Free market capitalism is morally neutral. It’s possible to accumulate great wealth by curing cancer or by selling cocaine. We can do good or evil and be well paid for either or both. The role of the government should be to ensure that those who hurt others in pursuit of wealth are punished and that those who help others along the way are encouraged. – Dick Morris & Eileen McGann (Fleeced)

The recent release of Michael Moore’s movie Capitalism: A Love Story and the current economic situation has prompted me analyze the merits and faults of capitalism. Though I have not seen this movie yet it has provoked interesting discussions with friends about it.  So what exactly is capitalism and is it really to blame for the recent economic crisis?

Websters Dictionary defines capitalism as “an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.”

If you adhere to this definition can America even consider itself to be a capitalistic society? I do not know a lot about the Federal Reserve, and there are some out there who believe we should end the Federal Reserve or at least audit it. Ron Paul is an advocate of this and I intend to read his book End The Fed.

If the government interferes with interest rates and does not let the market correct itself then it is not a “free market”. If the government provides “bail outs” for corporations that take unnecessary risks and makes bad decisions then it does not sound like Capitalism to me.

I started this post with a quote from a book I have recently read “Fleeced“, written by Dick Morris & Eileen McGann. He makes a good point in stating that capitalism is “morally neutral”. In a perfect world companies would make a profit without harming other people. Capitalism is not evil but GREED is.  I think this quote is very accurate. The role of the government should be to “protect” us if a company harms others in the pursuit of wealth. The problem is often a “conflict of interest” if the corporation a politician regulates contributes to his or her campaign. (The influence of lobbyists is a completely different topic of discussion which I will explore in depth later).

What is the alternative to a capitalistic society? I recently read Atlas Shrugged by Ayn Rand. Though it is fiction it really captured the flaws of Socialism and demonstrated how much harm can be done in the name of public good.  (But more on that later. )

Please post a Comment – and let others benefit from your wisdom. Thanks