Friday, July 07, 2006

Capitalism and Unemployment

The only economic system so far to allow citizens the freedom to accumulate new wealth is Capitalism. It is the economic form of Liberty. What other system allows you to keep what you make? What other system enshrines property rights? What other system puts value into so many types of task that in a country like Canada or the US, there's only a 5-7% unemployment rate, versus the 20-30% rates you'll find in basket-case nanny states like France or Germany?

What I mean with that last bit is that, in any given city in Canada or the US, young people work jobs filled with menial, unskilled labour, which without allowing their employers the right to accumulate capital in the form of workplace technology (which is what adds value to the tasks that the employee is doing), would seem as funny as a kid flipping imaginary burgers on an empty lot for 8 bucks an hour. But they're not. They're crappy jobs, yes, but they are opportunities for these people to accumulate their own personal capital to go to school, buy houses, learn a bit about workplace processes and interactions, and grow from there.

In the nanny states, where welfare and safety net programs take wealth away from the capitalists to give to the 20-30% of people who aren't working, capital accumulation slows (because of taxation), people start making more money to stay home and do nothing (with welfare) than they would with that entry level job. But the worst thing is they never accumulate. They never get into jobs that require experienced people. They never get to pursue business opportunities that require investment. They stay poor, unemployed, and unemployable.


Anonymous said...

Yet increased wealth has not brought Americans happiness. About a third of Americans report being "happy" the same share as in 1957, when Americans were only half as wealthy.

"Higher levels of obesity and personal debt, chronic time shortages, and a degraded environment are all signs that excessive wealth and consumption is diminishing the quality of life for many people. The challenge now is to mobilize governments, businesses, and citizens to shift their focus away from the unrestrained accumulation of goods and toward finding ways to ensure a better life for all."
Worldwatch Institute

Rocketman1200 said...

Tell me what will make everybody in this world happy please.

Anonymous said...

See Happy Independence Day! comment #11.