Tags: Coronavirus | Financial Markets | Health Topics | economic | inequality | roth | schwab

The Fastest Way to Break Capitalism Is to Fix It

The Fastest Way to Break Capitalism Is to Fix It


By Monday, 26 October 2020 02:05 PM Current | Bio | Archive

Why do people always insist upon fixing things that aren’t broken?

German engineer and economist Klaus Schwab wants to tinker with something that has created a bustling economy and unprecedented personal wealth.

In an essay published in Time magazine, he believes "A Better Economy Is Possible. But We Need to Reimagine Capitalism to Do It."

Schwab says reimagining capitalism is necessary because everything was set on its head by the global coronavirus pandemic.

"It shouldn’t have come as a surprise that many started to wonder: Will governments, businesses and other influential stakeholders truly change their ways for the better after this, or will we go back to business as usual?"

Schwab, who founded the Switzerland-based World Economic Forum, asked.

"Looking at the news headlines about layoffs, bankruptcies and the many mistakes made in the emergency response to this crisis, anyone may have been inclined to give a pessimistic answer."

What Schwab chooses to ignore is that the widespread layoffs and bankruptcies he decries aren’t the result of the pandemic.

They’re the result of the government’s reaction to the pandemic.

They’re the direct consequence of the government arbitrarily defining one business as essential and another non-essential.

It’s also making arbitrary decisions about how businesses should be run, such as capacity limits in bars, restaurants and gyms — decisions best made by the business owner — those with actual skin in the game and who know the risks.

Then Schwab addressed what he believes is capitalism’s real problem — its lack of social justice.

"Technological advances often take place in a monopolized economy and are used to prioritize one company’s profits over societal progress," he said. "The same economic system that created so much prosperity in the golden age of American capitalism in the 1950s and 1960s is now creating inequality and climate change."

What he ignores is that America’s mid-20th century prosperity was actually recreated during the first three years of the Trump administration, and the prosperity had the exact opposite effect of creating inequality.

Income among Blacks and Latinos reached alltime highs.

Overall unemployment was at its lowest level in 50 years, and the lower and middle class experienced the largest gains. In short, it reduced income disparity.

This was achieved, in large part, by severely stripping away crippling regulations — the very mechanisms government uses to "control" capitalism and "make it better."

As for "climate change," the climate is always changing.

Wooly mammoths and saber-tooth tigers died out at the end of the last great Ice Age, because they couldn’t adapt to the changing conditions.

Humans could and survived.

Furthermore, the effect that human activity has on climate change is not yet settled, despite anything Al Gore has to say.

Finally, since withdrawing from the Paris Climate Accord, the United States has actually reduced its overall carbon footprint.

As Chicago-based entrepreneur and TV personality Carol Roth observes, in order for capitalism to work, the government must protect essential freedoms — not limit them.

"Capitalism is resource allocation via freedom and choice, supported by protection of property rights. There is no re-imagining that," said Roth, host of  "The Roth Effect."

"What we need is the Govt to stop interfering in the free markets and have everyone wrongly label that 'capitalism'."

Renewable energy will one day be an affordable option — but not because Biden orders it by the year 2025. It will no doubt happen by an energy giant like ExxonMobil or ConocoPhillips developing it as a replacement to dwindling fossil fuel reserves.

The former vice president accused President Trump at Thursday’s debate of saying the pandemic "is all going to be over soon."

Trump had to correct him.

"I did not say over soon. I say we're learning to live with it. We have no choice. We can't lock ourselves up in a basement like Joe does," Trump said.

"People can’t do that."

And that’s what it comes down to. We have to get back to work.

"Nonessential businesses" don’t exist. All business is necessary.

The health of the economy depends upon our getting back to work; the health of the people depends upon it; ultimately the health of the nation depends upon it.

Capitalism only works when we allow it to work. It doesn’t have to be reimagined; it has to be allowed to breathe in a free society.

Free market champions like Trump and Roth understand that; Biden and Schwab don’t.

Michael Dorstewitz is a retired lawyer and has been a frequent contributor to BizPac Review and Liberty Unyielding. He is also a former U.S. Merchant Marine officer and an enthusiastic Second Amendment supporter, who can often be found honing his skills at the range. Read Michael Dorstewitz's Reports More Here.

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Capitalism only works when we allow it to work. It doesn’t have to be reimagined; it has to be allowed to breathe in a free society. Free market champions like Trump understand that.
economic, inequality, roth, schwab
Monday, 26 October 2020 02:05 PM
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