HAS CAPITALISM FAILED?

Over the last 100 years cronyism has slowly replaced capitalism. Now the wannabe tyrants have the gall to tell us that capitalism never worked. The tyrants and wannabe tyrants have always considered the wealth required to sustain and enhance our lives to be “nature's bounty.” They see economics as a problem of the distribution of “nature's bounty” instead of the creation of wealth. The President promises jobs yet ignores the purpose of jobs, the creation of wealth.

It is simple for the government to create jobs by hiring half the population to dig a hole and the other half to refill the hole. At the end of the day, they would be no wealth created but considerable energy and wealth would have been expended. The nation’s wealth consumed by the project would be gone forever. The Cronyism Economic System would have performed as expected. Wealth would be redistributed and political cronies would be handsomely compensated for managing the project. However, the wannabe tyrants could claim full employment and exhort the workers to increase productivity. Meanwhile, "nature's bounty" is depleted and standard of living of the masses is reduced.

The reason for deploying capital is the major difference between the Cronyism Economic System and the Capitalist Economic System. The Cronyism Economic System uses our capital (wealth) for political gain. The projects are selected to maintain and accumulate power.

The Capitalist Economic System uses capital (wealth) to create more wealth and earn a profit.

Cronyism Economic System has expanded for over 100 years and has almost completely replaced the mostly capitalistic system that resulted in the greatest civilization the world has ever known. The results have been:

1. Showering unearned wealth on political cronies
2. Funding projects with no hope of return on the investment
3. Government policies that provided advantages to the political cronies at the expense of many driven into poverty.
4. Government regulations protect the technology challenged political cronies has almost eliminated innovation.

Both Hitler and Mussolini obtained power during severe economic crisis. After 100 years of expansion of the cronyism economic system an economic crisis that will end our way of life and plunge the world back into the Middle Ages is imminent. We must return to our roots of individual freedom or perish!