Capitalism pays for all the other -isms.
The misguided people of the left regularly denounce capitalism and those who practice it. They think that individuals should not provide goods and services or own their own stuff, that the state should do all this instead. So lets look at who the nasty fat capitalists are: your hairdresser, corner shop, ethnic takeaway, taxi, window cleaner, publican, market trader, day nursery, etc. The fact is that most capitalist are small and medium sized businesses.
You may have noticed that you don’t live in a cave or hut and that you don’t wear animal skins. Instead you live in a rich society with cars, televisions, computers, overseas holidays, smartphones, double glazing and a million other wonders. All this wealth was created by capitalism, proven as the best way to organise society over thousands of years. And we would all be far wealthier if it wasn’t for the actions of governments, socialists, corporatists, cronies and all the other parasitic evils, who leech off capitalism.
So what is this capitalism that has done such amazing things to benefit humanity? It is when an individual, often with partners, competes in the market to provide goods and services to other people. Serving their fellow man. In doing so they often employ people and often generate wealth. This wealth generation is called profit, the reward for looking after customers. It is the motivation for people to succeed. And it pays for everything.
The major feature of capitalism is that ALL the parties benefit EVERY time there is a transaction. This is the opposite of socialism where nobody benefits from many transactions.
Of course capitalism is unequal. Some people are more able than others, some work harder, take more risks, invest their earnings, educate themselves and are more enterprising. Socialism does not like the success that this brings, so they seek to punish it by extorting from those who are successful and rewarding those who fail. Which inevitably means that society as a whole fails, as we have seen every time that socialism is tried.
If my neighbour has a yacht, a helicopter and a private jet I am very happy for him. His success does not make me poorer. In fact the opposite is true, his wealth comes from successfully competing in the market to provide goods and services, so he has made society and everyone in it better off. And he has paid immense taxes for the government to waste and squander.
Capitalism requires that some organisations are very big because of the complexity or risk of what they do. It costs over a billion pounds to bring a new drug to market and most drugs make a loss for their developer. This is a business of very high risk which needs very large global companies just to afford to improve our quality of life. A new commercial aircraft model takes many billions of investment and involves tens of thousands of people in its manufacture. Boeing and Airbus have transformed our lives. Supermarkets provide us with many thousands of products, all in perfect condition, at incredibly low prices. These are all amazing organisations who use their economies of scale to look after their customers. So, as you can see, we all benefit from big capitalist organisations.
There are two very nasty things that are definitely NOT capitalism but which uneducated people think are capitalism. And these are cronyism and corporatism.
Cronyism is when the market is ignored and business is done on the basis of favours. Sometimes this can be on a small but pervasive scale, as with much freemasonry. Sometimes it can be on the immense scale of huge defence contracts where there is no competition and just one company gets the business. The Typhoon fighter project for the RAF was originally budgeted to cost £7 billion of our money, the latest figure is £37 billion and that is for fewer aircraft. A fivefold increase in cost. We could have bought, say, F18s for a fraction of the price.
Corporatism is where special interests are allowed to override capitalism. We see this with massive subsidies paid to farmers, with the CPRE forcing us to live in rabbit hutches, with trade unions irresponsibly wielding power and with the trillions being wasted on greenism and the warmist pseudoscientists.
As is very clear to see we would be a huge amount better off if capitalism was allowed to work properly, governments, socialists, corporatists and cronies need to be minimised or eliminated, all four of these make us poorer and reduce our quality of life.
A brilliant example of capitalism are the German Mittelstand companies, the power houses of their economy. Small and medium sized, family owned and handed down from generation to generation they are highly efficient and very focused with an emphasis on serving markets wherever they are globally and adapting very quickly to change. They employ over 70% of Germany’s private sector workers. In Britain our ridiculous, envy driven, death duties and our malicious trade unions are very powerful mechanics against us creating our own Mittelstand and we are all very much poorer because of this.
As we head into a general election it is very clear to see that the Conservatives are working very hard to maximise capitalism and the generation of wealth to make us all better off. It is also very clear to see that Labour don’t know where wealth comes from so they have policies that seek to destroy it and make us all worse off. They think that “social justice” means punishing success and rewarding failure. They simply do not understand either economics or the brilliance of capitalism.