Capitalism didn’t fail America… America failed capitalism… In the mailbag: “The only way socialism can work is to take away my equality and respect”…
Drawing on the big idea in the new book by Legacy Research cofounder Bill Bonner (more on that below), we showed you how trade tariffs are win-lose deals.
And we laid out the case for why the economy would be better off without them.
As recently as a decade ago, being in favor of free trade wasn’t at all controversial.
Most Americans believed that keeping the feds from meddling in trade was a good thing. Free trade was a central pillar of Democratic and Republican policy.
And it’s become popular on both sides of the political aisle in Washington, D.C., to bash the idea.
Today, I (Chris) will share some insights into why free trade and genuine capitalism are the best hope for an economy hooked on government programs and bogged down in regulations.
Then tomorrow, we’ll take a deeper dive on Bill’s landmark insight about what really makes capitalism tick… with an exclusive extract from Bill’s new book.
If you’ve been following our reader mailbags (scroll down for the latest batch of feedback), you’ll know the hottest topic is over which form of government is better – capitalism or socialism.
But as Bill has been showing readers of his Diary e-letter, economies aren’t either capitalist or socialist. They simply have varying degrees of win-win and win-lose deals.
The more win-win deals there are, the more “capitalist” a society becomes. The more win-lose deals there are, the more it leans “socialist.”
You can complicate it all you like. But when you boil it all down, that’s always the choice – win-win, or lose.
Win-win deals also leave all parties that do the deal better off. As Bill put it in yesterday’s Cut…
Win-win deals allow people to decide for themselves what they want. Then, through the information carried in market-set prices, these deals help businesses and individuals maximize their satisfaction.
The baker does not light his oven at four in the morning for the love of baking. Neither does the bakery patron share his wages with the baker out of compassion. Rather, both are engaged in a win-win deal of mutual benefit and voluntary exchange.
Win-lose deals, on the other hand, are involuntary. They’re either imposed on you by government or at the end of the barrel of a gun. And only one side benefits.
The only way to create lasting personal wealth… and keep real economic growth forging ahead… is through robust networks based on win-win deals.
That’s why, over the past half-century – an era of expanding global trade – the percentage of people living in extreme poverty has gone from 75% to just 9%.
Nothing even close has happened under anti-free trade regimes.
And if that’s too abstract, just ask yourself which country you’d prefer to live in – free-trading New Zealand or protectionist Venezuela.
Or compare the free-trading United States in the 1980s versus the Soviet Union. How did that rivalry turn out?
The competition isn’t even close. The free traders are all richer, healthier, and happier than the stale statist economies. They’re also more secure. As Bill explains it…
You can live in a win-lose economy. But you end up living in poverty and backwardness.
And remember, wealth is what gives you the military and technological ability to blow the other guy sky-high. So, if you allow too many win-lose deals to creep into an economy… you’ll also end up walking on all fours with the win-win guys throwing you scraps of food.
It’s called Win-Win or Lose. And from what I’ve read of it so far… it’s one of Bill’s best.
I can’t even say Bill’s book is hot off the press. It’s so new it still hasn’t gone to print. Right now, it’s available only in digital form.
We’ve already shared the full digital copy with paid-up Bonner-Denning Letter subscribers here.
If you’re not a subscriber, we’ll be sure to let you know when it’s available to buy. But you don’t have to wait that long to start reading…
In the sneak peek we’ll share tomorrow, Bill lays out the case for why free trade is a win-win deal… And why trade taxes and tariffs are a losing deal over the long run.
So look for that in your inbox tomorrow at 5 p.m. ET.
The socialism versus capitalism debate we mentioned earlier is heating up, after reader Alden T. said…
The ONLY purpose of capitalism is to make a profit. There is no other criterion. Playing fair is not an integral factor in how capitalism works…
While I certainly share the view that our government, irrespective of party, only distorts the economy, that is because we have the most corrupt country on Earth. But what is obvious bribery elsewhere is called campaign financing here. We have legalized our corruption.
Here’s another inherent flaw in capitalism, and every person in the street knows this. It takes money to make money (that’s why it’s called capitalism). Ergo, the rich, who have the money to make money, get rich, and the poor get poorer.
But not everyone agrees with Alden…
I think Alden T. should go and live in China for a decade to gain some much-needed perspective.
– Dave P.
Okay, I am finally going to join the brawl and give my two bits. The way I see it… the only way socialism can work is to take away my equality and respect, and then replace my rights with their opinions. The only way that capitalism can work is to give me that equality and respect, and then make the rule of law apply equally to everyone.
Let me say this again but a little differently: If you think you and others have been cheated, you are right. You have been, and so have I. However, it was not capitalism that cheated you. It was someone that decided you were not an equal, therefore, they did not have to treat you with respect and took advantage of you. Give it whatever title you want. It doesn’t matter why because lack of respect is the real disease.
Inequality is not the flower of capitalism. What you see are flowers that grew over the years from the seeds of disrespect. And equality and respect are not the flowers of socialism. They are the essential seeds to grow and nourish capitalism. How do you get rid of the disrespect? Apply the rule of law to everyone.
– Terri M.
Meantime, our recent Cut on America’s growing Surveillance Society is getting readers thinking…
It’s pathetic how the American people will give up everything to the state under ruses proposed by the parasitic, power-hungry scum. No one even raises a peep about the corruption of our intel agencies spying on Americans. It’s sad but we’re too far gone.
– Jim F.
You’re in luck, Jim. We’ll be returning to that theme later this week… with a look at what’s happening in the “laboratory” for the Surveillance Society – China.
Until then… Do you agree with Terri M. that socialism only works if we take away respect and equality? What do you make of our argument for win-win deals?
As always, shoot us an email at [email protected].
May 7, 2019