Global Free Markets Increase Prosperity! (Karl Marx was wrong)
Writing by abuhatem on Saturday, 8 of December , 2007 at 4:13 pm
Larry Kudlow, host of Kudlow and Company on CNBC, is a very intelligent man. He had a very well written blog entry on Tuesday concerning the failure of the spread of the centrally planned economic system throughout the world.
History has shown the opposite of what Karl Marx said to be true. Instead of “the peasants rising up against the exploiting rich,” the entire world has seen that - quite simply - the socialist planned market model does not work. Command economy has been an abysmal failure, and even in the sense of “social justice,” it fails - by making the populace poorer, with higher rates of inflation, and massive deficits.
Instead of peasants and “the working class,” rising up against the bourgeois, they have joined forces with them. The free-market economic model has spread throughout the world giving a rise in standards of living throughout the world. The more people see the benefits of free-trade, whether domestically or internationally, they participate more. Even those inclined to some sort of “social justice,” in the economy adopt Keynesian economic models, or mixed economy welfare states because of the failure of the socialist system.
Free trade gives more opportunity for all, it makes prices cheaper, and creates better and more innovative products - based upon the needs and wants of the populace - which improve the life of the entire populace. Ludwig von Mises made this point decades ago in Human Action, when he stated that free-market economics have improved the quality of life of the poor tremendously - just look at us now compared to 100 years ago.
The best system in helping the poor is not to force others to be taxed extensively, create extensive government bureaucracy, inflate money while curbing unemployment. And most of the world has understood this - whether democracies or autocracies. Free-market economies are growing, free-trade is increasing, product price is decreasing, innovation is increasing, and global economic opportunity is at its peak.
Kudlow’s Money Politic$: Twenty-Five Years of Prosperity (and more to come)
Across the globe, free market capitalism has been triumphant over the socialist-planning model. Karl Marx was wrong; Milton Friedman was right. Put another way, the central planning model did not work whereas the free market model did. Over the past two and a half decades, the capitalist model has spread like wildfire around the world, and it shows no sign of pulling back. In China, India, Eastern Europe, and Russia, however imperfectly, the newfound principles of free-market capitalism, economic opportunity, and “liberalism†in the traditional sense of that word are being applied and working beautifully.
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Category: Economics, Political philosophy
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