Posted tagged ‘Means of Production’

Milton Friedman Wins The Democrat Debate Against Hillary Clinton And Bernie Sanders

October 15, 2015

The first Democrat debate between Bernie Sanders and Hillary Clinton seemed like a debate between Karl Marx and Fidel Castro. Sanders truly believes that Marxist socialism will work, and Hillary just uses the Marxist rhetoric to win a position of power. The real winner in the debate was Milton Friedman who, in the video below, knocks Bernie and Hillary’s free lunch rhetoric out of the park.

SERFDOM OR FREEDOM

Bernie and Hillary tried to out do each other on what they will give away if elected. But, since Government doesn’t produce anything. It can’t give anything away unless politicians and bureaucrats try one or all of the steps listed below.

1)  They can force the person who produces the good or service to provide it for free.

2) They can confiscate money from citizens (taxes) to pay the people who produce the good or service.

3) If they can’t steal enough, they have to borrow money to pay the people who produce the good or service.

4) If they can’t do #2 or #3, they have to get the Federal reserve to print money to pay the people who produce the good or service.

Our Government has spent a little over a half a trillion (500 billion) dollars more than it has taken in taxes each of the last 3 years. These three years follow a three-year period in which it spent over a trillion more than it took in taxes in each year. So as you can see we have exhausted step 2 and are at full speed on steps 3 and 4.

Since no one will work for nothing when they have other options, step one is difficult to implement. Step two has its limits as revenue will start to decrease if taxes are too high. Step 3 syphons money from capital markets and moves it into consumption activities (which is what government spending is). If Government borrows too much, interest rates will go up, the cost of the debt will increase, and Government will have a hard time selling its debt. At this point step 4 will be implemented. The Federal Reserve will step in and buy U.S. T-Bills with electronically printed counterfeit money. Step four is how the Government can fund itself if 2 and 3 are maxed out.

These steps are not a part of a free society, they happen in a country that is heading toward a centrally planned Marxist society. If the government doesn’t own the means of production out right, it uses its force to control the privately owned means of production. This is where we are, and I think you can see the direction we are headed unless ‘we the people’ turn this around.

Related ArticleMilton Friedman, Moving Toward Serfdom, at austrianaddict.com

Related ArticleMilton Friedman: Market Failure vs. Government Failure. Which Has A Higher Cost? at austrianaddict.com.

Related ArticleThe Essential HAYEK. at austrianaddict.com.

 

Pope: “Capitalism Lacks Morals And Promotes Selfish Behavior”

September 24, 2015

The Pope will address a joint session of congress Thursday morning. Except for about 50 of the members, all will be in agreement with the Pope’s understanding and dislike of capitalism. Our Congressman and Senator’s anti-capitalist politics comes from being educated in anti-capitalist universities. The Peronist Roots of Pope Francis are the reason for his anti-capitalism politics.

BACKGROUND

Pope Francis was born in Buenos Aires Argentina in 1936. Juan Peron was the President of Argentina from 46-55 and gave his political movement the name Peronism. Peronism rejects the extremes of capitalism and communism and is considered a third way. The Justicalist Party is the party of peronism. Justicalist comes from the Spanish words justicia and social, the English translation being social justice. The Pope’s formative years were during the Peron era. Of course Peronism didn’t go away when Juan Peron was deposed in 1955, the ideology is still alive today. You can read more by clicking on the words above.

SOME DEFINITIONS

Lets start with a few definitions before we talk about the Popes comments about capitalism. Capitalism means private ownership of the means of production. Socialism means state ownership of the means of production. In a capitalist economy decision-making power over the use of capital is dispersed among the people. In a socialist economy decision-making power over the use of capital is concentrated in one person of a small group of people.

Communism and Nazism are examples of state ownership of the means of production. The U.S., as founded, was an example of private ownership of the means of production. Do you think that either Chinese communism or U.S. capitalism, as they exist today, fit the definitions of socialism or capitalism? No! As constituted today they are third ways just like Peronism. Almost all countries are middle grounds moving toward or away from capitalism or socialism. The middle ground between capitalism and socialism is chaotic, just look at the world today.

LETS LOOK AT THE POPES COMMENTS ABOUT CAPITALISM

Pope Francis: “Capitalism lacks morals and promotes selfish behavior.”

Capitalism lacks morals?

Only individuals can be moral. Capitalism is an economic system that is neither moral nor immoral. It’s analogous to Governments. Governments aren’t moral or immoral, only individuals in government can be moral or immoral. The Pope should understand this because Christianity teaches individual salvation. Each individual is reconciled to God through Christ. There is no group salvation.

 

Capitalism promotes selfish behavior?

Every individual by nature is selfish. Does capitalism incentivize {promote} selfish behavior? Since we don’t live in the Garden of Eden (we messed that sweet deal up didn’t we?) where everything exists in abundance, where do all the things we need and want come from? They have to be produced. To get what you want, you can produce it yourself, exchange what you have produced for it, its owner can give it to you as a gift, you can steal it from its owner, or you can have someone else steal it and give it to you in exchange for something they want {your vote}.

In a free market capitalist system you must first produce before you can consume. Capitalism incentivizes production and exchange. In order for you to get what you want from another person you must first produce something that they want and offer it in exchange. You have to give before you receive. Isn’t this the golden rule of Christianity. How can the Pope not see this?

I think the Pope looks at our current middle ground between capitalism and socialism and thinks this is true capitalism. He, like many individuals in positions of power think this way. Their ignorance in and of itself, isn’t a bad thing. It only becomes bad when they enact policies in this state of ignorance. These policies influence and affect the lives of billions of people.

Here is the difference between capitalism and socialism. In a capitalist economic system, the means of production are owned by millions of people who are all selfish. The damage selfish people can do in this system is limited, first because decisions about capital are dispersed among many individuals, and second an individual can only be selfish for a while before he goes broke. In a socialist economy, where the means of production are owned by the state, a small group of leaders make decisions about the means of production. These people at the top haven’t traded in their pitch forks and horns for a halo and wings. The damage these selfish people can do in this system is unlimited, first because the decisions are one size fits all and are disastrous if wrong, and second because they can remain selfish in their pursuits no matter the results.

The Pope needs to stick to his ordained mission of mercy and reconciliation and stay away from economics until he reads Mises, Hayek and Rothbard. Until he does, he is speaking from a position of ignorance about economics. The Pope is not alone in his ignorance. He will be speaking to a group of people today who are in the same state of ignorance about economics as he is.

Watch this short video I posted last week titled, Is Capitalism Moral, by Walter E. Williams, it is informative.

Here are two great articles about the Pope’s ideology.

The Left Has Its Pope, by Thomas Sowell, at jewishworldreview.com.

Pope Francis’ Fact-Free Flamboyance, by George Will, at jewishworldreview.com.