We’re taught that capitalism is E • V • I • L. It’s not, really. Unless government gets involved.

See, business has to function under the rules and laws that government makes. So they try to influence and make those decrees in favor of the business. Politicos and bureaucrats have incentives to protect “their” companies and corporations. It’s a vicious cycle and it ends up with crony capitalism or mercantilism.

There are three things together that prevent this. Absolute uniform rule of law. Competition, And customer choice. These three things are the basis for the free market. The free market doesn’t have government regulation.

Yes, you should read that again.

The free market doesn’t have government regulation.

The free market is voluntary transactions between consenting adults.

I choose to buy. Or not.

You choose to sell. Or not.

And if I choose to buy, you should offer me some benefit that I can’t get from the guy down the street.

You keep me happy, I buy.

If I am not happy with what you sell, I don’t buy from you.

This means that no matter who I buy from, the product or service is better today than it was yesterday.

That’s another thing you should really read again.

The product or service is better today than it was yesterday.

Things get better because that’s what people choose.

That is ONE OF THE MOST IMPORTANT IDEAS IN HUMAN HISTORY. And no, I am not exaggerating.

Things get better because that’s what people choose. If the things don’t get better, then people choose something else.

This applies to everything we’ve tried so far. Socks. Spinach. Smartphones.

The price drops. The quality goes up. It takes less human effort to make. And availability spreads.

Now here is what you won’t be taught.

Abundance brings charity.

Abundance encourages people to make the world better.

And unfortunately, abundance brings an overwhelming desire to meddle in other people’s lives.

Which means taking away those people’s choice. Because of course you know what’s best for them. Even if they don’t. Even if they want to be left alone. Even if they can work it out for themselves. Because you know best.

And because you know best for those poor people, you know which companies can best provide for them. So those companies should be protected and defended. Since all this costs more than you expected, then it’s only natural that some of your friends and neighbors should give a little extra. Not everyone of course, just the ones who can afford it.

Or maybe those who have done something nasty.

Or maybe those who have said something that you disagreed with.

Suddenly we don’t have a free market anymore. We’ve got “elites” deciding who is going to get favors.

And the economy starts slowing down. Innovation begins to stall.

All because we gave up on the uniform rule of law.

All because we suppressed customer choice.

All because we outlawed completion.

Tags: uniform rule of law ∙ choice ∙ completion ∙ elites ∙ know best ∙ abundance ∙ meddle ∙ classic