Free Markets, Free People

Deepak Chopra

Misunderstanding Capitalism

Deepak Chopra has, for some reason, come to be viewed as an intellectual by many.  For the most part I don’t get it.  

I’m reminded why when I read this Chopra statement on “The Mellow Jihadi” (disclaimer: The Mellow Jihadi does not agree with Chopra’s statement below):

Capitalism prevails as a system that once vied, supposedly, with Communism for world dominance, yet its deep flaws remain. Three come to mind. Capitalism discourages equal access to wealth, leading to enormous gaps between rich and poor. The free market lacks a conscience, giving rise to inequalities of education, health care, and job opportunities. Finally, capitalism if unchecked promotes corruption, both economic and political.

Capitalism is really given a bad rap here.   And it is mostly in word usage.  For instance “Capitalism discourages equal access to wealth”?

No.  It doesn’t.  What it requires is you earn your wealth, not have it handed to you.  I.e. it pretty much encourages hard work, sacrifice and innovation and rewards it with wealth if all goes well and people like what you do and want to buy it.   But the “deep flaw” here is you – the individual – actually have to initiate the action, do what is necessary to properly prepare yourself, work your butt off and hope you have done sufficient research and work to make all that pay off.  But it certainly doesn’t “discourage” anyone from earning wealth, it just makes no guarantee that all will share equally in wealth.  I see that as a feature, not a bug.  The enormous gaps between rich and poor can usually be traced back to enormous gaps in preparation, work ethic, and ability.  Btw, Mr. Chopra, in case you haven’t noticed, nature isn’t very good about “equality” either – when it comes to intelligence and ability.  Is that a “flaw” or reality?

Chopra goes on to say that “the free market lacks a conscience”.   Well that’s a straw man if ever I’ve seen one.  It’s a bit like saying a rock has no feelings.  A market operates without feelings, to include a conscience.  But that doesn’t mean that the society or culture in which it operates can’t do what it feels is necessary to ameliorate certain “inequalities” if it so desires.  That has zip to do with the market(s) other than they’re probably the fastest and best means to earn the wealth necessary to apply to the desired solutions.  It simply doesn’t follow logically that the functioning of markets somehow inherently means inequality of education, health care and job opportunities.  In fact history points to precisely the opposite being true.

Finally, Chopra, like many opponents of Capitalism, confuses the crony capitalism of today with actual Capitalism in its pure form.  Crony capitalism does indeed “promote corruption, both economic and political”, and we’re living through that today.  But Capitalism as a economic system doesn’t encourage either and, in fact, does its best to work around it via the market mechanisms that send the signals that encourage consumers to seek substitutes and/or alternatives when something doesn’t smell right.   But when government interferes, sets artificial bars to entry, writes legislation that favors large businesses that support powerful politicians, that’s not Capitalism.

The Mellow Jihadi quotes Winston Churchill with one of the better rebuttals:

The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.

Enough said.

~McQ

Twitter: @McQandO