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The Federalist Diaries

A Not-So-Divine Comedy, Part 7

No one can earn a million dollars honestly.
William Jennings Bryan, 1860 – 1925,
an American lawyer, statesman, and politician, three times the Democratic Party nominee for President of the United States.

The decadent international but individualistic capitalism in the hands of which we found ourselves after the war is not a success. It is not intelligent. It is not beautiful. It is not just. It is not virtuous. And it doesn't deliver the goods.
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Capitalism is the astounding belief that the most wickedest [sic] of men will do the most wickedest of things for the greatest good of everyone.
John Maynard Keynes, 1883 – 1946,
a British economist whose ideas, called Keynesian economics, had a major impact on modern economic and political theory, as well as on many governments’ fiscal policies.  

So far, we have noted many deficiencies in the capitalism which we practice.  The purpose behind such a look is to encourage thought and action about how to make capitalism work better.  So we look at more deficiencies.

The libertarian view is appealing.  Who would not like to follow his or her wishes unencumbered by government regulation?  But the libertarian viewpoint is inherently contradictory.  

It is natural under capitalism to accumulate more wealth once a person has wealth.  We see this in the United States .  You have heard something like, “The rich get richer while the poor get poorer.”  At the same time, getting richer means that the wealth has to come from somewhere, so, unless our society be generating a huge volume of wealth to divide up among everyone—which is not happening—the rich are becoming richer at the expense of others in society.  So, unencumbered by government, a libertarian might accumulate much wealth at the expense of others.  But at some point those others would want some of that wealth, and might take it aggressively, violently.  So, the libertarian would have to spend time guarding his wealth;  he would have to use his wealth to pass laws or to hire private security.  This means that some, if not many, people in a society would lose freedom or the society would birth classes with different privileges.  One might interpret this as extreme freedom in one aspect of life having to be balanced by limited freedom in another aspect of life.  

Yet, events might go in a different direction.  A libertarian might so exploit others that the others rally to pass laws limiting the libertarian’s activities;  hence, the source of government regulation.  

Interestingly, for a libertarian to accumulate wealth would necessitate a large number of consumers buying his products or services.  But the consumers would need money to do so.  From where would that money come?  From laws which would distribute money to consumers from the taxation of the libertarian’s profit or from the printing of money.  Even in the latter case, a libertarian might not be left unaffected;  his wealth might be devalued.  

Is there a solution which would permit a libertarian to live her life as she desires?  We could segregate people into those who are by nature competitive and happy to be so, and those who are by nature cooperative and happy to be so.  The libertarians would be among the competitive.  But if they chose to pursue wealth, they eventually would look for new markets, including the people who were cooperative by nature, which means that libertarians would have to trespass.  This might now be happening under the label of “globalization.”

February 7, 2008

 

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