Why I Love Capitalism (Part 1)

Conservatives seem to have a reputation of being obsessed with the idea of a free market. The Adam Smith laissez faire (lit. “leave alone”) economy is the only way, they claim, and then get angry when it is interfered with. And with good reason. You see, I have a confession to make: I love capitalism. Here’s why:

1. Capitalism takes into account human nature and bridles it for our advantage

In the first colonization attempts at Jamestown back in 1607, the settlers were commanded to pool all of the profits from their labors. Each worked according to his ability and took according to his need. What happened? It was a complete disaster. Two thirds of the first group died of starvation in a land abounding resources! Reinforcements were sent in 1609, and the results were the no better; 440 men died out of 500 because of lack food. Things changed in 1611, however, when Sir Thomas Dale arrived from England. He did away with this early communist pooling system and gave each settler 3 acres of land and provisions to get each started in beginning their own settlements. What happened? The colony finally began to prosper and thrive. The moral is, if people will not benefit from their own efforts, the natural human response is a halt in those efforts. Enter, capitalism.

“Incentive is the key word. Incentives matter so much that economists James Gwartney, Richard L. Stroup, and Dwight R. Lee begin a marvelous little book with the declaration, "All of economics rests on one simple principle: that incentives matter. Altering incentives, the costs and benefits of making specific decisions, alters people's behavior." Where profits are denied, entrepreneurship and innovation are stifled and all our lives are the worse for it. Beneath the definition of capitalism is the realization that we are never so efficient and effective as when we pursue our own reward.” – Patrick Sean O’Sullivan

Maybe it seems to you that basing a system on the idea of pursing your own rewards is a little… carnal. But think about it, is this idea that you reap what you sow really all that foreign?

Ayn Rand sums it up excellently:
“Capitalism demands the best of every man – his rationality – and rewards him accordingly. It leaves every man free to choose the work he likes, to specialize in it, to trade his product for the products of others, and to go as far on the road of achievement as his ability and ambition will carry him.”

Although Rand may have supported some interesting beliefs religiously, her ideas on capitalism are very insightful and have greatly benefited American society.
Any system that does not reward hard work any more than laziness will ultimately fail.

(Continued in Part 2)