In Defense of Capitalism

I hate to tell the Occupy Wall Street group (OWS) this, but not only do they not understand capitalism, they aren’t even the trendsetters of anti-capitalism. For years, American culture and tax policy has been at odds with the values of capitalism. It’s a pity, but it’s true and one can trace the majority of our current economic problems to that fact.

Wall Street, 1867
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The basis of capitalism is self-denial; the intentional delay of gratification for the chance of a greater reward later. If you think this is still the core of our country’s values, then you haven’t been paying attention.

In order to generate capital, individuals have to consume fewer resources than they have available, meaning that they save rather than consume. Then those individuals must be willing to risk those savings to acquire the tools necessary to provide desired goods. If the individuals make poor decisions, or as our Commander-in-Chief calls them “bets”, then they will lose their investments. This means that their sacrifices were in vain, except for some new knowledge of what fails.

Capitalism is what people do when left alone. Anything other than capitalism is because of a government that restricts what people freely do. Even simple barter requires a saving of resources and an investment to obtain other goods. Simple farming was also capitalism long before tractors and center-pivot irrigation systems. Early farmers sacrificed the consumption of seeds in order to invest them in next year’s crop.

Is capitalism good? It rewards innovation and efficiency. It creates job opportunities and allows families to

My Advice? Slow Down

Slow down; you move too fast.
You got to make the morning last; just
Kickin’ down the cobblestones;
Lookin’ for fun and feelin’ groovy.
          - 59^th Street Bridge Song – Music and Lyrics by Paul Simon

What is the rush? We’re in the beginning stages of selecting who will be the next President of the United States. This is an important decision that will have consequences far beyond the next four-year term of the leader of the free world. So, again, what is the hurry?

Are you states that want to move your presidential preference primaries up to next week paying attention? Probably not. Yes, we all want our state primaries to matter, but if you love this country you will not turn a marathon into a blind sprint. If we’re going to do something that stupid, let’s save some money and just cut cards.

Governor Perry and the Great Economics Debate

Last night’s debate on Bloomberg TV focused on the US economy. This was a good choice by debate sponsors, because the American people are focused on the economy out of self-defense. The abject failure of President Obama and his gaggle of academic charlatans and Wall Street Wonderboys to grasp even the basics of business, is no surprise to economic conservatives. If one is overly kind, one could call the state of our current economy “iffy”. For that reason alone, people are ready to hear Republican ideas to repair the economy.

The debate was an opportunity for Republican presidential candidates to discuss their thoughts on the economy in more detail than other formats have allowed. Many of them, including Herman Cain, Newt Gingrich and Mitt Romney made good use of the format. Others did not do as well.

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Texas Governor Rick Perry didn’t lose the economics debate last night, but it may eventually cost him the nomination anyway. Perry needed a reversal in direction for his campaign and his lackluster performance did not do that. He will continue to slide in the polls because he gave no reason for the slide to stop.

Perry is right, of course, on his statements about the necessity to utilize our natural resources to save the economy. He mentioned it several times but never ventured beyond the painfully obvious. Simply put, Perry never connected the dots. There was no analysis; no linking of job production outside of the energy sector; and most importantly to his campaign, no burning reason why voters should stick with the Perry bandwagon.

Perry could have easily pointed out that we need relatively inexpensive energy to increase production of both goods and jobs. Less expensive goods - and lower transportation costs - means more exports in all sectors, which means more jobs. Less expensive products are more affordable to America’s middle class. Common

Fear of a Tea Party Planet

- Why the Democratic National Committee wants to co-opt the Occupy Wall Street Protesters -

Why would former US House Speaker and legislative airhead Nancy Pelosi go out of her way to embrace the Occupy Wall Street (OWS) protesters? Why would civil rights movement icon John Lewis attempt to address the OWS group in Atlanta’s Woodruff Park? Why would President Obama praise these groups even after hundreds were arrested in New York City?

Tea Party Rally in Washington, DC
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These are legitimate questions because of the significant political risks undertaken by these nationally known Democrats. They risk their personal reputations, if not their re-election chances, to mingle their fortunes with an little known group of protesters. They are also placing their party’s lower tier candidates at greater risk with this affiliation. Generally a high risk should have an opportunity to generate high rewards, and this is the case. Democrats are playing high stakes poker to counter the Tea Party.

Publicly, Democrats deny that the Tea Party had any effect on the 2010 elections and will soon disappear. No one really believes Democrats are that stupid and recalcitrant regarding reality. Having failed to destroy the Tea Party movement, though slandering it so that the movement’s popularity has decreased, the Democrats want a left-wing movement to counter the Tea Party.