Saturday, December 16, 2006

Capitalism is the natural order

I wrote this on PM:Pub in response to a message lamenting what amounts to the rat race:

If people didn't have to satisfy needs---food, water, shelter, clothing, health---then they might be able to survive in a primitive barter economy, and even be happier (though that is debatable). Unfortunately, people do have these needs, and therefore they need to satisfy them some way.

Who is going to produce food, or clothing, or drugs---or whatever---for you without expecting to be compensated for it? And how are you supposed to compensate them? You could trade something you have for whatever you need, but what if you don't have something they want?

This problem was solved by the introduction of "money": an agreed-upon medium of exchange that, under ideal circumstances, provides a universal unit in which to measure the subjective value of everything. Instead of trading a cow for 20 bottles of Zanax, you trade your cow for some money, and then trade some of that money for the Zanax you need now, and keep the rest of the money under a mattress until you need to trade it for something else.

The rest of your complaint is pretty much related to how you dislike the notion of accumulating wealth in the form of money in order to get the things you need or want. You can be a luddite and head to the hills or join a commune, which could work out great... until you need something that the commune doesn't produce (e.g., a cancer drug), and then what will you do? What wealth will you own personally to trade for that thing you need?

The fact is that capitalism doesn't exist because someone in the past decreed, "This is the way it shall be." On the contrary, capitalism exists and ultimately governs our transactions despite all the despots, philosophers, politicians, and foolish idealists who fought against it for thousands of years. Capitalism isn't a constructed system: capitalism is how an economy will naturally order itself when people are left free to make their own choices about what things they value.

You can try to fight against it, but you will simply lose. Capitalism is a natural law like quantum mechanics, and to deny its correctness is to deny reality. The right way to deal with it is to figure out how you can most happily exist within its boundaries. If you're unhappy, then you haven't done this yet, so maybe you should try a different approach to life. :)

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