What Is Capitalism? Even Conservatives Can’t Explain It

American Thinker ^ | 01/16/2023 | James T. Moodey

[SeekAndFind]

It is a shame that, in the country that invented capitalism, we can’t explain it. Perhaps that is a reason we are losing it to socialism. Ask any conservative, or even an economist, and they are likely to describe it as “free markets.” Barter societies in the Middle East are free markets and they are mired in poverty.

Capitalism is not simply free markets. It is a designed, self-accelerating economic system that reduces prices and poverty. It was gradually designed, in the United States, from 1793 to 1914. Before we can understand capitalism’s benefits, we must define wealth and poverty in comprehensible economic terms.

The wealth of a nation is its amount of usable goods, just as poverty is a lack of usable goods. Poverty in a society is created by a lack of clothes, food, vehicles, housing, etc. If the supply of these usable goods is low, naturally, there is not enough to go around. This creates the divergence of wealthy and poor. It gets worse; those who can afford the limited supply of usable goods bid up the price, creating even more poor. A large supply of usable goods brings prices down so that more people can afford them. As the supply of usable goods rises, poverty declines.

The United States grew to be wealthy because we created far more usable goods than other nations. But how did that happen?

All usable goods are created by manufacturing. It is not the amount of money that manufacturing employees earn that is of value; it is the millions of shirts, hammers, and cars they produce that create wealth in a society.

[central_va]

We need an accross the board import tariff. Start at 10% and raisw it 1% per yer until the trade deficit is zero.

[central_va]

A nation with the natural resources of the USA should and can be 100% self sufficient manufucting.

[central_va]

Capitalism + Globalism = national suicide
Capitalism + nationalism = prosperity.

[Mr. Mohasky]

The health and wealth of a nation are inversely proportional to size and power of its government.

[Theoria]

Cuba is another example of .gov picking the winners. The heavy hand of the US on cuba has helped to squash it along with their own socialist leanings. However, the US rewarded trade with Communist China, and has helped to create a potential rival. A country that helped to kill tens of thousands of Americans in Vietnam and Korea.

[SeekAndFind]

Ok, what happens when government approaches zero?

[sten]

Capitalism was defined and codified in John Smith’s book, “the wealth of nations” in 1776.

I believe he was in Scotland at the time...

[Durus]

Show me a country in the Middle East that is truly a free market. No, the souk you bartered in while on vacation does not make it a free market nation.

[SeekAndFind]

RE: Capitalism was defined and codified in John Smith’s book, “the wealth of nations” in 1776.

Methinks you have mistaken Adam for John …

[SunkenCiv]

The term is a pejorative commie term, what is really meant is the classically liberal market economy. I didn't check, but the screed appears to be Partisan Media Stoogery.

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[Mr. Mohasky]

Freedom. However, even the Founders knew that some government was a necessary evil. The key was to limit its power. Today we have government with unchecked power, and half the country all to willing to give it more.

[Wildbill22]

Bingo. The term is actually invented by Marx, and I believe it was in his work Das Kapital where he defined it. As a term of the left and communism, I do not use it, preferring “freedom” and “the free market”, which is more along the lines of individual liberty.

[Oldeconomybuyer]

Of course. A clean healthy environment benefits all. I’ve been inside Chinese factories where there are almost no govt regulations.

[sten]

sorry, you’re correct. mixed them up. point still stands.

[curious7]

Last I heard, ‘Capitalism’ was a term coined by the commies to control the narrative and arguments. Free market is a better term - meaning minimal or no government interference of any type. Not regulations out the wahzoo.

[ro_dreaming]

Costs for products, either rising and lowering costs, due to the supply and the normal demand of product.

For example, right now we’re having a manufactured shortage in the supply of eggs - (by burning millions of chickens, closing farms, etc.) and the cost has increased because the demand has stayed the same, but the supply has dropped. So, until the demand drops or the supply increases, the costs will remain high.