Capitalism: socialism's Red Herring

Capitalism: socialism’s Red Herring

There is currently a tidal wave of sentiment in the media proclaiming the “failure of Capitalism” and why it is to blame for the current financial crisis. In abundance are documentaries and films like Michael Moore’s hypocritical “Capitalism: A Love Story” (which mistakenly confuses Capitalism with fascism – all while he uses real Capitalism to market and distribute his socialist* ideals). This is all a red herring put forth by the socialists to divert attention away from the real culprit: government intervention. The fact is that we have not had true Capitalism for a long time.

The Federal Reserve’s manipulation and control of the money supply – protected by the legal tender laws – have created the booms and busts in our economy as so eloquently explained by the economists of the Austrian School.

It is precisely these government agencies and their policies that have created the moral hazard that has led to this current financial crisis. Institutions like the FDIC, SPIC, Fannie Mae, Freddie Mac and all licensing agencies create a false sense of security enabling the protected individuals and institutions to proceed with their plunder without fear of reprisal – all while the masses sleep in their false sense of security. A good illustration of this point is a statement that a licensed real estate associate of mine once made, “having a license is like having a license to steal”.

Without these government backstops the populace would have to wake up from their slumber, do their own ‘due diligence’ on those with whom they put their trust, and take personal responsibility for their own actions.

Whatever the government can do, the private sector can do better – and cheaper. If this were not true, why are we forced to pay for government services? If their services were so valuable we would naturally pay for them voluntarily. Yes, men make mistakes, and so will the private sector. In a free market at least we have the option to vote with our dollars and take them to the competition. In a controlled market, we are limited to one choice – government’s choice – even when they make mistakes.

It is time for us Americans to stop looking to the “nanny state” for the solutions to our every problem and take personal responsibility. In conclusion I leave you with the following quote:

“Be careful of whom you make your protector lest they become your jailer.”

*I do not capitalize “socialist” for a reason. Any philosophy that is the antithesis of freedom is not worthy of the courtesy.