The case for Capitalism.

It was reported that Millenials split 50/50 on whether their generation wants Socialism or not. Let us provide them the facts because they aren’t getting them in school or in the Media. Socialism has been tried in many places. It has failed. The only countries that remain socialist are Cuba, Zimbabwe, N Korea and Venezuela. They are all showcases of miserable Hell holes. Of these four, Cuba is trying to extricate itself, but it may not happen until the Castro brothers are gone and Venezuela is in a state of revolt.

Socialists offer two excuses: 1. That the “right people” aren’t running it and that is why Socialism fails. Isn’t it odd that Socialism always falls into the wrong hands? Be the leaders black Africans, Orientals, Latin Americans or white Europeans, the result is always the same: failure. 2. Alexandria Ocasio-Cortez tells us that she does not want Socialism as practiced in Venezuela, but Socialism as practiced in Sweden. I am sure that the leaders of Venezuela thought that they were doing the right thing, but alas, they have taken Latin America’s best economy and made it into a basket case in 10 short years. How about Sweden? The Swedes tell us that yes, they did try Socialism, it did not work and they got rid of it.  Unfortunately, this is a well kept secret as far as the educationalists and the Media are concerned. AOC, for example, believes that Sweden is still Socialist.

The reasons why Socialism fails are simple: in a Capitalist economy, you must make a profit to survive and you can not waste money and stay in business for long. In a Socialist economy, the State protects the losers even if they produce loss after loss. Not only that, but the State can dictate and force practices that lose money. The losses mount until people produce very little profit and wages fall. After all, wages are paid out of the money that enterprises earn. If the State tries to pay people by printing money, the currency fails. There is another economic reason why Socialism fails. If private ownership is allowed, but Socialism is practiced via high taxes to level income, owners will do things that are less taxable. High taxes on profit discourage people from producing profit. After all, who wants to get into the 70% tax bracket?

There is another reason why Socialism must be avoided. The Chinese Communist Party decided to give up on Socialism and adopt a form of Capitalism. And China’s economy flourished.  

By now a lot of young people have been convinced that income inequality is wrong, that profits are immoral and that getting income from investing is evil. But, these very practices have been endorsed by God Himself. Jesus had a number of missions: He taught, He healed, He prophesized and yes, He became the ultimate blood sacrifice through which Man can be saved. And toward the end of His ministry, He sanctified (endorsed) inequality, profit, interest on deposits and profit from investment. This is recounted in the Gospel of Matthew (Chapter 25, under the heading of ‘The Parable of the Talents’). A rich man was to travel to a far country and before he was to leave he called in his servants and gave them his money to manage in his absence; one received 5 Talents, another received 2 and the third one, one Talent (inequality). When he returned, he called his servants to account. Servants one and two engaged in commerce and doubled their money. The rich man was very pleased with these servants, praised them and rewarded them (endorsement of profit).

The third servant, however, simply buried the Talent for safekeeping. He was severely reprimanded and his Talent was taken away. It is significant that the one Talent was not divided equally between the two servants who earned money, but was given to the one who earned the five Talents (unequal distribution of capital based on results). In rebuking the unprofitable servant the rich man lamented that at the very least the servant should have deposited the one Talent with the bankers so it would earn interest (endorsement of interest on deposit). The rich man identifies himself as one who ‘reaps where he has not sown and gathers where he has not scattered seed.’ Thus is endorsed the concept of having earnings on investing money and having others do the work (endorsing the concept of an investor who earns money on capital he invests. THIS IS THE ENDORSEMENT OF CAPITALISM ITSELF).

Some folk insist that Jesus was simply talking about the use of talents in service of the Gospel, but Matthew’s Gospel was not written in English (in which language ‘talent’ can be understood also as an ability to do something. Talent, in fact was a high value Greek coin.). Just to be certain that He would not be misunderstood, Jesus told the same parable using the Greek coin “mina.’ (Luke, chapter 19, under the heading ‘The Parable of the Minas’).  

Thus, God tells us that He is the source of wealth and gives us instructions on how to use capital. Does this mean that we are to seek wealth for its own sake, above everything else? No, not at all. Jesus answered a question that the two greatest commandments were: 1. Love God above all else and 2. To love our neighbors as ourselves. And He gave plenty of examples on how to help our neighbor materially.

Why do some intellectuals advocate Socialism? Because they do not believe in God and so construct a Baal (a man-made god) called the State to run the economy. And such an economy fails. Reliably! Every time! God warns us that anything that He is not in (i. e. does not approve of ) fails. And it does. So, the next time you hear a billionaire advocating higher taxes and Socialism asks him why he does not use his money to help people less successful than himself? There is no law stopping him. Chances are that he is just a poser who wants OTHER PEOPLE’S MONEY spent by the State to earn praise for himself from people who do not know better.