Our Government produces nothing, they create nothing, they have no ability to manage anything, they are simply a distribution system that takes from one element in society and gives to another as well as themselves in the process. Putting more of our economy in their control is simply irrational because it will just subject it to more waste, fraud and corruption. For all the times that our society states that capitalism has failed us, we should take a good hard look for how much of that failure was at the hands of our Government. Capitalism is just an economic system, a system that is based on freedom and choices, it is not centrally controlled thus the freedom of decisions is reserved for the people. With that said, it should also have rules of behavior established and subsequently enforced, and it is here that our Government fails us at every turn. Think of it like watching a football game, nobody wants to see a game without rules or officiating, but they do expect the game to be played freely within the established structure of rules with no excessive intrusion aside from normal enforcement, our economy should be handled in the same manner. It should have the freedom of choice provided by capitalism within an established framework provided by a responsible Government. However, corruption has grown to the point that this “rulemaking and officiating” responsibility is done according to what favor is being repaid or how it benefits them personally. The Government is more interested in paying off cronies or buying favor from interest groups to retain power than they are of serving the nation’s interest. There have been many laws and regulations introduced on the books, but they become worthless if selectively enforced. For all the suffering brought about by this economic downturn, there are certainly laws and/or regulations that would have prevented the calamity, but they were ignored for some political convenience even if detrimental to the overall system. Seriously flawed legislation is constantly being passed that caters to politically connected entities, and expedience is surely its origination. There is no economic system in this world that can survive incessant political corruption, and capitalism is no different, but in the absence of this repulsive conduct it has the best chance for providing the greatest amount of prosperity and freedom to a nation.

Another thought that comes to mind is if we truly believed that capitalism is unsound and responsible for this economic tragedy, what will then explain the failures going forward now that the Government has further exerted its intrusive bureaucracy? Any future devastation will not be unleashed by capitalism as it should become obvious that there is a much greater vehicle of destruction undermining us, that being our corrupt Government. As expected, it is rising to the occasion with wasteful stimulus programs, a crushing national debt, rising unemployment, decreased tax revenues, subsidizing failure, withering real estate values etc. These ruinous outcomes are resulting from Government failures, and they are likely to continue as the same agendas are being pursued unabated in the customary tradition of corruption. The irony presented in all this is that only capitalism can solve these enormous issues of our time, but it requires the foundation of a Government with integrity and devoid of corruption.

Free market capitalism has in no way failed; it is still the preeminent economic system that provides the highest standard of living for everyone which explains why so many other nations are increasingly applying its practices. The failure being experienced is our nation’s lack of appetite for the ramifications of the capitalistic model. Unfortunately, it periodically requires a downturn or recession in order to consolidate and strengthen winning businesses while simultaneously purging the substandard ones. This is the often-touted creative destruction process and it is essential to allow the best to proceed forward. Our society has become intolerant to the process of failure particularly when large organizations are concerned thus giving rise to the “too big to fail” concept. We instead have accepted the Government’s intervention of propping up failed institutions rather than allowing for the clearing process of failure to occur. Capitalism will eliminate the inefficient and reward the successful without any hesitation through an effective market mechanism, and any intervention of that process only distorts and lengthens the suffering involved. It is this type of intrusion that historically turns recessions into depressions. We are currently experiencing a purging process and it is left to be seen what the outcome will be from our Government spending trillions of dollars in a futile attempt to circumvent this reality. The true market will prevail in the end despite intentions otherwise, for it is only a matter of when and how much damage will be created by obstructing the recognition of this basic truth. Capitalism is indeed alive and well when it is allowed to function freely, and it will bring the fastest and most economical solutions to society despite any associated distress from its often swift execution. For our Government to proclaim that capitalism has failed is akin to thinking that the weather has failed because it is raining, but we should in fact know it is both necessary and constructive. The role of allocating resources can not and will not ever be accomplished efficiently by politicians spending our money attempting to pick winners and losers for our alleged wellbeing, only capitalism can accomplish that.