In defence of capitalism, the most virtuous economic system yet devised

January 23, 2012 10:42

Under the various forms of corporatism tried by fascist and socialist regimes, by contrast, someone else – generally a state official – gets to allocate the goodies, guaranteeing favouritism and corruption. – MEP Daniel Hannan



By MEP Daniel Hannan at The Telegraph



In an open market based on property rights and free contract, you become wealthy by offering an honest service to others.  I am typing these words on a machine developed by the late Steve Jobs. He gained from the exchange (adding fractionally to his net wealth) and so did I (adding to my convenience).


Capitalism harnesses greed to socially productive ends. The way to become rich in a free economy is to give others what they want, not to suck up to those in power.


That’s not to say, of course, that malpractice is unknown in capitalism. Man is fallen and, under any system, some will give in to temptation. It’s just that in a state-run economy, corruption is systemic and semi-legal. Indeed, the most egregious forms of wrongdoing in our existing Western economies tend to be the ones that involve governments: lobbying for improper favours, securing taxpayer bailouts and the like.


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