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.

Many prominent figures in our history had an obvious distrust for Government, in fact, our Founders wrote the Constitution with the thought in mind to bind the hands of Government. Any person that understands the true nature of Government will realize it is an extremely blunt instrument, so any public solutions should be taken with extreme caution to minimize the destruction that will certainly be unleashed. This is a concept understood and illustrated with these few selected quotes by the men that held the highest office within our Government.

Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master.
-George Washington

Experience hath shewn, that even under the best forms of Government those entrusted with power have, in time, and by slow operations, perverted it into tyranny.
-Thomas Jefferson

I predict future happiness for Americans if they can prevent the Government from wasting the labors of the people under the pretense of taking care of them.
-Thomas Jefferson

Where an excess of power prevails, property of no sort is duly respected. No man is safe in his opinions, his person, his faculties, or his possessions.
-James Madison

The essence of Government is power; and power, lodged as it must be in human hands, will ever be liable to abuse.
-James Madison

I have accepted a seat in the House of Representatives, and thereby have consented to my own ruin, to your ruin, and to the ruin of our children. I give you this warning that you may prepare your mind for your fate.
-John Adams

A Government big enough to give you everything you want is a Government big enough to take from you everything you have.
-Gerald R. Ford

The most terrifying words in the English language are: I’m from the Government and I’m here to help.
-Ronald Reagan

How many of these quotes sound relevant to the Government we are witnessing today? With beliefs such as these from former Presidents, we should give some serious thought about why we believe Government can be relied upon to offer solutions to us as citizens; they have a terrible history of solving issues and a long history of creating them. If these men held such an obvious distrust in the Government’s nature and its abilities speaking from their executive positions, then why should we place our faith in this institution? All we have to do is seek the council of our own history to clearly see that this is indeed a foolish path to travel. America became a great nation because its Government minimized its own intrusion thereby allowing its individual citizens to prosper. Unfortunately, that is not the case anymore with our invasive Government that is emboldened by public apathy which will undoubtedly have the opposite effect. As this continues to unfold, it will ensure that the race to the bottom is proceeding as warranted.

Business is not an altruistic entity that exists solely for the employment of people with total disregard for the risk investors assume. It does not even make it to the planning stages without someone willing to risk their money on the endeavor. In essence, there is an implicit contract established that labor will offer their services and investors will offer their capital and if profits are attained then both parties may continue such pursuit. There are a lot of things that have to be done right in operating a business before it can earn a profit and it is here that the true value is represented. It requires a product to be produced that the public will buy in sufficient quantity to maximize the revenues into the company, and all aspects of that product must be planned and managed. It also requires that the entire operation of the company must be applied efficiently to contain the cost for the revenue that is generated. In short, profit is a number that captures the effectiveness of employing people and resources to produce a product by focusing all aspects of operations into a measurable goal that either justifies its existence or not. Making statements proclaiming that now is not the time for profits is dead wrong because it is always the right time for profits since that is what keeps business sharp and focused hence making it as efficient and competitive as possible.

It is the profit motive that differentiates private industry from the Government, and it is the reason why private industry is so much more productive and efficient. The Government does not care about such things as revenues or costs, making a payroll, or any other component of profitability. They simply do whatever they desire and the cost is just something that is the taxpayer’s problem. They have no appreciation for optimizing all the various functions that must happen to produce a profit. It is easy for our Government to tell business to ignore profits because that is the simple world in which they reside. Selling their distorted judgment to the public is all too easy by simply tagging it with the image of greediness. However, as one can see it entails much more than that, it is both necessary and important in the business community to ensure the competitiveness of their companies around the world. We should have a greater understanding for the essential role that the profit motive serves in our society, for it certainly is not about fat-cats getting rich at the expense of the little guy as the Government would have you believe.