Capitalism Never Fails

When liberals and socialists start railing about the failure of capitalism, remember that capitalism has not failed. There has never even been any danger in unbridled capitalism. What causes a depression are both the rejection of capitalism and the corruption of capitalism. Capitalism can never fail because it generates an optimum effeciency in resource usage.
What is presented as failure of capitalism are distortions in the market caused by powerful political interests that use democracy to unfairly divert resources to themselves. The failure here is of government allowing corruption of markets.
Despite its enormous benefits, every society rejects capitalism over time. The human species is genetically programmed to assign economic decisions to a central authority. Not by choice but by a compulsion from antiquity, people in a democracy start moving back towards living in servitude. Servitude is more familiar genetically, feels normal, and is opted for without ever engaging in thought.
During the Great Depression, it was often said that capitalism had caused the misery. That notion is completely false. At the darkest days of the Great Depression, rank and file Americans were more prosperous than any group in the world had every been prior to the introduction of free markets.
During the past thirty years, you have allowed your government to dismantle our free market system. Day after day, pillars of prosperity have been removed from our system, with the approval of the voting population. The integrity of our capital markets has been destroyed. There is not one honest financial market in the world today. Our free market system today exists only in the imaginations of the people who live here.
The United States has actually already entered a depression. That fact is just not widely acknowledged. The suffering is not near as intense as it eventually will be. The depression of the current era will be many times worse than the depression of the 1930’s. What you will see will be the economic version of a thousand year flood. During the 1930’s the culture of free enterprise was still alive and viable among the general population. In this 21st century, the culture of free enterprise is completely missing.
Chances are very slim that we will emerge from the coming disaster as an intact free society. In an aggregation where herd behavior is the rule, more not fewer roles will be assigned to government. The process of seeking security by moving to the center of the herd will guarantee an unprosperous outcome. At this point it is highly important that each individual figure out how to take care of himself. For several decades it is going to be a serious every man for himself situation.

Curbside Jimmy’s Hobo Experience
Curbside Jimmy gets a government grant to ride the rails? Where is the outrage?

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About Fantasy Free Economics

James Quillian independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.
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