Some Thoughts on Free Market Capitalism

unknown9001 (40)in #economics • 7 years ago

Let me ask you some rhetorical questions:

Would you be okay with me, some stranger you never met having full control over your life? Would you be okay me controlling what food you could eat? What education you can have? What clothes you wear? what profession you will work in? Are you okay with me a stranger having absolute power over your life? What if I promise to act in your best interest?

If the answer is NO!

What about 50% control over your life? Still NO? What about 25%? 10%? 5%? If the answer is NO to any amount of control over your life then you might be a free market capitalist.

You cannot separate economics from politics they are 1 and the same. Economics is how we manage resources and politics is how we structure society. There is a saying “Too many chiefs and not enough Indians”. Which refers to how not everyone can do the same job, not everyone can supervise. Jobs have to be delegated for society to function. Division of labor to produce abundance.

Free Market Capitalism is based on individual rights and freedoms. With these freedoms comes personal responsibility. No person or groups of people get more rights, more freedoms or special privileges over others. Since all people are equal from a rights point of view, all transactions are voluntary.

The second element of free market capitalism is capital. Capital is medium of exchange to distribute resources according to need/demand. In a voluntary transaction system resources (capital) will flow to those individuals who create the most value for society. People are incentivized to create value for society, benefiting everyone.

It should be noted: Most currencies in the world today do not fall under the requirement for free market capital. Fractional reserve banking or free banking (0 reserve requirements). Is illegal in a free market society. Its illegal because banks have special rights and privileges to create currency. When a bank creates currency out of nothing its legal tender, when an individual does the same thing its called counterfeiting. Gold historically has been money (capital) because gold is the same everywhere regardless of who produces. I might go into more detail in the future.

We don't have capitalism in the west. We have some capitalist elements, overall its centrally planned by banks and government through their market manipulations.

I don’t know about you, in school we were taught that communism is an extreme left wing and fascism is extreme right wing. THIS IS FALSE. Centralization of power is left wing policy and decentralization of power is right wing.

From: https://www.zerohedge.com/news/2018-04-23/regulated-states-america-occupational-licensing-gone-wild

Communism, fascism, theocracy, feudalism, corporatocracy, etc. are left wing ideologies. The more centralized economically/politically the further left it is on the spectrum. The further right on the political spectrum the more decentralized power will be. Far right is libertarian, anarchy capitalism (no government with 100% voluntary transactions).