Why Capitalism Wins

From Doc Zero:

Socialism always seems to have a marketing advantage over capitalism. This is not surprising, because socialism is a deeply romantic notion: a dangerously seductive dream of prosperity as a function of justice, where the wise redistribute the profits of the wicked to care for the needy. Socialism’s promises are so alluring that questions about its poor performance are dismissed as rude. It is a childish philosophy, and like any errant child, it receives a limitless supply of forgiveness and second chances.

Capitalism rarely enjoys such wonderful advertising. To the academic, it seems vulgar, while the politician flatters his constituents by promising they can rise above crass materialism… by placing material concerns in the hands of politicians. In truth, capitalism is the chisel free people use to carve their dreams from the stone of history. Without it, we are “free” only to beg for the bounty of the State, and complain when it fails to deliver. Freedom is only a theory, when it lacks a practical means of expression. Freedom of speech without property leaves us doodling in the sand, instead of carving our will into stone.

We should be more forceful in declaring our love for capitalism. It should be a mature love, born of respect for its power and virtue, not a starry-eyed romance. For example, we should be thankful that capitalism is merciless. That might seem like a strange thing to celebrate, but it’s the reason we haven’t been subsidizing buggy-whip and vacuum tube production for decades. Left to its own devices, the free market doesn’t waste energy propping up the production of unwanted goods for sentimental reasons… or because the manufacturers of those goods are politically powerful enough to extract subsidies from the public.

We should also be grateful that capitalism is heartless. Sentimentality is expensive, especially when other people are taxed to pay for it. The lawful governance of a vast nation requires cold logic, and iron obedience to Constitutional discipline. The unsustainable programs bleeding us into fiscal ruin were sold to voters with emotional appeals. The architects of the entitlement state do not use children as props because they want you to think carefully about their proposals.

Emotion is a terrible basis for allocating resources. The essential tool for addressing disaster and poverty is wealth, which is created by transactions between citizens. Money is the tool that makes our time valuable to one another. A rich nation can afford to provide for the unfortunate, and develop goods that make everyone’s life better. The “heartless” efficiency of capitalism is the best way to coordinate our skills and resources, producing the fountain of value that nourishes us all.

RTWT.