Economic Throwdown! True Capitalism vs. Crony Capitalism vs. Socialism/ Communism

Written by William Pauwels on May 15, 2013

Capitalism is often blamed for the ills of a society. This is grossly unfair and inaccurate. In fact, Capitalism has contributed more wealth and prosperity to the greatest number than any other economic system.

Capitalism is a system that … fosters competition. Competition is good for consumers. Competition encourages innovation, superior service, greater efficiency, greater productivity, lower prices, etc.

Socialism and Communism inhibit competition and foster dictatorial price controls and limited competition.

Capitalism rewards the talented, the successful, the productive, the risk takers, the effective workers, etc. These individuals, in turn, contribute to the prosperity of a society – as long as Free-Market, Constitutional, Free-Enterprise is allowed to rule – and appropriate safety nets are provided for the security and safety of the sick and disabled.

Unfortunately, the United States is not a true Capitalistic society, but rather a Crony Capitalistic society – the result of de facto Socialistic/Communistic ideologies promoted by Leftists, Democrats, so-called Progressives, and labor unions. Crony Capitalism has many of the failings of  Socialism/Communism. It rewards bigness and power – big government, big politicians, big companies, big unions, big media, and those who can deploy monetary power and influence to manipulate outcomes. This is not true Capitalism, which fosters intense competition and rewards excellence, accomplishment, and success.

Please watch the short video above (and linked below). It deals with the three primary myths perpetrated about Capitalism. It’s easy to understand and will dispel the myths fostered by Socialists, Communists, Leftists, Democrats and Progressives.

Watch on YouTube

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William Pauwels
William A. Pauwels, Sr. was born in Jackson Michigan to a Belgian, immigrant, entrepreneurial family. Bill is a graduate of the University of Notre Dame and served in executive and/or leadership positions at Thomson Industries, Inc., Dow Corning, Loctite and Sherwin-Williams. He is currently CIO of Pauwels Private Investment Practice. He's been commenting on matters political/economic/philosophical since 1980.