Where capitalism has been allowed to thrive it has pulled the world along. We are in the midst of a micro-entrepreneurial revolution facilitated in large part by technology which is cheap and powerful. Please notice how technology is one of the least regulated sectors of the world economy. At least it is right now.
More people think like producers these days than probably ever before. They think more like owners than as employees. This is a very good thing for the economy if we allow the revolution to bloom.
People are chaining themselves to barricades and waving red flags in the streets of London in protest of the G8 talks. The protest has been called a “carnival against capitalism.” Sadly these folks do not understand the vital difference between “capitalism” which is voluntary and provides opportunity for those not blessed with access to the modern aristocracy, and “crony capitalism” where the state is hijacked by the powerful to line their pockets and consolidate power.
Washington DC is indeed booming. Over the past 5 years billions and billions of tax dollars have been poured into the local economy. Contractors of all sorts fill the mirrored buildings surrounding DC. The roads are choked with commuters, many of whom are new transplants from the less prosperous regions of the country. The wealth of a nation has been aggregated in and around the Beltway. Money is here and millions are being “made.” (Really, being redistributed.)
First of all, end the Fed. Just had to say that. End it tomorrow. It is the source of the modern boom and bust cycle, extended the Great Depression, inflated the tech and housing bubbles, and has extended the Great Recession. (Some of its crimes.) Now “Mr. let’s end Glass-Steagall and blow up the world with derivatives” is unofficially throwing his hat in the ring for Fed Chairman. People of the world rejoice, a new dawn is breaking!
A couple of readers have complained that we are being partisan in our coverage of the IRS enemies list scandal. For those who feel this way, we do not mean to be and we have plenty of disdain for both of the major parties. Keep reading and you will see this to be true.
I had the opportunity to moderate a panel with Mr. Zingales. We discussed crony capitalism and its effects on the economy primarily since the 2008 Crash. And we did it literally on Wall Street in the old mercantile exchange which was a bit of a kick. It was a very good time and I was very impressed with the professor. I am happy to recommend his book A Capitalism for the People.
Nothing, absolutely nothing, has raised more people out of abject poverty than free market capitalism. And I don’t mean a mixed system with some socialism and somewhat free markets here and there. I am talking about the real deal, where prices are free to move, free market CAPITALISM. This stands in direct conflict with what many of us have been taught of course.