What is Capitalism?

I often wonder what people think is involved with Capitalism. Why do some hate it so much, while others fight for it with heart and soul? Why has Capitalism lead to so much anger and frustration? Do the opponents of Capitalism have a point? Isn't the system of Capitalism a bad system of greed and unequal distribution of wealth in the world?

In short: No. In short I will state here and now that those who fight against Capitalism are either ignorant or stupid. Does that sound like an arrogant point of view? Allow me to try to explain myself then.

Those who oppose Capitalism oppose a number of other things at the same time, whether they acknowledge it or not. For example, they oppose:

• The freedom to exchange services and products which one has to offer and another needs to have.
• The freedom to participate in volunteer and non-forced exchange of services and products in a harmless way without interference.
• The freedom for individuals to use their capabilities and talents in order to improve their lives, and meanwhile but unintended improve lives of many others.

Of course the opponents of Capitalism will not agree with this list of mine. They will say they want people to have all the freedom in the world, but the government must have a big role in making sure that people have jobs and food on their tables and a high standard of living. Do I have anything against that? No. However, all these things are best insured by allowing Capitalism to work as free as possible. Why can I say that when all this poverty exists? Because I can point to many facts indicating that what is really wrong with Capitalism is the lack of it, or the restrictions put on it in most countries and parts of the world. Why the restrictions when it's so good? Because politicians think they can manipulate free people and the activities of free people, and fail, and then try harder.

Why shouldn't politicians try to make sure in some way that everyone has this and that, and access to this and that, and be left alone to do so? Well, why doesn't Socialism and its bastard-baby, Communism, work? Why hasn't and won't the so-called Third Way work? Because as soon as you try to control the natural process of free exchange of services and products between peaceful induviduals, you might as well throw sand into an engine and expect it to work better. I can name a long list to underline my point, and I will:

• Sweden and Germany took up widespread Capitalism in the years after World War II. They became extremely rich and prospered and became the envy of Europe. However, both were playing a little with a thing called a welfare system, and that turned out to be a bad move. The system expanded and soon swallowed up a huge chunk of the national income. The result is that Sweden and Germany are among the slowest economies in Europe today. They tried to control Capitalism and improve lives, but ended up creating a large burden on future generations, and present generations have to find ways to take up Capitalism again and throwing away their welfare systems, or at least reduce them a lot.
• Hong Kong, Taiwan and Singapore are well-known for their lack of resources, primitive industry a few decades ago, and extremely high national income today. These countries rose from the ground with nothing but the will to communicate and commerce, and enjoy the fruits now. Unfortunately, the trend seems to be the same as in Europe, and now I hear talks about law-enforced minimum wages being suggested in Hong Kong. If these countries start to follow the path of Socialism, they will soon face what Europeans are facing today. Those who don't know history are doomed to repeat it - right?
• Africa is pretty much a continent of wars, starvation, poverty, abundance of natural resources, wide spreads of green, fertile lands - and lack of Capitalism! Africa has been plagued by government control, ever since Europeans drew the borders of the lands of Africa in the colony-era. Socialistic dictators, sponsored by kind-hearted European Leftists, have fought for lands and powers for decades. Why? All because Capitalism wasn't allowed to flourish under a government focusing on keeping the laws, but not a government obsessed with organizing the way people live and act.

I could name more. South-America, the troubles of North-America today and its success in the 19th century, and so on.

The point is that those who fight against Capitalism can't stand how some people become extremely rich, while others pretty much stay the same. They call it the "income gap", and hate those to are at its higher end. The opponents of Capitalism must learn that those who are rich invest, and those who are poor gain jobs. Under the system of Capitalism, the free flow of money and people insures that the best solution at each time is underway. Under a system of Socialism, the restricted flow of money and people, enforced by law and governments, insures that something else than the best solution is underway.