The Great Reset VII: Capitalism for the Rich and Socialism for the Poor

Contact Your Elected Officials

The standard leftist refrain about “advanced capitalism” is that it amounts to “socialism for the rich and capitalism for the poor.” Like most leftist notions, this idea represents almost the exact opposite of the truth. The system they refer to is anything but socialism for the rich and capitalism for the poor. Capitalists do not want socialism for themselves and capitalism for the rest. Capitalists seek profit, which can only come under a capitalist system.

Of course, the phrase “socialism for the rich and capitalism for the poor” is premised on the leftist belief that socialism is obviously beneficial for those living under it, a veritable land of milk and honey, while capitalism is a nefarious, dog-eat-dog, every-man-for-himself “anarchy,” where the dogs fight each other for the scraps and many necessarily starve. Socialism is to be sought and capitalism to be avoided, at all costs. But the truth of the matter is that capitalism is the productive system that creates wealth and rightfully distributes it, while socialism is the consumptive system that restricts the creation of wealth and wrongfully devours it.

Why is this the case? In socializing the means of production, socialism disincentivizes personal, private investment in capital formation, including capital in oneself. Under socialism, private investment in capital resources, including in oneself, is discouraged (or disallowed). Socialism thus favors the noninvestor, the nonproducer, and the nonuser of the means of production and disfavors (or disallows) the private investor, the producer, and the user of the means of production. Therefore, fewer people will undertake these roles, and capital formation will decline; less appropriation of natural resources, less development of new factors of production, and less upkeep of old factors of production will occur.1

Additionally, since investment in productive factors is discouraged (or disallowed), socialism disincentivizes saving and encourages consumption. Since one cannot become a capitalist, there is less reason to save and more reason to spend. The result will be less production of consumer goods, and likewise, a lower standard of living for everyone. Socialism also results in a wasteful use of the means of production because it does not respond to changes in demand. Without entrepreneurs to reallocate capital resources to changing demand and improved means, socialist planning cannot adjust to changes in demand and production. This means that at least the production of less wanted goods and services and possibly even the nonproduction of needed goods and services will result.

By Michael Rectenwald

Read Full Article on MichaelRectenwald.com

The Thinking Conservative
The Thinking Conservativehttps://www.thethinkingconservative.com/
The goal of THE THINKING CONSERVATIVE is to help us educate ourselves on conservative topics of importance to our freedom and our pursuit of happiness. We do this by sharing conservative opinions on all kinds of subjects, from all types of people, and all kinds of media, in a way that will challenge our perceptions and help us to make educated choices.

James Franklin’s contract fallout

Penn State’s decision to fire head coach James Franklin after a disappointing 22–21 home loss to Northwestern will cost an estimated $56 million buyout. 

Trump’s Middle East Trip Led to Historic Breakthroughs

Trump’s bold, unconventional strategy helped end the Israel-Hamas war and set the stage for a more stable, prosperous Middle East.

Pretending Really Hard

The world is real and so are its problems, too. Reality is the enemy of liberals, even though they are pretending, really hard, that it is not.

Trump 2.0’s Eurasian Balancing Act Has Failed

Trump's Eurasian balancing act has failed due to his arrogant and aggressive approach towards all three countries.

Should Palestinian clans rebelling against Hamas be given Gaza?

Hamas’s October 7 attack exposed its violent ideology, showing cruelty toward its enemies and also against the Palestinian people it claims to defend.

Trump, Patel Confirm FBI Special Agents Will Get Paid During Shutdown

FBI special agents will receive their paychecks despite the government shutdown, according to President Donald Trump and FBI Director Kash Patel.

Trump Admin Withholds $41 Million From California Over English-Language Trucking Rules

Trump admin withholds $40.6M in California transportation funds, citing failure to meet federal English proficiency rules for truck drivers.

An Inconvenient Study – Feature Film

Journalist Del Bigtree challenged a top infectious disease expert in 2016 to a vaxxed vs. unvaxxed study. The long-hidden results are finally revealed.

Federal Judge Temporarily Blocks Trump Admin’s Shutdown-Related Layoffs

A federal judge on Oct. 15 temporarily blocked President Donald Trump’s plan to lay off certain federal employees during the government shutdown. 

Trump Posthumously Awards Charlie Kirk the Presidential Medal of Freedom

President Trump posthumously awarded Charlie Kirk the Presidential Medal of Freedom in the White House Rose Garden on Oct 14, Charlie's birthday.

Trump Names Longtime Adviser Dan Scavino to Key Personnel Position

One of President Trump’s longtime advisers, Dan Scavino, is going to be in charge of selecting and appointing key positions within the executive branch.

First Lady’s Effort Helped Reunite 8 War-Displaced Children With Their Families

First lady Melania Trump said 8 children impacted by the fighting between Ukraine and Russia were reunited with their families on Oct. 9.

Trump to Impose New 100 Percent Tariff on China on Nov. 1

President Trump said that the US will impose an additional 100 percent tariffs on Chinese goods and export controls on critical software starting on Nov. 1.
spot_img

Related Articles

Popular Categories

MAGA Business Central