Capitalism, Inc.
Jan 08, 2020 | 1245 views | 0 0 comments | 132 132 recommendations | email to a friend | print
Dear Editor,

Criticism of capitalism includes economic inequality, materialism, social inequality and economic instability.

Only capitalism recognizes individual rights yet many would have us adopt the collectivist ideal that "the public good comes above individual rights."

Ending income inequality is literally impossible because some people will always make more money than others. There are rich and poor people in both capitalist and socialist countries.

I’d argue that we don’t really have all that much capitalism anymore. A poorly educated citizenry is unaware free market capitalism is being stifled by "corporatism," and you can’t fix a problem that is misdiagnosed.

Capitalism is freedom for individuals to own capital and capital goods and to manage economic resources however they see fit. Corporations have become, however, the preferred owners of capital goods and are extended privileged rights by central governments.

Corporations aren’t people and have been granted significant advantages that individuals do not have. Unlike individuals, they have limited liability, which reduces their risk in acting in undesirable ways.

Corporations have lower taxes than many individuals. And they are often able to negotiate them down with state and local governments. The common ordinary citizen cannot.

Corporations have very close relationships with legislators and regulators and often help craft the legislation that defines the rules of engagement in their industries, generally to their advantage.

To maximize profits, corporations want to keep new competitors out, reducing the number of existing competitors ensuring pricing power over customers. Corporations will use all the tools at their disposal to implement this strategy.

It is critical to normalize the legal rights of individuals and give them equal status with corporations. We need to rescind the tax breaks that provide corporations with a cost advantage and restore corporate accountability that has disappeared through severely limited liability.

Let’s stop blaming our problems on capitalism.

Sincerely,

Ed Konecnik

Flushing

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