cultured. The Europeans I know are pretty happy, they do not like the corruption in their governments, but the social system they think is pretty nice, and further, it is unbelievable that in the USA you have homelessness and social problems or people living in trailers like in Florida or ghettos like Detroit. But here is a fact that most won’t believe, Obama is wildly known as a spender but according to this article, from a reputable source, it just ain’t so. Really they are heartless people. Semi-free markets spread through Eastern Europe. That was their joy. It is mostly waste. You just have to be creative and daring. For example, in Alabama one company, Blue Cross Blue Shield, has an 84 percent market share and in Hawaii it has 65 percent market share. In a … How is health care free when you still pay taxes on it can you explain that two me. Why Capitalism is Bad. However, not fully as many of the descendants of the richest families have lost their wealth if you trace it through time, life always reinvents itself. I’m not sure why, but that’s just the way it is. Learn More{{/message}}, Economics of Freedom, Peace and Prosperity. Capitalist is the main cause of wars being here on the earth. I am a financial writer, publisher, and New York Times bestselling-author. Conspiracy theories like this have been around for decades and I submit to you to Mr Dunn to list inventions or discoveries that were stifled or delayed because it would have cut into rich peoples earnings. Sure you pay, just like the USA, but you get healthcare, free education to the University level, great public transport, a lot of niceties that you do not get in the USA. How many. While family neighborhood stores are a critical part of the economy, it is important to distinguish between small businesses and the high-growth startups that Haltiwanger describes. People think capitalist lack compassion and an alternative system like socialism will bring more peace and justice to the world. Here are other examples: The list of industries with dominant players is endless. They have done so by killing local banks that once financed local businesses on favorable terms. “How does this magic happen?” he asks rhetorically. I am not a doomsayer, you never know the future. Capitalism is based on greed. Every dollar the budget is leaking, regardless of the relative size it is a drain on the potential for wealth creation. We are in agreement on some points. At the heart of the discontent in the US is faltering wages, writes Richard Reeves The poor in America would be super rich in most places in the world. Money is like water, it will flow to the most intellectually productive. Think small scale, start to build your own house and grow your own food and search the web on ways to make money. Now that it’s Christmas season again, it seems like a good opportunity to respond to the list 10 Greatest Benefits of Capitalism with which I believe there were a number of problems. 35 years ago the computer you are using to post you comments would have cost several million dollars, take an acre of land and be less efficient than what you have now. Thats is a form of fascism. The budget is still out of control because at some point if you look at the Office of Budget we will have a perpetual fiscal crisis under current tax rates. Capitalism is good. You said They ask how can Americans afford to live, added to the fact that University, medical care and retirement is not paid for by the goverment in the USA. Time and time again American’s have stated that they like things a ‘a carte and wouldn’t put up with a system that provides all of these (great) services if it costs them one more penny in tax. 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