Capitalism 101

Here's something I don't understand everyone understands; the maximum amount of freedom for the maximum amount of people comes about when everyone has an equal amount of power to influence their own destiny. That's not too complicated, is it?

Freedom and power are in a 1 to 1 relationship with each other; as soon as someone has more power than someone else, that someone else has less freedom. It's so straightforward that it's almost too embarrassing to explain it. Now, let's make a couple more links here; more wealth and more property means more power. Can we all agree on that? I mean, when I own a piece of land, that grants me the power to exclude anyone else from using or even walking on that piece of land. When I own anything at all, that grants me the power to exclude anyone else from using it. Are we in agreement that property equals power?

Let's go one step further; that power exists only when there's an institution to back that power with force. That institution, my friends, is the government. I've listened to and read many arguments from libertarians and anarcho-capitalists, ranging from wild-west scenarios to private institutions settling disputes around contracts, but they all amount to barbarism or some fantasy arrangement that resembles government in all relevant ways. The contract that says I own that piece of land is worthless, meaningless if I don't have the force of the government behind my back helping me keeping you all from my land. I'm no match for y'all, see?

Coming back to my opening statement; the maximum amount of freedom for the maximum amount of people comes about when power is divided equitably among those people. And that means that property and wealth most also be divided as equitably as humanly possible. We see that, don't we? How is it then that so many people still equate capitalism and the free market economy with freedom? Why are free markets and free democracies uttered in the same breath? I don't get that. At all. I was reading a couple of articles about the FED's policies to curb inflation by raising interest rates again, which is what inspired me to go on this short rant.

One of those articles, discussing the influence on the rising CPI (Consumer Price Index) from different market segments, literally said this:

The U.S. economy has been on a roller coaster the last year, but because of government programs household budgets were largely kept whole. During the “lockdown” months, spending increased around the home on things like cars, appliances, and food. Supply chain issues (also caused by the pandemic) meant manufacturers struggled to meet that increased demand.

The result was Economics 101: Higher demand + lower supply = higher prices.
_{source: Reuters}

I mean... Just think about this for a couple of seconds; it made me angry when I did... What do you mean, "economics 101"?!? There's no law of nature that demands prices have to rise when supply goes down and/or demand goes up. This is exactly the kind of capitalist realism thinking that grants more power to the already powerful. Rationing, completely bypassing this dumb irrational "system" of free market economy is completely valid in times of need. And in all other times if you ask me, when it comes to the stuff we need for a reasonable standard of living; food, energy, housing and healthcare to name but a few. This has been done during wartime exactly because the potential of the free market to disadvantage all those without wealth and power. During the Second World War scarce products were rationed. For example: when milk was scarce, it was rationed. If we'd let the free market do its thing, and let the price of milk skyrocket, wealthy people with cats and dogs would be able to buy milk for their pets while poor mothers (the fathers were oversees fighting fascism) couldn't afford to buy milk for their young children. See how that works?

Reuters is right, but also wrong; it's not economics 101, it's capitalism 101. With the amount of power granted by wealth and ownership, democracy isn't working and the FED as well as other Central Banks are the most powerful institutions in the world, right next to the multinational corporations they service. And with government putting the use of force behind those who own the most, democracy is doomed even further. How I wish more people saw capitalism for the wretched socioeconomic monster it is...

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