As I have said before, any criticism of capitalism is lensed in the filters that are caused by America’s insistence on tinkering with Capitalism, otherwise known as regulation. While regulation always appears to be for the sake of the small man, or the safety of the powerless, it almost always turns out to be a way for someone to hedge the market in his favor, and usually that means those with enough resources to enact the regulations that will protect them from open competition. “Trickle down economics” has been hijacked in this way and greatly hindered. In a truly open market, when the rich make more they create a larger pool of wealth that trickles down to many people and lifts the whole economy. In crony economics, the smaller interests are choked to the point of being unable to afford the benefits of the trickle down. In actuality, the trickle down is absorbed by the regulatory machine and ceases to exist. In this way, the rich still increase the pool of wealth, but no one is able to share it.
Yet, one can see all over the globe that enterprising people create niches of oportunity for themselves and others under even the most totalitarian and ruthless of regulatory governments — under Mao, for instance. There is always hope for an economy whose drivers refuse to be regulated into non-existence. There will always be those who operate under the common laws of decency and presenting a product with honest value at an honest price, even when those who do so have to run fast and loose with the regulations. This is what we call the “black market.” Perhaps it is not so much black as hidden.
Markets are like weeds. They are impossible to stamp out. Markets emerge wherever and whenever there exist opportunities for individuals to gain through exchange. But not all markets are equal. Market exchanges in the absence of property rules take place, but possess characteristics which are not desirable for long-term economic growth.
One of the greatest travesties in the history of mankind involves the collective cognizance of the average dumbed down American. He (and especially she) has forgotten (or has had it brainwashed away) the idea that private property rights are the foundation of ALL freedoms. ALL human “rights” are also private property rights.
Take for example, the supreme court case that dealt with “shouting ‘fire’ in a crowded theater.” The court’s ruling put a serious limitation on the freedom of speech because the brief was couched in the wrong terms. This was NOT a “free speech” issue. It was a “property rights” issue. So whose property rights…
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