Beauty of Capitalism

[Ashish Hanwadikar <ashish_hanwadikar@yahoo.com>]

---------------------------------------------------------------------
Please help make the Manifesto better, or accept it, and propagate it!
---------------------------------------------------------------------
IPI_Marker

Hi Prakash,

> We need to
> spread the simple and true ideas of econmic and social liberty to
> more people. ANy suggestions ? Any ideas ? I am a student in a
> b-school. i could contribute my two-pence worth every now and then,
> time willing.

I agree! Lots of well-educated people are so full of socialist bullshit
that it is going to take huge amount of efforts to convince people of
these simple ideas!

> Some interesting ideas do come forth in these forums. Don't dismiss
> the idea of a currency based on energy so easily. REad my reply to MV
> ( the bottom of my reply to be precise) and mail me your comments,
> (personally or on the forum) about them.

As I have already written to IndiaPolicy mailing list anything that is
even remotely connected to "Universal" is repungant to me! It smacks of
Central Planning of Socialism and Communism. If anybody believes in
idea of currency based on energy then one should be free to float his
own currency based on such thing. Based on his credibility and
efficiency of the idea itself market will accept or reject this idea.
But making it a universal fiat currency is so much against Libertarism
and Capitalism that one should reject it outright!


> About the tax on ground rent, please read these essays

Capitalism is a system in which all the people acknowledge each others'
property rights (alternative is to keep on fighting for owning more
property or protecting the existing property). This ackowledgment is
not just a kind of ceasefire but also acknowledgment that the real
potential of the property comes only through trading and what you do
with that property. For example, given a sand and few chemicals one can
turn that into glass and that glass into optic fiber. Thus the real
potential of the property to serve our interests comes not from
property itself but from the power of ideas that can transform the
property into thousand times useful. Thus there is tremendous benefit
in declaring ceasefire in our fight for property by simply
acknowledging each others property and concentrate fully on beneficial
trade and development of ideas. Thus task of protecting one's life and
property is transferred from individuals to a mutually committed
arrangement called Government. By agreeing to freeze existing property
distributions and pay taxes to the Govt. for protecting the property
rights we are free to trade with each others and use the power of ideas
to enhance the benefits of physical resources available to us. Also,
when we setup a Govt. and its infrastructure (like Courts, military,
police etc.) we also agree to resolve our property disputes through a
well-defined process called as Justice system.
The rich as well as poor both benefit from this arrangement. The rich
because their life and property is protected in return for proportional
taxes. The poor benefit because they also don't have to continuously
fight for their survival and when they acquire property (by first
earning wages) they can also pay the taxes and get the benefit of
property protection from Govt. Not only that, everybody commites to
stop fighting for claiming lots of unclaimed property (unclaimed land;
airwaves for transmitting radio, TV; Ocean and Air for transportation).
The Govt. becomes sole owner of the unclaimed property. Govt. should
auction of that property to the highest bidder keeping in mind the
transaction costs. The proceeds from the auctions can be used to
enhance the Courts, Police and Military and rest distributed among its
citizens. Those who point out inequalities between rich and poor and
recommend that poor fight it out politically (essentially physical
force) to regain the lost wealth (which was exploited by rich
capitalists) are essentially saying to the poor people that hey, guys,
it is much better to fight for wealth transfer rather than create the
wealth. All this while these same so-called intellectuals are enjoying
their life in tax-funded educational institutions. Univ. of Calif.
Berkelely  in US and Jawaharlal Nehru University in India are a case in
point. These people are what I call poverty pimps.


The success of the Capitalism can be gauged by the fact that United
States is much more succesful and rich today than even the UK, France
and other imperalist countries. The UK, France concentrated on
acquiring more and more property by using force. To do so however, they
had to fight among themselves. However, the different states of US came
together and formed United States of America. The same thing could have
been done by various countries of Europe. They could have come together
and agreed to form a United States of Europe. By clearly defining and
acknowledging property rights the US of A clearly benefitted. Even
though US of A started much much later and had won independence from UK
just a 250 years back, and US of A did not attack any other country to
acquire its properties, US of A is much much more richer and powerful
than all the countries of Europe.

Now countries of Europe are coming together not in a political Union
but an Economic Union. Economic Union is characteristized by a common
currency, common central bank, etc. This is highly Socalist in nature
(smacks of Central Planning to me) which will be very detrimental to
all countries of Europe. Just watch how it collapses like Soviet Union.
The first European Union Commission was dissolved because of corruption
charges! Good start!

Regards,
Ashish


--------------------------------------------------------------------------
This is the National Debate on System Reform.       debate@indiapolicy.org
Rules, Procedures, Archives:            ../debate/
-------------------------------------------------------------------------