Has Capitalism Failed?
Would I even ask the question if the answer wasn't "no"? Capitalism has failed only in the same sense that the laws of physics have failed when an airplane crashes. Let me explain.
Capitalism is another name for economic freedom. So, is freedom bad? Can it fail? No, it isn't bad - it's the pinnacle of human advancement. But not everyone is capable of living in a free society. When freedom is thrust upon those who cannot abide the rules of freedom, the society is doomed to fail. When those living in freedom lose the ability or desire to live according to the rules of freedom, the social system can't work and it will soon degenerate to some other form, such as socialism.
So, the astute reader asks, what are the rules of freedom? A simple expression of the economic rules, or The Rule of economic freedom, comes from Stephen R. Covey - "win-win or no deal". This means that in any transaction, both parties must win or the parties will choose not to do the transaction. If someone is in a position, for example, to make a killer deal in which someone else loses, they will refuse to do the deal.
That takes character.
A corollary is that one must abhor the "something for nothing" mentality. The focus is on providing value in return for any compensation received. It doesn't matter if you can't specifically identify who is losing in a deal - if you are gaining something without providing proportionate value in return, it's win-lose and you don't do the deal.
And that also happens to be the difference between self-interest and greed. The greedy person seeks gain at the expense of others. The greedy person prefers to take rather than give. The self-interested person, on the other hand, seeks gain only to the degree that he or she is able to provide value to others, and will always err on the side of giving more than they receive.
That doesn't mean that a person cannot become wealthy. Some people have great talent and can use that talent to acquire great wealth without ever engaging in win-lose transactions.
Why is the free America failing? Because we are failing as individuals. We lack the character necessary to live as free people.
What happened to our character? That's your homework assignment for today - tell me why the character of the American citizen is not what it needs to be to live as free men and women.
Capitalism is another name for economic freedom. So, is freedom bad? Can it fail? No, it isn't bad - it's the pinnacle of human advancement. But not everyone is capable of living in a free society. When freedom is thrust upon those who cannot abide the rules of freedom, the society is doomed to fail. When those living in freedom lose the ability or desire to live according to the rules of freedom, the social system can't work and it will soon degenerate to some other form, such as socialism.
So, the astute reader asks, what are the rules of freedom? A simple expression of the economic rules, or The Rule of economic freedom, comes from Stephen R. Covey - "win-win or no deal". This means that in any transaction, both parties must win or the parties will choose not to do the transaction. If someone is in a position, for example, to make a killer deal in which someone else loses, they will refuse to do the deal.
That takes character.
A corollary is that one must abhor the "something for nothing" mentality. The focus is on providing value in return for any compensation received. It doesn't matter if you can't specifically identify who is losing in a deal - if you are gaining something without providing proportionate value in return, it's win-lose and you don't do the deal.
And that also happens to be the difference between self-interest and greed. The greedy person seeks gain at the expense of others. The greedy person prefers to take rather than give. The self-interested person, on the other hand, seeks gain only to the degree that he or she is able to provide value to others, and will always err on the side of giving more than they receive.
That doesn't mean that a person cannot become wealthy. Some people have great talent and can use that talent to acquire great wealth without ever engaging in win-lose transactions.
Why is the free America failing? Because we are failing as individuals. We lack the character necessary to live as free people.
What happened to our character? That's your homework assignment for today - tell me why the character of the American citizen is not what it needs to be to live as free men and women.
posted by Pops | 8:49 PM
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