I want to talk about the finest economic model on Earth, the thing that leads to ultimate prosperity. It is called Capitalism, and it was invented by ultimate economist Adam Smith in 1776 AD when he wrote The Wealth of Nations. Now, what is Capitalism? It is an economic model where all people are self-owned and all of their belongings are inherently theirs and they have the option of buying more things and/or selling items and services. In its purest form, it is known as “Laissez-faire economic liberalism”, wherein there are no restrictions, no tariffs, no subsidies, no entitlements and no corporate welfare, and the only forms government intervention at all being rational, individualism-guided incentives, along with the lowest & flattest taxation possible.
There are various elements of legitimate Capitalism, and some of them are as follows:
- Free-Market Environmentalism: The understanding of the fact that environmental problems are mainly caused by government taking away property rights and structuring tort claims, and that the latter behavior results in big polluters getting away with damaging the ecosystem.
- Rational Incentives: These are how a government can provide people and companies with motivation to free-range-farm animal species, promote nutrition among customers who want healthy nutrition for themselves and/or their minors, regrow chopped-down trees, reserve the “all-of-the-above” approaches to fuel for Green fuels, and teach real science as opposed to creationism and man-made pollution denial. Incentives are not restrictions. Incentives motivate people to do something. Restrictions force people to not do something. Difference doesn’t get simpler than that.
- Unrestricted Free Trade: This is basically Capitalism overseas, and is the permission to Trade freely with merchants overseas. The beauty of unrestricted Free Trade is you have plenty of freedom to operate as you will without violating others, and you get rational incentives to consider your workers (if you employ any) and the natural environment, instead of being forced to conform to superstitious Green issues-related dogma or being forced to ignore the individual work ethics of individual laborers which you would have to be in this vile thing they call “Fair” trade. I mean seriously, since when is it “fair” to force employers to ignore different employees’ different work ethics and/or to force people and companies to base their environmental moves on dogma rather than on science? We already discussed environment, but the labor stuff brings us right into Meritocracy…
- Advancement based entirely on ability & work ethic: Fiscal Meritocracy is what I would call this, but the official name is just plain “Meritocracy”. The word Meritocracy derives from the Latin and Greek words Latin “Mereo”, meaning “earned”, and Greek “Kratos” meaning “power”. In Capitalism, Meritocracy determines how rich one gets based on how hard and smart one works on any project during work time or job time. In other words, Capitalism translates “Mereo Kratos” as “Earned Riches”. Let that sink in before I continue, please.
Referring back to the title
Evidence suggests that Capitalism WORKS! Government can provide rational, Meritocratic & market-based incentives to business and individuals all fiscal year long and it will only help the economy but once government starts whipping up restrictions to impose, it starts creating dysfunction, distortion and disaster. So, how is my nation (America) doing with the Capitalism thing? Well… Here is the good news:
- The US Economy is Mostly Free, it is 12th in freedom and 5th in competition.
- America happens to be the 7th easiest place on Earth to do business
- The US continues to be world leader in size of economy
- The US is well within the top 25 highest average individual incomes based on GDP per capita
And now we come to the bad news:
- America is 46th in the world in Ease of starting a business
- The US has at least 82,000 different Federal Restrictions on individual activity, fiscal and personal
- Our Federal government thinks that 7 tax rates for a single national population is somehow not absurd. It thinks that a flat tax where for example everyone pays 8% would mean rich people living at the expense of poor people, even with people only needing basic math to disprove this dogma
- The lowest rate and highest rate are 10% and 40% respectively, and the mean and believe it or not median of taxes is 28%, twenty percentage points more than the flat rate that we should have.
To get real Capitalism back to America, we need to replace all structure with rational, individualism-guided incentives, replace progressive tax with a flat tax where everyone pays 8% federally, and replace all entitlements (including corporate welfare) with rational, meritocracy-based incentives. Now, these are not going to happen overnight, and a revolution will only make these changes impossible. The way to get these solutions across is through petitions, gradualism, enlightenment, and reform; NOT revolution.
Thank you all for learning about Capitalism, and Happy New Years! Tomorrow begins the very year of 2015, wherein hopefully we can get these reforms in place without resorting to revolution.