Cathy Bodin made a good point in her recent letter in how small businesses and citizens support the country but are unemployed. However, I see things a bit differently than she does about “unfettered capitalism.”
I’m not sure what she means about that. Her argument related to Jay Ambrose’s column and stats about income is limited and ignores the interconnectedness of an economy and the role of a central bank and the welfare/warfare state in which we live. What would unfettered capitalism really be? Would it not have real money (based on a commodity as in our Constitution), instead of fiat currency based on nothing, oops, the good faith and credit of the U.S. government? Would there be any regulations? Would government be so authoritarian that it denies our basic constitutional rights to freedom of assembly, speech and worship?
I agree with her that our economic system is “heavily skewed against the non-elite across the nation.” But, I argue that we have a hampered economy. She notes that the average low-income household can’t make ends meet, so true. But if interest rates are kept artificially low by the central bank and thereby all local banks as well, who gains by saving? We are encouraged to borrow instead of save.
If inflation is 2% and your bank is paying you 0.01% on your savings account, why bother, as your money keeps losing value and the value of your income is outpaced by inflation. Is that unfettered? Why could Cheesecake Factory complain that with the government shutdown of the economy, they could not pay their rent? A central bank creates money out of nothing, gives it to the major banks, who loan it to major corporations, who buy back their stock to raise their stock price only to see it fall as the value of the market falls. Wasted.
We have a government that creates legislation (please don’t confuse that with true laws) that sends a paltry $1,200 to an individual but millions to banks and its crony capitalist supporters.
And as far as “sharing” goes, wouldn’t that be voluntary in an unfettered capitalist society? But if it means taxation, then isn’t that just taking by the force of government from one person and giving it to another?