The Miracle of Capitalism
by Loyal to the Word
Intro:
The system of capitalism, with its principles and philosophy, is regularly maligned in today’s mainstream popular culture. It is in vogue to hate capitalism; it is seen as necessary to distrust it; it is seen as reasonable and wise to make compromises between it and some form of government planning and intervention. All of these views are based on misconceptions and misinformation. They are wrong.
The truth is, that no other economic system has brought more benefit to mankind than the system of capitalism. Period. No other economic system has even come close, in fact, in matching capitalism’s ability to raise the standard of living for all people. No economic system has ever even approached its efficiency in allocating resources to where they are most productive. Nobel Prize-winning Economist Milton Friedman said,
“The world runs on individuals pursuing their separate interests. The great achievements of civilization have not come from government bureaus. Einstein didn’t conduct his theory under order from a bureaucrat. Henry Ford didn’t revolutionize the automobile industry that way. In the only cases in which the masses have escaped from the...grinding poverty...the only cases in recorded history, are where they have had capitalism and, largely, free trade. If you want to know where the masses are worst off, it is exactly in the kinds of societies that depart from that. So that the record of history is absolutely crystal clear that there is no alternative way, so far discovered, of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by a free enterprise system.” (Milton Friedman in an interview with Phil Donahue, 1979).
Because of capitalism, even the poor people of today live significantly better than kings and queens of just a few hundred years ago: modern conveniences such as indoor plumbing, automated washing machines, refrigeration and modern kitchen appliances, household forms of entertainment such as computers and television, and important modes of transportation such as automobiles, have become the norm for people even of lower income.
Because of capitalism, people live in a society of an abundance of goods and services that benefit their lives, whereas before mankind groveled and toiled for a meager existence [show a picture of feudalism]. The fruits of capitalism are good, while the fruits of opposing ideologies are poverty and despair.
We also know that God has specifically ordained the system of free market capitalism for the benefit of mankind. The Lord has said he has “established the Constitution of this land, by the hands of wise men whom I raised up unto this very purpose” (D&C 101:80), and that the Constitution was established “according to just and holy principles” (D&C 101:77) and that these principles of freedom “[belong] to all mankind” (D&C 98:5). Integral to the Constitution which was established according to just and holy principles of heaven, and endorsed by the Lord Jesus Christ, was none other than a free market economy, a system of free enterprise capitalism. This is beyond dispute.
Notable author W. Cleon Skousen has written:
“By the end of the nineteenth century, [the Founder Fathers’] formula [of the Constitution] was beginning to give Americans the highest standard of living in the world. With less than 6 percent of the earth’s population, they were producing more than half of just about everything. This was all made possible because Americans had a Constitution which allowed them to be the first nation to practice the free-market principles set forth in a famous book by Adam Smith entitled The Wealth of Nations.”
(W. Cleon Skousen, The Making of America, p. 203).
In fact, the troubles America is facing today are a result of turning away from the principles of capitalism.
The obvious corollary to these facts is: capitalism is not the enemy of mankind, as we are taught in popular culture. It is mankind’s greatest friend, his greatest boon…. It is a MIRACLE.