Posted by
voice_of_reason on Tuesday, May 29, 2007 12:27:47 AM
Capitalism IS self-limiting -- but only in a MIXED economy.
It is also limited when people take for granted that the affluence it produces (the effect) will magically survive all attempts to subvert capitalism (the cause).
Capitalism flourishes when there is the absence of Govt interference. In fact, if there is no enforced collective action, if you leave people alone, the result will be an evolving form of Capitalism! Therefore, Capitalism can be seen as the logical extension of personal freedom - in the economic arena. Unfortunately, it is that absence of interference that is encroached upon in all modern-day Capitalist countries, leading to the prevailing mixture.
With mostly good intentions, many of which lend themselves to good sound bites (e.g. "a chicken in every pot .."), we undermine the cause of Capitalism, while expecting it's effects to continue forever.
Of course, Capitalism is no panacea - it does not promise a successful outcome for everyone. There are those who complain that it is too harsh, and would create a gritty, unpleasant reality. The results, however, indicate that it is socialism, the antithesis of capitalism, that perpetuates dependence and poverty. Witness the gritty reality of countries such as North Korea and Cuba. What Capitalism does better than any othe system is to ensure the best utilization of scarce resources.
If affluence is de-linked from freedom (and Capitalism) by the citizens of a prosperous, capitalist country, they tend to opt for an ever increasing welfare state.
The question that we should ask ourselves is "Why do so many Americans (who benefit everyday from the affluence of Capitalism) fail to understand the causal relationship involved?"
My answer (and not a very popular one in this forum): we carry the germ of socialism in the form of our Judeo-Christian moral code that celebrates sacrifice. While embracing the positive contributions of America's Judeo-Christian code, we should also be aware that the factors that limit our implementation of Capitalism are also borne by the same religious code.