24 June 2009

Our Upside Down World

Our politics has it upside down. Both of our political parties are committed to the removal of wealth from the poor and the middle classes to distribute to the elites.

The left prefers transfers to governmental elites, and the right prefers transfers to economic elites. Neither is interested in seeing to it that wealth is widely distributed -- by providing for or improving the conditions for its creation by individuals of talent, drive, and ambition.

They both pay lip service to this concept. But neither pursues it.

Look at the response the the Panic of 2008. The Republicans began the transfer of massive funds, largely raised through taxation on the middle classes, to the financial elite. The Democrats, coming into power during this crisis, continued the transfers, even increasing them, but now under the control of governmental elites.

You don't see or hear much talk about helping regular people, or small business. You see even less action. The focus is all on big industry, big business, big finance, and big government. The entities and institutions that are failing us.

These problems come from political hangups with our capitalist system. Those who treat capitalism as a value system in and of itself, from both the left or the right, are mistaken. Capitalism is not inherently good or bad. It is simply a method of distributing resources in a society. Capitalism is not a value system. It is a product of the value system of the society in which it is placed.

The problem comes when some treat capitalism as either good or evil. It is neither. Capitalism is a tool. Now it so happens, that it is the most efficient method yet devised for creating wealth, and for its distribution. But it is not perfect, and it moves in cycles, which should be anticipated and planned for, but somehow never are.

We should start using our economic tools effectively.

No comments: