More on the realities of capitalism

Professor Williams takes on the Pope with what capitalism really is. In so doing, he gives Carson in the previous post a lesson in reality. The Pope and Capitalism is a response to those who castigate others as ‘selfish and greedy’ and denounce economics based on free choice and liberty.

“Profits force entrepreneurs to find ways to please people in the most efficient ways or go out of business. Of course, they can mess up and stay in business if they can get government to bail them out or give them protection against competition. Nonprofits have an easier time of it. Public schools, for example, continue to operate whether they do a good job or not and whether they please parents or not. That’s because politicians provide their compensation through coercive property taxes. I’m sure that we’d be less satisfied with supermarkets if they, too, had the power to take our money through taxes, as opposed to being forced to find ways to get us to voluntarily give them our earnings.”

It is the ‘tugging at heart strings’ that keeps people paying taxes. That is the incentive in government and you see it any time the school systems want more money or when there is a fiscal showdown and the park service targets the public or whenever vague and abstract ideas like justice or equality are bandied about as where something must be done.

In the private sector, such come-ons tend to fade as the reality surfaces. In the public sector, they only seem to grow and fester.

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