The Thoughts of a Young Conservative on Why Capitalism is the Solution to Poverty:
Liberals (unsurprisingly) seem confused about the idea of poverty. They somehow think that it’s caused by a combination of capitalism, income/wealth inequality, systemic racism, and the wrongs of past history. Of course, all of that is wrong and capitalism is the solution to poverty.
Let’s address those claims one by one, shall we? I think doing so will show just why all conservatives should realize that capitalism is the solution to poverty, not socialism or increased welfare spending.
First, the idea that poverty is caused by capitalism is absurd. Capitalism is the only system in history that has created wealth. Other ideologies just take it, as I wrote about in “The Virtue of Capitalism.” Just read Capitalism and Freedom, Free Market Revolution, or Atlas Shrugged; capitalism is a huge wealth creator.
Socialism, on the other hand, just leads to poverty and starvation. Plus misery. As Francisco D’Anconia noted in his famous money speech, the choice is between prosperity and money or chains, slavery, and poverty. Capitalism is undoubtedly not the cause of poverty. Instead, it’s the destroyer of it. Poverty won’t exist if people are free to use their innate drive to succeed to build a fortune. It’s only when citizens are repressed and/or dependent on the teat of the state that poverty grips society.
Next, liberals somehow got it into their heads that wealth inequality is the cause of poverty. Again, that’s patently absurd. Inequality in society means that some people are earning more than others. In a capitalist society, that means they have contributed more value.
The value they add is what creates the rising tide that lifts all ships and improves society. In fact, capitalism helps the poor precisely because of inequality. Without it, no one would have any incentive to take risks and create the better goods for less that help the poor.
Finally, systematic racism isn’t real in America anymore and past oppression is not responsible for current poverty. If you don’t believe me, then check out The Bell Curve. In it, Charles Murray explains why past oppression isn’t the cause of poverty. Rather, current decisions are. If people would just make basic good life decisions, then they wouldn’t have near as many problems.
But, that would mean having a modicum of self-restraint and planning. Instead, many politicians and citizens choose to instead blame past injustices for current problems. That’s dishonest and unproductive.
So, hopefully, you can see that capitalism is the solution to poverty. It’s the only system that creates wealth, is just, and a productive way to lift people out of poverty. It’s the reason America is prosperous. It creates jobs through growing the economy, helps people grow their wealth by delivering stock market returns, and (when minimum wage laws aren’t implemented) leads to jobs and opportunities by which people can better themselves.
Capitalism is the solution to poverty, not the problem.
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