“The essential nature of capitalism is social harmony through the pursuit of self-interest. Under capitalism, the individual’s pursuit of her/his own economic self-interest simultaneously benefits the economic self-interests of all others…

…In allowing each individual to act unhampered by government regulations, capitalism causes wealth to be created in the most efficient manner possible which ultimately raises the standard of living, increases the economic opportunities, and makes available an ever growing supply of products for everyone…Contrary to the widely held beliefs, capitalism is not a system which exploits a large portion of society for the sake of a small minority of wealthy capitalists. Ironically, it is actually socialism that causes systematic exploitation of labor. Since the socialist state holds a universal monopoly on labor and production, no economic incentive exists for the socialist state to provide more than minimum physical subsistence for the workers except to perhaps prevent riots or revolutions (Mike Perry comment: “Just look at Venezuela or Cuba.”) Exploitation is inherent to the nature of socialism because individuals cannot live for their own sake, rather, they exist merely as a means to whatever ends the socialist rulers…the self-proclaimed spokesman of “society,” may have in mind…All non-capitalistic societies force some women and men to live at the expense of others. Whether you are forced to live, in part or in whole, for the sake of God (as in a theocracy), “the underprivileged” (as in the welfare state), or the latest sadist in power (as in a dictatorship) does not matter, it is only the fact that some individuals are violating the freedom of others, not the method by which they do it, that matters…In fact, capitalism is the complete embodiment of social justice. In social or political context justice means that every person gets no more, and no less, than what she/he gains through the voluntary association with other women/men. A capitalist society is a just society because all individuals are considered equal under the law…In a more fundamental sense, a capitalist is anyone (from a janitor to a millionaire) who lives solely by her/his own effort and who respects the rights of others…An absolute democracy, which means unlimited majority rule, is incompatible with capitalism and freedom. This is so because capitalism rests on the principle of individual rights. In an absolute democracy, rights would really have no legitimate meaning because they could always be voted away in the next election. Individual rights must be consistently upheld if capitalism is to be achieved, and if the majority may do whatever it wants regardless of the rights of the minority, capitalism cannot exist, not even in principle. When most people think of “democracy” they usually mean a constitutionally limited democracy. In a proper capitalist nation, a constitution based on individual rights would be necessary to limit the actions of its citizens and the government. Under capitalism, the majority would never be able to vote to violate the rights of the minority, no matter how large the majority and how small the minority. Individual rights would not be subject to vote…Statism is the opposite of capitalism. Statism is the concentration of power in the state at the expense of individual freedom. Capitalism is the only system which protects individuals rights and freedom, but the variety of political systems which violate individual freedom are numerous: socialism, communism, fascism, Nazism, absolute monarchies, military dictatorships, theocracies, or the welfare state are all systems which infringe upon individual rights, which means they institutionalize the initiation of force against their citizens…It must be recognized that there are only two fundamental political philosophies: those who are for freedom and individual rights and those who are against them…Socialism holds that man is not an end in himself, and that he must sacrifice his own convictions for the sake of the “greater good” of the collective. Socialism requires the sacrifice of the individual mind, and hence denies the sole means of survival of man and in fact his very nature as a rational being. Such a system cannot honestly be held as an ideal.”, George Reisman, “Classical Economics Versus the Exploitation Theory”, pp. 17-18

Posted on September 8, 2015, in Postings. Bookmark the permalink. Leave a comment.

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