In the introduction to this series, we discussed the bit of the history leading us to the outcry against capitalism. As I concluded:
“The important point is that ‘capitalism’ isn’t broken, but there is one aspect of the system which has morphed into something no one intended. As you hear candidates promising to ‘eat the rich,’ remember ‘political narratives’ designed to win votes is not always representative of what is best for you in the long run.”
In every economy, throughout history, there have always been those individuals who aspire to wealth and privilege and those that beg on street corners for scraps. The battle between “haves” and “have nots” has been going on since men lived in caves.
“Did you see Ugg’s new cave? He’s got a T-Rex floor covering by the fire pit.”
Likewise, throughout history, there have also been the subsequent revolts where the oppressed have stormed the castle walls with “pitchforks and torches” to change the balance of inequity. Unfortunately, those changes only lasted for a little while. Eventually, the system imbalances always return due to our basic human nature:
Aspiration (the will to take risks, determination, and drive),
Education, and socio-economic factors (access to capital, connections, etc.), and;
However, it is our human nature of greed and competition, which lifts individuals out of poverty. Inequality should not be viewed as a negative, but rather as a driver of prosperity and innovation. As Daniel LaCalle recently wrote in his new book “Freedom, Equality, & Prosperity Through Capitalism:”
“By contrast, the U.S. has historically been a clear example of positive inequality. ‘Mimic inequality’—where you want to do your best and make it seem to others that ‘you’ve made it’–is a positive force. That’s what we all call The American Dream. The reason why millions emigrate to the U.S. is the promise of equal opportunity, not equality. Very few ever emigrate to socialist countries. In fact, governments in those regimes spend large sums of money trying to prevent their citizens from escaping”
This is a vastly important statement. We should be seeking to foster is equal opportunity, not wealth equality.
Fortunately, the United States is rich with opportunity. All you have to do is take advantage of it.
Myth: The System Is Unfair, You Have To Be Rich To Start With
Jeff Bezos, the creator of the world’s largest online retailer and one of the richest men in the world, took advantage of capitalism. Now he has become villainized for it.
What did he have that allowed him to generate billions in personal wealth that others didn’t?
He had an idea. (We all...