Follow The Bottom Violation
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Dec
31
A Few Remarks About Capitalism
1. The term Capitalism was popularized by Karl Marx and Friedrich Engels. They explicitly used it to refer to people who owned private capital. It describes their interpretation of markets — from a Communist perspective. It is based on the context of their time (and ours) — in which governments own a significant portion of the capital in society and the economy. It is incomplete, and utterly incompatible with concept of free markets – especially as defined by the Austrian School of Economics.
2. Given this (proper) definition of Capitalism, I doubt any Austrians, libertarians, or other free-market advocates would disagree that Capitalism is a dismal failure — due exclusively to the governmental component.
3. A free market economy cannot exist when the blood source of that economy — its money supply — is owned by a centralized government, and any competition is strictly forbidden.
4. When banks become “too big to fail” they are no longer private entities. When a government steps in to financially support an institution, it becomes — by definition — an extension of that government.
5. Our current economic malaise is not a product of market failure. It is a product of government failure.
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Disclosures: Paco is long TBT, UCO, and gold. He also holds U.S. dollars by necessity, pending the advent of private gold-backed currencies.
You can buy his novel Discipline wherever books are sold.
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