capitalism

Consider the radical transformation in the last 300 years. And capitalism’s role therein.

Here’s the formula: compare life for the typical person today to 30, 100, 300 years ago. The things we take for granted to today would have been an unimaginable blessing back then. I get a kick out of that story line every time I see it.

The latest in a long line of examples is from Don Boudreaux at Cafe Hayek:  Capitalism: The Greatest Engine of Equality. He ponders what a man from 1700 would think of a visit to Bill Gates. Just about every one of the astounding things observed by the visitor from 1700 is also available to almost every person living in the U.S.

(Cross-post from my other blog, Outrun Change.)

The driving force behind all of this?

Capitalism.

And property rights.

And a functional legal system.

And a functional democracy.

Read the full article. A few things that would have been beyond the wildest dream 300 years ago: (more…)

By Jim Ulvog, ago

What strange, mysterious, magical force is loose that increased US production of both oil and gas by one-third in six years?

Is it targeted federal subsidies?  Breakthrough law from the Congress?  Socialist industrial policy?  Keynesian monetary policy?  Blockbuster documentary from Hollywood that changed minds across the country?  More support for college loans? A landmark special on network TV? Quantitative Easing?

No. It’s none of those things.

Barron’s is pondering the question as well:  The Secret of U.S. Energy Success.

Federal subsidies have produced a substantial increase in some things. The editorial provides a partial list. Subsidies have given us…

..our national surpluses of grain, milk, unemployment, nonprofit companies, disabilities, and mortgage debt.

Those subsidies didn’t produce the massive increase in oil production in Bakken and Eagle Ford.

The best paragraph from the editorial: (more…)

By Jim Ulvog, ago

Is it moral for an economic system to make life better for billions of people?

The answer is yes, according to Walter Williams, who says Profit Has Improved The Human Condition.

Of course, he explains when compared to heaven or a utopia where unicorns romp freely and all the food you want magically appears on your table every day, capitalism falls short. When compared to every other economic system on earth, it does wonders.

Apart from billions of people being lifted out of grinding poverty, let’s examine other changes relatively recent in our human history, like how it becomes possible to gather wealth. Mr. Williams says: (more…)

By Jim Ulvog, ago

Graph to illustrate Thatcher’s comment that socialists want the poor poorer provided the rich were less rich – Part 2

Previously mentioned a graph that illustrates the idea that socialists

would rather the poor were poorer provided the rich were less rich.

Here is a revised graph:

inequality graph 2

This is a much busier graph. Like the earlier graph, it is from Dave Poling and is used with his permission. Here are a thousand words to describe his graph.

It shows the same relationships –

In a generation, the poor become as well off as the middle were a generation earlier. The middle gains a lot and is as well off as the rich a generation earlier. And yes, the rich become really rich.

Under socialism, the rich, middle, and poor all get worse off.

An addition to this graph is the government and cronies. I call the latter group the crony capitalists, those companies and individuals who make their business thrive by lobbying the government and getting special treatment. They do quite nicely under socialism, thank you very much.

Since there is so much going on here, let’s look at the graphs in more detail.

(more…)

By Jim Ulvog, ago

Graph to illustrate Thatcher’s comment that socialists want the poor poorer provided the rich were less rich – Part 1

Here is a graph to illustrate previously mentioned  statement from Margaret Thatcher that socialists

would rather the poor were poorer provided the rich were less rich.

Check this out:

 inequality graph 1

That chart is used with permission from Dave Poling.

Since a picture is worth a thousand words, the graph stands on its own. So here are 400 words to explain the one picture.

(more…)

By Jim Ulvog, ago

Happy Thanksgiving! – “The true patron of this holiday feast – property rights”

The story of how the Pilgrims went from starving to plenty that I didn’t hear in school. In William Bradford’s own words: [youtube=http://www.youtube.com/watch?feature=player_embedded&v=66QdQErc8JQ#t=135] The video title is The Pilgrims and Property Rights: How our ancestors got fat & happy. Communal property was not acceptable to the married menfolk or the Read more…

By Jim Ulvog, ago