I read Mish every day, for his research is great and his analysis often good. He is a capitalist (and I am not) and a recent post is a good opportunity to compare and contrast.
Mish rebutted a communist's criticism of capitalism, which is a tough job since communists get their facts straight (and fall down on prescription). So read Mish's rebut of Kotler, and below is my rebut of Mish, which delineates the differences among capitalism, communism and free markets. Mish's points are numbered, and in helvetica, mine are in times new roman.
Feel free to forward this by email to three of your friends.
Mish rebutted a communist's criticism of capitalism, which is a tough job since communists get their facts straight (and fall down on prescription). So read Mish's rebut of Kotler, and below is my rebut of Mish, which delineates the differences among capitalism, communism and free markets. Mish's points are numbered, and in helvetica, mine are in times new roman.
Mish 14 Point Rebuttal
1. It is capitalism that is responsible for improved standards of living over the decades.
Capitalism is state-sponsored, so it has winners and losers. It is responsible for the improved standards of living of the winners. We all love a system that works for us. We are all victims of survivorship bias. Only free markets can improve standards of living, and capitalism is no more free-market than communism.
2. The Fed and government bureaucrats, not capitalism is behind growing income inequality. That said, some degree of inequality is not only a good thing but a very necessary thing. People need to be rewarded for bringing new ideas to the market. Successful new ideas raise the standards of living of everyone, and income inequality creates the very incentive to market new ideas.
Right, but the patterns and practices enshrined in law to support capitalism are the result of capitalism. Free markets are anarchic, and capitalism is not. Mish begs the question when he says “people need to be rewarded...” Prove it. If your definition of wealth is personal accumulation perhaps, but the innovators motivation is rarely personal accumulation. Straw man argument.
3. The inflationary policies of central bank planners is the primary reason people do not make a "living wage".
Inflation is inherently capitalistic.
4. Throughout history people feared automation. Yet every technological advance created new jobs. One reason for the acceleration of job losses now are the very "living wage" proposals espoused by those like Kotler that price humans out of jobs.
Automation requires higher paid people to maintain machinery and equipment. Capitalism dispossesses those who love farming by means of collectivization through usury.
5. It's not the role of businesses, nor should it be, to be concerned with undefinable "social costs".
Economics is value neutral? How come the Austrians use the term “moral hazard” when referring to investment. In a free market, actors are exquisitely interested in social costs of their activities, for upon the weal of their customers all depends. Only capitalists need be dull to costs, for their results are rape and pillage wherever it raises its ugly head.
6. It's not capitalism that fails to charge businesses for pollution costs, but rather governments.
Wait what? The government is supposed to charge for pollution costs? How? Cap and trade? In a free market, the costs of pollution are allocated strictly to the polluter. Capitalism allows for the privatization of profits, the socialization of losses.
7. It is beyond idiotic to propose capitalism causes economic instability. It is governments and central banks that cause economic instability.
Now Mish, mustn’t bite the hand that feeds. No government, no capitalism, for no hegemon to enforce the fraud of usury that is the heart of capitalism (accumulating capital for investment, either malinvestment or misallocation.)
8. With his concern about "community commons", one can easily see Kotler is a dyed-in-the-wool socialist. The problem with socialism is, it does not work and never will.
Actually, community commons works quite well, Israel had 400 years of no one owning property as we know it, Iceland too, all reverting to original allocation, the best free market example working on earth today, Hong Kong, no one is allowed to own land, American Indians make 99 year leases with the paleface, not sell them land... common ownership works quite well in free markets, but is impossible in capitalism, wherein personal accumulation is paramount.
9. Capitalism does not encourage high consumer debt. The Fed and central banks do, in the inane belief debt drives the economy.
Ungh... the excess of the heights Mish deems improved standards of living cannot be achieved without the FED and central banks. Capitalism depends on debt. Marvel at the malinvestments and misallocation, if it benefits you it is good, ignore the povery worldwide, whence it was mulcted.
10. Capitalism does not let "politicians and business interests collaborate to subvert the economic interests of the majority of citizens". Rather corrupt politicians willing to do anything to get reelected are the problem.
Capitalists are innocent bystanders in the actions of politicians and capitalist business interests? hmmmm... internal contradiction.
11. Capitalism does not favor short-run profit planning, but tax laws might.
Taxes don’t matter in a free market.
12. In point 12, Kotler argues in favor of "anti-competition". Competition is the very essence of improved products and rising standards of living.
Mish you know that all government action is by means of regulatory capture, and the capitalists write the rules by which free markets are curtailed. Funny how you ignored that, to only note that competition is good. Kotler implies competition is good too. A sore thumb this point. Only free markets can properly regulate themselves. You took a pass.
13. Capitalism does not focus on GDP at all. Misguided economists, politicians, and central banks do.
True, but his point is macroeconomic, and at the microeconomic, capitalists define wealth as accumulation, which is misanthropic.
14. Pray tell, whose "social values" do we need to consider? Mine? Yours, ISIS? Kotler's? Personally, I do not want some jackass or set of government jackasses, deciding what is socially right or wrong.
Capitalism is state-sponsored, so it has winners and losers. It is responsible for the improved standards of living of the winners. We all love a system that works for us. We are all victims of survivorship bias.
While the capitalists and communists argue over social values, only the free market can reflect by human action, free from force or fraud of the hegemon and its minions, what values society possesses.
A pox on both their houses.
Feel free to forward this by email to three of your friends.
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