The miracle of capitalism

The miracle of capitalism is that, first of all, it makes the correct assumption about mankind and how people function. That assumption is that human beings will virtually always act in a way that tends to increase their own happiness or satisfaction. This may be described in various ways:

• Self-defense
• Self-preservation
• Self-serving
• Selfishness

The actions may range, for example, from building an improvised shelter when lost in a wilderness to buying an iPhone. These are both acts of that put self ahead of other options. For example, I may destroy trees or kill an animal to survive when lost in a wilderness area.

What most liberals, progressives and leftists, however, fail to consider is that the buying of the iPhone was just as selfish an act as selling the iPhone was—as was the creation and manufacture of the iPhone.

• If you bought an iPhone, you did so because you felt that you would be happier, more satisfied or better off for having purchased it than by not purchasing it and keeping your money or using it to throw a big pizza party for your friends. Your act was purely selfish. You did not make the decision on whether the world would be a better place if you had an iPhone. You also probably did not consider: “Maybe I should just mail my money to the federal government so they can help more poor people with it.”
  
• If you sold an iPhone, you did so because you felt that your own situation would be improved by having sold it. This holds true whether you were the salesperson behind the counter, accepting a wage—and maybe a commission—for selling the iPhone; or if you were the owner of the franchise or store that sold the iPhone to the end-user. Indeed, it holds true down the entire supply chain—the distributor, the wholesaler, the manufacturer. Each of these were acting in their own self-interest when they acted to sell the iPhone.
  
• If you manufactured an iPhone, chances are you did so because it was in your own best interest to do so. (This is where it gets touchy.) Things are not so wonderful in China. It is quite possible that an eleven-year-old working ten hours a day manufacturing iPhones in China is not being coerced—at least not by Apple®. It is not at all unlikely that the parents of the eleven-year-old feel that it is better for the entire family for this child to be working in the factory than to be in China’s schools of indoctrination, where the treatment of the students may be no better than the treatment in the factory. It is even likely that the eleven-year-old worker feels that it is better for him or her to be in submission to his parents than to rebel. In fact, this young worker may even feel a tingle of pride and satisfaction that he or she is able to contribute to a better life for his whole family by working in the factory. (Granted, this is not the American way—to put children into factories—but we are not in a position to prejudge how other cultures grow and evolve over time. For more on this topic, please read here.)
  
• If you created the iPhone, if you were part of the product design team or even an inventor of one of the components, you, too, decided to create the product and work to get it into production because you were selfish. You did it because you thought you would be more satisfied or better off for having done so than in not doing so. It may have been because you were paid by Apple® or some other company to do the work. Or it may have been that you were simply so enthralled by the invention and innovation that the only way you could find satisfaction was to see it produced and distributed—even if your financial reward was relatively small by comparison. Either way, you selfishly sought whatever it was that brought you satisfaction or happiness.

So, what is the miracle of capitalism? It is the fact that capitalism turns your selfishness into service to the satisfaction of others.

Apple®, in the absence of government coercion, has no power to force anyone to buy an iPhone or an iPad or an iPod. The buyer—as indicated above—buys the product voluntarily (choosing it above all the alternatives, which are not just other similar products, but every other option—including just keeping the money) because the buyer sees the value of the product/service provided by the creators, manufacturers and sellers who bring the product/service to him.

This is the miracle of capitalism: transforming serving for self-satisfaction into service for the satisfaction of others.

On religion gone wrong

When we think of the Puritans, we usually think of wholesome, God-fearing, upright people in black clothes with buckles on their hats. Oddly, they left Europe because of religious intolerance, but once in Massachusetts they denied their own settlers any religious freedoms of their own. In fact, religious dissenters were expelled from the colony.

I, personally, have a strong faith in our Lord Jesus Christ, but it seems that when religion joins itself to political power that things always go awry. If the living and actions of the faithful are based on, well, faith (as they are or should be); then why do the religious feel compelled to force those around them into conformity through the law when they have the power to do so?

It makes no sense to me; nor does it, I believe, to God, our Father, and the Father of our Lord Jesus Christ. Certainly God is not glorified by those who keep the law—secular or religious. He is glorified by those who live by Christ and who take Christ as their very life and everything.

On economics, human action and capitalism

Every individual is constantly making choices in the marketplace. This is what we mean by “human action.” With each decision, the consumer decides how to use his or her limited resources (and they are limited whether one is a pauper or millionaire).

You and I are constantly making choices such as: "Will I be better off if I spend my money for this television or that television?" (comparisons between similar products) while, at the same time, we are also considering, "Will I feel better off if I spend my money by paying off my credit cards and getting another latte instead of buying a new TV?"

Even though we sometimes may feel coerced into buying a product (say, fuel for our car), we are still making a free-will decision. We are asking and answering questions like: "Will I be better off putting gas in my car or taking the bus to work? Or maybe I could just hitch-hike to work. Then again, maybe I'd be better off just quitting my job and not putting gas in my car ever." Even the things we feel we must do when we'd rather be doing other things—like going to work when we'd rather be fishing—are free-will choices based on which decision we feel will make our situation better (either in the short-term or the long-term).

Capitalism does not favor the alert! Life, in general, favors the alert.

People who pay more attention when they drive, operate heavy equipment or cross the street are more likely to survive and prosper than those who do not. People who are more willing to respond as effectively as possible to changes in their environment that will affect their short-term or long-term welfare will generally be better off than the lazy, indolent, lethargic or foolish.

That's not because capitalism is opposed to such people, but because such people fail to seize opportunities for surviving and thriving when the opportunities present themselves.

As they say, “Opportunity only knocks once.” But even if it knocks a multitude of times, there will still be those who will miss it.

That is not capitalism’s fault.

---

For more about what capitalism is or is not, read here.