Capitalism Is The Worst, Except For All The Rest – Part 3

Part 1 – How Wall Street Destroyed Capitalism

Part 2 – The Myths Of “Broken Capitalism”

In Part 1, we discussed how “Capitalism” was distorted by Wall Street. In Part 2, we reviewed some of the “myths” of capitalism, which are used to garner “votes” by politicians but are not really true. Most importantly, we discussed the fallacy that “more Government” is the answer in creating equality as it impairs economic opportunity.

I want to conclude this series with a discussion on the fallacy of socialism and equality, and provide a some thoughts on how you can capitalize on capitalism.

Socialism Requires Money

The “entire premise” of the socialist agendas assumes money is unlimited. Since there is only a finite amount of money created through taxation of citizens each year the remainder must come from the issuance of debt.

Therefore, to promote an agenda which requires unlimited capital commitments to fulfill, the basic premise has to be “debt doesn’t matter.”

Enter “Modern Monetary Theory” or MMT.

Kevin Muir penned “Everything You Wanted To Know About MMT” which delves into what MMT proposes to be. To wit:

“Modern Monetary Theory is a macroeconomic theory that contends that a country that operates with a sovereign currency has a degree of freedom in their fiscal and monetary policy which means government spending is never revenue constrained, but rather only limited by inflation.”

In other words, debts and deficits do not matter as long as the Government can print the money it needs, to pay for what it wants to pay for.

Deficits are self-financing, deficits push rates down, deficits raise private savings.” – Stephanie Kelton

It is the proverbial “you can have your cake and eat it too” theory. It just hasn’t exactly worked out that way.