It’s hard to make a case for the superiority of capitalism when the Federal Reserve creates dollars amounting to 23% of GDP and hands them out. Capitalism failed, folks. It failed utterly and completely in 2008.
So when money itself is exposed as a substance created from nothingness on a whim buy a central bank then capitalism or socialism or any other ISM associated with money loses all of its meaning. There can be no superiority of one ISM over another ISM if money itself is exposed as a whimsical
Substance.
And no oh, don’t leave to think that this is supposed to be another gold worshipping presentation. Gold also means nothing. This is not physics. It’s not gravity. It’s not measurable electricity. It’s imagination. The substance has value only because you believe it does. Gravity exists whether you believe it does or not.
Let’s offer up another example of why Maduro’s evil needs redefining. We’re running a 1 trillion dollar deficit. GDP is between 20 and 21 trillion. That’s an external injection of about 5% of GDP into the economy. And what does this get us? 2% growth. Its fiscal stimulus of 5% of the size of the entire economy and all that generates is 2% growth. Capitalism erases 3% of the money injected. How is this admirable? How is this worthy of our praise?
Call me harsh, but I detect a touch of crankiness about matters monetary.
That wasn’t capitalism, that was corporatism. Capitalism died with the income tax.
I don't recall who it was who observed that "capitalism" is the only major economic system that was named by its opponents. Karl Marx invented (or at least popularized) the word as a term of opprobrium for what was then known as economic liberalism. Economic liberalism was itself defined in opposition to the feudal and mercantilist systems that had preceded it. It represented the assertion of free markets against the power of the state.
Since this position evolved slowly and organically in Britain and parts of northern Europe in the 17th-19th centuries, there are many variants on the pattern. There was a great deal of trial and error. It is an evolving thing. But it is rooted in the idea that people should be able to make their own decisions, trade freely with willing partners, enjoy security of property against thieves and predatory governments, be able to rely on the rule of law as opposed to arbitrary political diktats, and retain the fruits of their labor for their own use and enjoyment (which implies low or moderate taxation and, again, security of property and the rule of law).
The capitalist system/aka economic liberalism incentivizes initiative, creativity, hard work, savings and investment, personal responsibility, moderation of habits and prudent lifestyles, etc. It has proven to be the only reliable formula that our imperfect species has found for raising the mass of people from poverty and enabling long-term growth.
None of this has anything to do with fiat money.
And when you say that "capitalism" has failed, what system, pray tell, would you hold up as superior? Government dominated cronyism seems to be the alternative now on offer. This is guaranteed mainly to enrich members of the political class while suppressing opportunity for other sectors of society. Which to the government class, motivated by envy and resentment, is a feature, not a bug.
Hard to make a case for superiority? What flag is on the moon again?
The Federal Reserve is not capitalistic, it's not a market force and it does not produce anything. The fed is a major defect in our system and should be entirely abolished.
Capitalism did not fail. It had worked for years but people realized they could vote things for themselves and stopped working for it.
When the government only existed to do the things it was told in the constitution to do, defend the country and move the mail, it did very well. Whenever it tries to do other things, it starts siphoning money out of the public realm, which is what kills capitalism.