And dangerous too. Endless ignorance from The Washington Post: Five myths about capitalism.
- Greed, a natural human instinct, makes markets work.
- Corporations must be run to maximize value for shareholders.
- Workers’ pay is an objective measure of economic contribution.
- Equality of opportunity is all people need to climb the economic ladder.
- Making the economy fairer will make it smaller and less prosperous.
And what makes the list particularly absurd is the implicit assumption that anyone anywhere believes these are true, that anyone believes any of these are true.
The author is, Steven Pearlstein, ‘a Washington Post economics columnist and the Robinson professor of public affairs at George Mason University, is the author of “Can American Capitalism Survive?”’ And to answer his question, if that is the kind of advice we are getting, the answer is NO, not a chance. Venezuela here we come.
How about these five rules instead.
- Personal freedom and self interest, natural human instincts, make markets work.
- Every business if it is to survive must have enough revenue to cover all of its costs.
- Workers’ pay is related to the productivity of the economy.
- Equality is not an economic principle but you will get more of it in an open competitive economy than anywhere else.
- Expanding the economy and making it more productive will also make it fairer.