Here’s a verbal picture of capitalism: initiative, independence, risk, innovation, be-all-you-can-be, self-control, exciting, growth, confidence and wealth transfer incentivization.
Conversely, here is socialism: oversight, government control, bureaucratization, regulation-nation, greater taxation, lethargic, greater government debt, disenchantment, welfare state, despair and wealth transfer disincentivization.
The comparison makes it sound like a no-brainer in favor of capitalism. But the socialists can make socialism sound so good: no personal risk. You are taken care of, ‘free” this, “free” that — a salary even if you don’t want to work. Sounds good until the inevitable point in time when it all goes south, way south.
As you read on, keep in mind two thoughts; wealth redistribution and the matter of incentivization vs. disincentivization.
Capitalism works; it is what this country is and always has been. Yes, capitalism can be a bumpy ride, but in the end, initiative, ingenuity, grit and confidence win out. Ours is a model for the world.
Post-Obama confidence in the economy and in the country is high, there is a surge in new small businesses, wages are up, new jobs created and former welfare families are back in the marketplace.
On the other hand, as advertised, the socialist tab for this country is almost incomprehensible; tens of trillions of dollars in new government spending. Who is going to pay? The Democrats/Liberals/Socialists/Progressives want us to believe the wealthy will pick up the tab.
The wealthy work hard, take risks and grow because no one tells them they can’t. They stumble, pick up the pieces, move on, move up and one day they have more money than they can spend. They have become part of the “top 1 percent.” What to do, put their excess money under the mattress? No, they invest it.
Capitalism doesn’t just happen. It has to be continuously fed and nurtured. The fuel for capitalism is, quite naturally, capital; principally money.
A capitalist scenario: You are the proud owner of a growing company because you can be. The government is not telling you that you cannot, or that you should not, or that you must get permission. No, it’s just you with a good idea, initiative and ingenuity. This person is incentivized.
You have your company in position to expand; you have everything except capital. You could go to the bank but they are generally pretty conservative and your plan has some risk; plus, they charge interest.
So instead you print some paper stock certificates and sell them. This piece of paper comes with no guarantees of success, no interest due and no due date for redemption. You promise to work hard, be smart, and do everything you can to be successful. And when you are, you pay dividends. And, oh by the way, that $100 piece of paper might someday be worth $1000 or $10,000.
Ain’t that a great story? Bernie Sanders and Alexandria Ocasio-Cortez would call it a fairytale. We call it capitalism at its best. We call it the American way. We call it success. We call it our future.
Now, for wealth redistribution, there are two vastly different ways to go about it. People and corporations produce goods and services, which equals a nation’s gross domestic product, GDP. President Obama’s stated plan was to heavily tax people and corporations and redistribute money back into the welfare state.
The second alternative is to lower taxes, turn the economy loose and let the rich folks “redistribute” their wealth to feed capitalism. When corporations grow, the economy grows, which promotes higher employment, more high-paying jobs and higher wages (exactly what is happening today). Ultimately, this formula can generate even greater tax revenue.
Some will say, “let’s give socialism a try,” but there is always a price. Bernie’s and Alexandria’s price is your freedom. Freedom to “be all you can be.”
Give up your freedom and you will be all the government tells you to be and no more. What is the incentive to even go to work? What is the incentive to think of a better way? What is the incentive to work harder?
What Alexandria Ocasio-Cortez and Bernie Sanders do not comprehend is the overpowering impact of disincentivization for every individual at every income level. At the lowest income there is a belief of “why should I work at all when the government is going to pay me anyway?” At the highest income level, there’s the belief of “why should I work hard when the government is going to take away most of what I make?” Because of that, a socialist economy cannot grow.
Socialism is synonymous with big government. Socialism v. capitalism: it’s a no-brainer.