Sunday, October 27, 2013

Fallacies about capitalism

Writing at The Freeman, Sandy Ikeda has the second installment in a series of fallacies and myths many believe about capitalism.  Like the first, this installment contains seven such misconceptions, and is absolutely required reading.  Here's number five in the second installment:
5) The free market discourages charity and sympathy. Strange that some would think that voluntarism wouldn’t thrive in a social order that is all about voluntary action and non-aggression. Perhaps that’s because many, including too many libertarians, believe the libertarian credo is, “Don’t tread on me!” Instead, I think it comes closer to the truth to say, “Don’t tread on others!” In an unfree society beneficence is typically limited to those you know well; the free market broadens our contacts. As Dierdre McCloskey has explained, the “bourgeois virtues” go well beyond what she terms “prudence alone.” And as a practical matter, wealth makes charity possible, and there is no better system for creating wealth than the free market, which decades of research has confirmed again and again
Again, this is must reading.  Read it and share it.