Devout Patriots (like me) have a difficult time accepting that the United States has slowly been transitioning to a Communist-style economy. Not only has our economy shifted to this authoritarian style of economics, but the perpetrators of this corrosive scheme have also been rubbing it in our faces for years. Although I am not an expert in economics, I am someone who can read and understand basic concepts that differentiate a Capitalist system from a Communist system. Let’s first address the basic tenets of both Capitalist and Communist forms of economics.
Capitalism is defined as “an economic system characterized by private ownership in which the free market alone controls the production of goods and services.” – Investopedia
Communism is defined as “a non-market economy in which government intervention is important in allocating goods and resources and determining prices.” – The Free Dictionary
Think about this definition of a Communist economy for a moment. Ask yourself, why is it when the U.S. Economy starts failing, the government is to blame yet people look to the government to fix it? We will address this question in this article.
As for Capitalism, it has often been taught that there are six basic principles (sometimes referred to as guiding principles) of Capitalism. They include the following:
- Purpose
- Economic Value
- The role and responsibilities of companies
- Innovation
- Competition
- Profit
While we can unpack copious definitions for each principle, for the sake of brevity, we will only provide a synopsis.
Purpose is what guides Capitalism, meaning, the purpose of the existence of a company is not just to hire employees, but to ensure the employees are compensated fairly (which includes healthcare), but these companies pay taxes and provide goods and services, which have the compounding effect of raising the standard of living for all participants of society.
Economic Value is composed of financial value, intangible value, and social value. Companies such as Lockheed Martin, L3 Communications, and Boeing understand this concept almost too well. Not only do they have a financial value to the United States Tax Payer for defense, but they also are on the cutting edge of intangible value with their intellectual property. Lastly, their social value is practically unmeasurable as they have influenced more defense and cultural projects than one can fathom.
The role and responsibilities of companies are crucial for a successful Capitalist economy. The private sector should be the leader in innovation and new technologies while maintaining ethical standards. Real-life Homer Simpsons do not have to dump toxic waste into our water supply; corporations manage that all on their own. When a company violates ethical or regulatory standards, government intervention is an acceptable action.
Innovation is not just the responsibility of companies but of all individuals. When companies employ innovative members, often they are rewarded, as they should be. For example, if Steve is working for a concrete plant and develops a mixing technique that is better for the customer and the company, Steve should be rewarded. This behavior is amplified by the company to encourage innovation in future employees, providing them with a purpose.
Competition is quite simple. For companies to be innovative and improve goods and services, there needs to be a healthy level of competition. Imagine if there was only one operating system, such as iOS. Some may be happy because of the “cult” following of Apple products but that loyalty to Apple will fade over time. The product eventually declines because there is no reason to improve the product. Apple hypothetically would own the market.
Profit is the measure of success. It benefits society to have workers being adequately compensated, and organizations have the necessary capital to improve their products and services. Most people understand this concept.
Of course, the problem with these guiding principles is that companies do not always adhere to them, which has led to the support of Regenerative & Ethical Capitalism. However, let us now understand the principles of a Communist form of economics. (Keep in mind, we will not be discussing Karl Marx’s 10-Point Plan in the Communist Manifesto.)
- Ownership of Industry by Government
- Price Controls
- Five-Year Plans
- Inefficient Firms Protected
- Innovation Difficult
- Bureaucratic
- Lack of Freedom
Do you see how this is America yet? If not, it’s okay, many of us were not taught basic economics or the basics of Communism, so let’s break it down further.
Ownership of Industry by Government is one of the simplest points to prove, as the COVID-19 “Pandemic” proved this. Who produced the “vaccines” and “treatments” for COVID-19? Private companies. Who paid for them? Taxpayers. If you worked for a major airline or any company that held a government contract, that company was required by the Government for all employees to be “vaccinated.” So, who owned the company–the Government, or the shareholders? Another example and one that is near and dear to my heart is the bailout of the auto industry between 2008-2010. Approximately $80 billion dollars was sent to these companies to protect the employees and ensure the doors stayed open. Why not let these people who mismanaged the company fail? Undeniably, outside sources would purchase the companies and allow for principles of Capitalism to engage. Let me ask you this, did you get a free oil change from these auto manufacturers? Did they provide you with a better product? Do they treat you with respect when you are beholden to them to get your car repaired? Welcome to a government-controlled industry. These companies understand, no matter how poorly they treat you, how horrible of a product they deliver, Daddy Government will be there to bail them out.
Price Controls are government attempts to appease the population rather than address the problem of why prices are so high, such as the case with inflation. People do not want to accept that prices generally reflect the status and health of an economy. If Governments intervene and control what you pay for goods and services, the outcome will be less production of goods and services. There are tons of examples of Price Controls but one that many have thought of is minimum wage. Yes, the minimum wage is a form of price control. As well-intentioned as it appears, it again does not address the reasons why people want higher pay…the cost of living is too high! However, multiple cases (not studies but real-world examples) have shown that when $15 minimum wage is met, jobs disappear and people make less money, especially in the restaurant industry which already runs on razor-thin profit margins.
Five-Year Plans are when Communist governments mandate means of production, i.e., steel or energy production. That includes Joe Biden and every other liberal who is talking about banning fossil fuels by 2030 so people will be forced into using “green energy.” While it is not exactly a five-year plan, the idea is the same. This is never a good idea because governments lack the ability to even predict their own spending, efficiency, and bureaucracy. Yet they somehow have the notion they can predict where the economy will/should end up.
Inefficient Firms Protected is another way of saying corruption is tolerated once a person reaches a certain level. Not only is corruption tolerated, but it’s also encouraged by other corrupt individuals surrounding them because nobody wants to be unethical and immoral alone. Example: The United States Postal Service (USPS).
Innovation Difficult refers to the question of why anyone would innovate when there is no incentive to do so. Why put in extra effort if the bare minimum is easy enough, and it wouldn’t matter anyway because the government controls all means of production? When do you ever see government employees applying innovation to their career field? They can’t due to the next point below.
Bureaucratic is what governments are. Things are purposely made difficult. While sometimes this is good (for example, if war must be declared on another nation), efficiency should be difficult to achieve. But in economic measures, mass bureaucracy kills economic progress. Companies are constantly waiting on building permits to create and employ, and this bureaucracy shifts with every presidential candidate thus exacerbating the problem.
Lack of Freedom is what we are seeing today in our society. Why would any engineer create a new product that can compete with electric cars? The government has already mandated that people will move to electric cars. This hypothetical engineer does not have the freedom to conduct this research because of government actions and mandates.
It is important to remember that governments do not create jobs–they destroy them. Their mismanagement of budgets causes them to steal from taxpayers to create more government jobs. This gives the perception that governments benefit society. Take the example of the United States Postal Service. It cannot seem to turn a profit, yet we pay for it, twice over: once with taxes and once when you mail something. We are living in an ineptocracy (in-ep-toc’-ra-cy), “a system of government where the least capable of leading are elected by the least capable of producing, and the members of society least likely to sustain themselves or succeed are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.”
Loyal Nine out.
———-
Loyal Nine is an independent filmmaker and researcher who produces content for Dauntless Dialogue and has his own channels on YouTube, Rumble, and Odysee. His main focus is educating the world on the dangers of Communism, deception by media organizations, and governments worldwide so we can live how our creator intended us to live–free.
Dauntless Dialogue: https://dauntlessdialogue.com/author/loyalnine/
YouTube: https://www.youtube.com/channel/UCIbT3-e51_uP75bjpvwAt1A
Rumble: https://rumble.com/c/LoyalNine
Odysee: odysee.com/@LoyalNine:6