Wednesday, October 31, 2007

Once again, a Communist knows nothing.

From "The Truth by Scott:"

So what's the controversy? Well, Capitalism doesn't work as a political system. It's not a political system. It can't be a political system any more than you can smell the color blue. You might have political systems that work well with Capitalism or you might not. But if you try to replace our Republic with Capitalism, you will end up with what is commonly called, "Anarchy". Anarchy, by definition is the absence of political authority.
And so what? Capitalism is not a political system, although politics and economics are inevitably intertwined. Capitalism is the absence of government control (or at least minimized control) over the market, not complete anarchy. This is a false dichotomy. Government still exists with or without capitalism, it's just smaller and yields to individual FREEDOM. If freedom is not your bag, fine. But don't take away mine.

On how capitalism doesn't work in all cases:

Here's a recent example of something Capitalism doesn't work for. There is a potential for a severe flu pandemic in the next few years based on reports coming out of southeast Asia.
The best way to combat a reappearance of this disease is to eliminate it at its source - birds. But where is the Capitalist incentive to do that? Poor farmers don't get paid for birds they kill, unless their government intervenes (a Capitalist no-no). The idea of individual property rights would preclude outsiders from killing those birds. And in any event, it only takes a few infected people to start the chain reaction that would spread disease across the world at the speed of a 747.
Wrong again. As long as individuals desire protection from a disease, a market will arise. Maybe not in the form of pegging any bird you see, but then again, this would be unethical, wasteful, and ultimately inefficient. However, let's assume that it is better for government to step in and take care of it. Is it not the role of government to protect it's citizens? Is this not why we pay taxes? But who is it that comes up with your antibiotics and treatments, and develops immunizations? More often than not, these innovations come from the private sector. Once again, he is failing in assuming that with capitalism, there is no government. He is confused.

The answer here is that Capitalism doesn't work for these situations because Capitalism has nothing to do with them. As human beings, we have recognized this fact for thousands of years, which is why we create binding associations. (We call them governments.) Capitalism is swell at selling excess flu vaccines. But if we want to protect grandma from the flu, we need government intervention. We need government intervention to kill sick birds in Indonesia. We need government intervention to vaccinate our children. What the government looks like is up to us. But one thing is for sure - it won't be Capitalist.

Well, he is really good at getting things half right, at best. Yes, it is the role of government and not capitalism to provide security. However, what makes you think that government will do better at immunizing than the private sector? And good luck hunting down every last sick bird in Indonesia. There is a way to pass restrictions and regulations so that birds with Avian Flu do not find their way here, or to limit travel from affected areas, but once again this is why we have government. And hes right: Government is not capitalist. Why? Because government will always get a steady paycheck no matter how badly they perform. Capitalism provides an INCENTIVE to excel. It is the ultimate form of democracy, because we vote with our money.

Yes, in extreme cases, government intervention is warranted. But this is why we pay for those services. This is no case against the value of capitalism.

And now, if I may present to you a video of my favorite Capitalist economist, Milton Friedman:

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