AUSTRIAN ECONOMICS ADDICT

Many people think big businesses like free market capitalism. The truth is when big businesses were small they liked free market capitalism, because it allowed them to compete with bigger businesses for a share of the market. Once these businesses get big, they don’t like competition. They want to protect their position in the market, and the only way to do that is to try to get Government to pass regulations that makes it difficult for their competitors to compete. This is crony capitalism.

Free market capitalism rewards people who are good at production. They are rewarded by consumers who vote with their dollars on who provides the best product or service. Crony capitalism rewards people who are good at political games.

Free market capitalism uses scarce resources more efficiently than the waste that occurs in a crony capitalist system. {Solyndra}

Top Three Common Myths Of Capitalism, Video by learnliberty.org.

Here is a quote by Murray Rothbard,

“The market promotes and rewards the skills of production and voluntary cooperation. The Government enterprise promotes the skills of mass coercion and bureaucratic submission…and those who get to the top will be those with the most skill in that particular task.”

Related Article – Walter E. Williams: Free Market Capitalism Creates A Higher Standard Of Living For Everyone, by austrianaddict.com.

Related Article – Why Is Capitalism So Unpopular? by Art Carden at mises.org. Excerpt from the article.

“Under capitalism, the common man does not need an intellectual vanguard or a group of virtuous surrogates to make his decisions for him or to defend him against the rapacity of his fellows. He can do just fine without our help, thank you very much, and would be much obliged if we would go back to our ivory towers and leave him alone.”

Related Article – Do Capitalists Produce Nothing, by D. W. MacKenzie, at mises.org. Excerpt from the article.

“Capitalists who improve production plans serve the needs of consumers and produce economic progress. This is how the system that we accurately call “free enterprise” actually works. Capitalists who participate in the redistribution of wealth through government policy produce disruptive production plans and economic waste. That is how the system that we accurately call “crony capitalism” works.”

This entry was posted on April 4, 2014 at 1:01 am and is filed under Econ. 101. You can subscribe via RSS 2.0 feed to this post's comments.

Tags: Crony Capitalism, Free Market Capitalism, Government Coercion, Murray Rothbard, Production Process, Scarce Resources, Voluntary Exchange