capitalism

Moral Foundations of Capitalism – Margaret Thatcher’s explanation

Capitalism is based on morality.

It is not based on self-centered greed. Quite the opposite. It is based on serving others.

Capitalism rewards people who serve others and meet their needs. Only after meeting someone else’s needs does the provider get a reward.

In 1995, Margaret Thatcher, Former Prime Minister of Great Britain expounded on The Moral Foundations of Society.

A few of many topics she covered in that speech were the moral foundation of democracy, law, and the founding of the U.S.

Let’s see what she said about Capitalism.  Following quotes are reprinted by permission from Imprimis, a publication of Hillsdale College:

The Moral Foundations of Capitalism

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By Jim Ulvog, ago

Thatcher: Socialists would rather have the poor poorer provided the rich were less rich

Margaret Thatcher passed away today.

In 1990 she gave this great explanation of the difference between capitalists and socialists while being questioned in the Commons.

[youtube=http://www.youtube.com/watch?feature=player_embedded&v=rv5t6rC6yvg]

An obvious socialist asked how she could defend policies that resulted in the gap between richest 10% and poorest 10% widening substantially. The poor were relatively less better off than the rich. How could she justify that?

Her devastating response: (more…)

By Jim Ulvog, ago

Capitalism is based on morality

It seems as I try to explain why freedom is moral, I find the issues and explanations go deeper than I realized. Don’t quite know when I came to the conclusion that freedom is the moral option – it seems I’ve always believed that.

In The Moral Case for Capitalism: More than Utility, Jacqueline Otto explains that capitalism and morality go hand-in-hand:

Capitalism is designed to marry a man’s moral and material growth, so that both can be fully mature. (more…)

By Jim Ulvog, ago

Profits are moral

“Profits earned honestly in the market are moral. They arise from morality and they reinforce morality.”

Providing goods or services that other people value and are willing to pay for is moral. Check out this video for a deeper explanation.

The Morality of Profit:

 [youtube=http://www.youtube.com/watch?v=SnHQammdwGQ&feature=player_embedded]

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By Jim Ulvog, ago

Capitalism creates value for customers, vendors, and employees

Capitalism involves voluntary exchanges.

Vendors don’t have to supply a company.

Employees don’t have to work for a particular store.

Customers don’t have to shop there.

Each of those people do so because it provides value to them. The business in turn creates value for everybody it deals with, not just investors.

From the book Morality of Capitalism, available free from Students for Liberty here , here is one of many great comments from John Mackey, co-founder of Whole Foods:

Putting it generally, successful businesses create value. (more…)

By Jim Ulvog, ago

Want to improve the lives of people at the bottom? Then provide economic freedom.

 “My family and I have succeeded by following the path to freedom. But that path is on the verge of vanishing. What we’re starting to see here in America now is a growth in the size and the scope of government that is now starting to look like the governments that we left behind.”

Here is how to lift people up the economic ladder:

Advancing economic freedom is the best way to improve human well-being, especially those at the bottom.

That’s the path to moving out of poverty and economic success. Check out this video from LIBRE Initiative:

[youtube=http://www.youtube.com/watch?v=yNHywGefNnQ&feature=player_embedded]

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By Jim Ulvog, ago

Government protected monopolies and subsidies hinder progress – Were the so-called Robber Barrons actually anti-monopolists?

I’m slowly catching the idea that there is far more good news about Robber Barrons than conventional wisdom allows. Most of what I recall from school was criticism of those horrible, terrible, disgustingly evil men who used poor children as a breakfast garnish and then roasted their parents for dinner-time appetizers. They assuaged their horrendous guilt by building a couple of public libraries or something with a few spare bucks they couldn’t use up on conspicuous consumption.  That’s a mild exaggeration of what I recall the books were saying.

Actually, I’m beginning to realize we owe much of our prosperity and economic capacity to those men.

T. Kurt Jaros has a nice series on Cornelius Vanderbilt. The Men Who Built America: Cornelius Vanderbilt is the introduction.

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By Jim Ulvog, ago

Here’s a picture of life without evil capitalism – you may not like what you see

What would life be like without those greedy, evil, money-grubbing capitalists trying to make a buck off consumers? Maybe an Edenic paradise flowing with economic equality and abundant consumer products for everyone?

Not quite.

Check out this view of life without the profit motive, meaning no one has an incentive to provide you with anything.  The video is a play on the movie It’s a Wonderful Life, wherein George Bailey gets to see what the world would be like without him. In this movie, our hero gets to see what’s left over when the profit motive disappears.

[youtube=http://www.youtube.com/watch?v=bwH3Xr6uyG0&feature=player_embedded]

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By Jim Ulvog, ago