Capitalism Archives - Page 32 of 32 Voice For Liberty

Jun

I, Pencil: A Most Important Story

I, Pencil is one of the most important and influential writings that explain the necessity for limited government. A simple object that we may not give much throught to, the story of the pencil illustrates the importance of markets, and the impossibility of centralized economic planning. From the afterword to I, Pencil by Milton Friedman: Leonard E. Read’s delightful story, “I, Pencil,” has become a classic, and deservedly so. I know of no other piece of literature that so succinctly, persuasively, and effectively illustrates the meaning of both Adam Smith’s invisible hand -- the possibility of cooperation without coercion --…

Jan

By Bob Weeks

The Value of the Businessman

An outstanding feature of the open market is the businessman, whose success or failure depends entirely on his ability to "focus on consumer needs" and so combine existing and potential factors of production to serve consumers most efficiently. The only constructive role government can play under the free market method of overcoming poverty is to see that the participation of individuals is strictly voluntary--that none is permitted to steal from or cheat or enslave another. In the free and open society, the organized force of government is to be used only if necessary to protect the lives and property of…

Feb

By Bob Weeks

The Mystery of Capital

The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else Hernando De Soto Basic Books, 2000 The problem with most third world countries, Mr. De Soto tells us, is not that there is no capital, it's that the capital is dead. Dead in the sense that it can't be used to its full economic potential. It can't be mortgaged, it can't be divided into shares, and it simply can't be used in the same way we make productive use of our assets in the West. What is the difference between the West and the third world?…

Feb

By Bob Weeks

Tax increment financing in Iowa

Writing from Cedar Rapids, Iowa Readers of The Voice For Liberty in Wichita are well aware that I believe that when the government provides subsidies to businesses -- either in the form of cash payments or preferential tax treatment -- we create a corrosive business environment. Government picks winners and losers for political reasons, rather than letting the market decide which companies are doing a good job. Government also spends money inefficiently. Instead of letting the market decide where to best allocate capital, government chooses who receives capital taken from the people through taxation according to the whims of politicians…

May

By Bob Weeks

I, Pencil

I, Pencil Leonard E. Read (Click here to read the article.) Do you think there exists a single person who knows how to make a lead pencil? In this article, Mr. Read shows us how there is no one who knows even a small fraction of what is necessary to produce even this simple, everyday item. How, then, does a lead pencil come to be manufactured? Through the uncoordinated actions of many people, each exchanging their own small amount of knowledge for something else they want. The absence of a master mind, of anyone dictating or forcibly directing these countless…

Mar

By Bob Weeks

Why government spending is (mostly) bad

Government spending replaces the judgment of the market with the judgment of politicians. The judgment of the market refers to the billions of decisions that we collectively make each day, decisions that we freely make, that we believe will advance our self-interest. That is to say, the market is characterized by mutual agreement and voluntary consent. What about the judgment of politicians? In a free market, in order to effect a transaction with someone, each side has to please the other. But politicians have the tax system, which allows them to take money from us by force. Then, when they…

Mar

By Bob Weeks

Let free markets determine downtown Wichita’s viability

"Wichita's been an east/west town for as long as I can remember. Obviously, we're trying to change that," says Tom Johnson, president of the upcoming downtown project, WaterWalk. (Wichita Business Journal, March 4, 2005) A healthy community needs a healthy downtown. ... In Downtown, public investment has a proven track record of generating new, private investment. Since 1990, the government's investment of $165 million has stimulated $248 million in private investment. (Voteyea.com website.) "Anything downtown seems to be off-limits for criticism or analysis. I don't know why it is," Lambke said. (Council member Phil Lambke, Wichita Eagle, November 14, 2004)…