Truly Insightful Capitalist Observation
I just read this interview of Gary Becker at the Wall Street Journal, and felt compelled to quote:
Capitalism has produced the highest standard of living in history, and yet markets are hard to appreciate? Mr. Becker explains: “People tend to impute good motives to government. And if you assume that government officials are well meaning, then you also tend to assume that government officials always act on behalf of the greater good. People understand that entrepreneurs and investors by contrast just try to make money, not act on behalf of the greater good. And they have trouble seeing how this pursuit of profits can lift the general standard of living. The idea is too counterintuitive. So we’re always up against a kind of in-built suspicion of markets. There’s always a temptation to believe that markets succeed by looting the unfortunate.”
Every time I defend capitalism to some liberal, this is the #1 argument they give in opposition. Maybe I’m just weird, but I assume that government officials by their nature are just as corrupt and self-serving as your average citizen - if not more so. As such, government action tends to reflect that corruption. Capitalism, by its nature, is designed to give the best possible result even if all the actors involved are completely corrupt and self-serving - making it the superior choice for almost every situation.