Monday, June 3, 2013

Democracy Is Voting Capitalism Out of Business

Capitalism plays to the people who want to make money and who will take a risk to do it. It's been said that the difference between rich and poor: The poor use money as a means to buy comfort, security and entertainment. The rich use money to buy education and as a tool to create wealth.

IMHO, capitalism works with people who want to be rewarded for pushing the edge of creating wealth (such as by creating products and services, or creating companies to deliver products and services). Capitalism does not work well for those who want someone else to take care of them.

It's been said that there are three ways to control people: force, religion and debt. Our government has evolved such that all are in debt to our government through taxation. We have become debt-slaves.

The USA does not own its own money system. All our money is borrowed into existence and must be paid back with interest as part of the national debt. In the USA, we borrow our own money to pay for our own debt that we created by borrowing our own money (does this sound kind of stupid?). I called the US Treasury Department, and they verified that paying down our national debt actually destroys the money supply we need to run the economy.

I would say that today, it's not so much that capitalism is failing as it is that democracy is voting capitalism out of business. There are many variations on the quote, "A democracy can only exist until the voters discover that they can vote themselves money from the public treasury." As more people vote for the government to take care of them, the government has to raise and expand taxes. ( The banking system has not allowed our government to print its own money since it phased out Abraham Lincoln's debt-free "greenbacks" ). Higher taxes rob businesses of the money they need to stay in business and create jobs.

It's been said that the people who vote for a living now outnumber the people who work for a living. Some quote the US Census as saying 49.1% of the US population lives in a household where at least one member is receiving government benefits.

I find capitalism to be inspiring, competitive and valiant. When the true capitalist wins against all odds, he is able to enjoy the profits of his own labor and contribute to the support and jobs for the rest of us. When he loses, he understands that either he will have to rise back up by his own efforts, or get trampled underfoot because there is nobody to rescue him. Unfortunately, it looks like true capitalists are an endangered species.