Capitalism

I am a capitalist. I support free-markets as the best way to manage the economy. So what? I have been reading some scary things in the news lately coming from socialists and those who believe government can best manage the economy. Let me begin.

Riots

The story begins in Paris. Two weeks ago, two boys were electrocuted in a Paris suburb. Since then, there have been constant riots in the Parisian suburbs and they have spread throughout the country. Why would the death of these two boys spark such chaos? I believe it has a great deal to do with economics. Joel Kotkin, writing for the Wall Street Journal, provides the evidence for this argument. France's socialism, and Europe's in general, is strangling its immigrants. In the suburbs where these riots are occuring, the homes of a large portion of France's immigrants, unemployment looms around 40%. No wonder they are rioting. Though they are only hurting their cause, they are a frustrated people who have found no help from a prejudiced and selfish nation.

Multilateralism?

The next danger has to do with the medium through which I am communicating. Perhaps the greatest miracle of communication, the internet, faces a danger that threatens to destroy its vitality and openness. There has been a proposal made for the UN to govern the internet. This is dangerous. I support Mr. Coleman's view in this editorial that giving control of this powerful tool to an organization which is being heavliy influenced by those who stand to lose from a free internet is a stupid idea.

The argument is that the internet is influenced too heavliy by the US. I would have to agree that it is heavily influenced by the US, but that is changing and will continue to change as the internet grows. Currently, the US government has little control over the internet. The majority of the internet is controled by private firms. This means that private firms from anywhere can have a say in governing the internet.

Is this happening? Not yet. A communications tool that grew to maturity in a country will be heavily influenced by that country and the companies that fostered this growth. As the internet spreads, however, companies in other countries are and will continue to enter the markets that shape the internet, giving the international community a say in how it works.

Handing the internet over to a bureau is asking for politicization of the internet. If it happens, we will probably watch the internet become a tool for the various governments as they regulate out what they don't like and regulate in the propaganda that support their actions.

The Heir Apparant

We may never be rid of the lies of communism. Just as China begins opening up to capitalism and as we wait for Castro to die, Castro's ideological heir rises up in Venezuela. Hugo Chavez supports the same communist lies that caused the economic ruin of Soviet Russia, China, North Korea, and virtually every country that has tried it before. He is tearing his country apart, destroying the only hope it has for economic progress. Yet his people believe in him. Why? For the same reason they follow any revolutionary demagogue: he provides new and different lies. There is hope in his words. Capitalism, for whatever reason, hasn't worked in South America. Rather than propose solutions, Chavez is successfully diverting the people's anger towards the wealthy and successful. Rather than encourage them to work hard and publicly discuss solutions to Venezuela's and South America's woes, he offers a seemingly quick and easy path to prosperity. Just as for anything worthwhile, there is no quick and easy way. Economic progress, except for notable exceptions, is slow and steady. As Chavez diverts his people's attention from markets and working to achieve prosperity, he will drive the economy into the ground. Look forward to yet another starving and struggling country.

The Answer

I do not believe markets hold all the solutions. Markets can be just as dangerous and devestating to people as the government. And the government is needed to make up for the market-system's shortcomings. But in all these cases, people want to rely heavily on the government. This strategy will not succeed. The combination of the market and a limited government, as the US and other market driven economies have substantially proven, brings economic growth and prosperity. It leads to efficiency and innovation such as the internet. Turning towards government places your freedom to act in the hands of fallible human beings. Be wary of the government and the attempts around the globe to extend its powers. I support capitalism and my freedom to choose how my life will be. I have no desire to place that power in the hands of a government.