Capitalism is Best for Reducing Grinding Poverty

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As renowned economist Milton Friedman stated regarding Capitalism, “The only cases in which the masses have escaped from grinding poverty are where they have capitalism and largely free trade.” “The great achievements of civilization have not come from government bureaus.”

As the Economist Magazine has reported, “nearly 1 billion people have been taken out of extreme poverty in twenty years – for capitalism and free trade enable economies to grow.”

In America, the poverty level is deemed to be earnings of $63 a day for a family of four, whereas in true poverty-stricken countries, earnings are only $1.25 per day.

Socialism by comparison is, as stated by Winston Churchill, “a philosophy of failure, the creed of ignorance, and the gospel of envy – its inherent virtue is the equal sharing of misery.”

Making villains, as our President does, and describing as greedy those who provide non-government private sector jobs through Capitalism, is dangerous. When government provides all jobs and exerts all control over its citizens, there is little reason for one person to work harder than anyone else.

We must keep in mind that as has been stated by some, including Gerald Ford, “A government big enough to give you everything you want is a government big enough to take away everything that you have.”

“Productive activity unleashed by a free enterprise system” is what made America great, and allows us to donate billions of dollars to less fortunate countries each year; to provide a safety net to those Americans who cannot make it on their own. It encourages entrepreneurs to put their money at risk to create new machines, drugs and medical procedures, movies, restaurants, stores, and companies; and to fill our needs as well as our desires.

Entrepreneurs know that if they are not successful, if they don’t work hard enough, if they have a bad idea, or if they can’t find good workers to make their companies successful, they will lose every bit of money they put into their project.

Therefore they are willing to pay what they must to get the kind of skilled workers they require.  They compete in the marketplace for the best talent.  As the saying goes, “I’ve never been given a job by a poor man.”

When entrepreneurs are successful, providing jobs to tens or thousands of people, they will and should be rewarded for their risk-taking.  It is these workers who can now spend their money and who will pay taxes to keep the economy and our government going.

The more any government encourages making people dependent on government for survival, the more the work ethic deteriorates.  When this number reaches over 50% (it’s over 40% in America now), there will be a majority of voters demanding more from the producers of wealth in America.

In the end, this backfires, for when government takes ever more in taxes from companies and people, the company can move to a more tax-friendly state or country.  When doctors, for instance, are reimbursed at levels which don’t keep up with expenditures, doctors retire early or stop seeing Medicare and Medicaid patients.  When the risk/reward ratio is upset, and the sacrifices made are discounted, capitalists quit producing and the population as a whole suffers.

Until we have a true Dictatorship, President Obama cannot yet force Americans to work- the rich or the poor.  But government policies can and do enable “folks” to have their hands out for government care.  There are many families which for generations choose to live on Welfare and other government largess instead of bothering to work.

Recent statistics show that Welfare pays more than minimum wage work in 35 states.  It is so much easier than working.

As Margaret Thatcher once noted, “The trouble with Socialism is that sooner or later you run out of other people’s money.


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