Capitalism for Dummies (and Socialists)

The whole notion of capitalism is that those with capital are incentivized to invest it in order to obtain a profit. If profits are outlawed or significantly reduced through confiscatory taxation, the incentive to invest is reduced or eliminated. If profit is forbidden, I have no incentive to invest rather than consume. Why would I delay gratification and take on risk to plant a field or build a factory if I don’t stand to make a profit by doing so?

Tariffs, Pickpockets, and the Nationalist Snake in the Moral Grass

Protectionism, as it is misleadingly known, has always been an insider’s game, a political gambit aimed at enriching those to whom the government is especially beholden or seeks to seduce at the expense of other people. Incumbent producers who produce products on which tariffs are imposed succeed in repelling competition by force of the government’s customs officers, which is to say that they succeed in increasing their profits by force, not by offering consumers a better deal.

Do Two Wrong Taxes Make a Right?

Imposing tariffs in order to protect domestic producers who are unjustly harmed by taxes or regulations, as Bastiat noted, simply shifts the harm done by these taxes and regulations from producers to consumers. But why should consumers rather than producers suffer this harm? Some people must suffer it, and it’ll be either the unjustly taxed and regulated producers (in the case of no protective tariff) or their consumers (in the case of a protective tariff).

When Civility Isn’t Enough

On the memo line of every check I sent to the various “revenue” gangs, I wrote “extortion payment” beside my account number. The State of Colorado never seemed to notice, but the woman in the city “revenue” office noticed, and it really bothered her. She repeatedly called me to complain or get an explanation. A time or two she even came into my store to confront me face to face. I was nice. I was polite. I was civil. But I stood my ground.

A Moral Challenge

If government is really as necessary as most people think, then it ought to be quite simple to convince others to support it (or at least support as much of it as they believe is necessary). Instead of threatening people, educate them. Convince them. Demonstrate why they ought to contribute to government. Threatening them with force is not a way to answer their arguments against paying.