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Moving Beyond Capitalism

George Gilder

Posted February 09, 2021

George Gilder

With the advance of the Biden Administration’s over-the-hill gang of men and women in masks, gathering in Washington and preparing to rob the Central Bank again, we are moving beyond capitalism.

Donald Trump initially ran a mercantilist Administration, permitting capitalism within our borders alone. But once he succumbed to the COVID panic, claiming to save “two million lives,” capitalism in the US was mostly eclipsed by public health autocracy. The masked men took over.

Oh well, we had a pretend pandemic and ended it with a group of moderately effective vaccinations. I got my first dose of the Moderna RNA confection last week.

But the governor cabal apparently thinks it won’t work. Charlie Baker of Maskachusetts says we still have to wear our masks even after our shots, and even cross-country skiing. Governor Ned Lamont of Connecticut banned road races just before my Norfolk 10 miler.

Now capitalism and freedom are permitted neither inside nor outside our borders. You now have a better shot at beginning a new company in Communist China than in the United States, and taxes will be radically lower.

When political campaigns are funded by corporations, unions, and non-profit goo, the future is ruled out.

A Real Capitalist Economy

The Biden Administration is devoted chiefly to the cause of CO2 suppression, a religious concern that conforms in no way to capitalist economic truth. If Biden triumphs in every respect, the US will achieve an energy system and power grid decisively inferior in every way to our current system.

Windmills and solar panels are not energy sources. They are totem poles and druidical sunhenges that occupy more of the scarce surface of the planet than any actual energy source. They despoil the environment and disrupt and complicate the energy grid.

The only way to pay for them is to raid the central bank and subsidize the green rites.

But if the government controls, guarantees, channels, or directs investment, it is not capitalism. Pivotal to the investment process is interest rates.

For capitalist entrepreneurs to control capital, interest rates must reflect its real cost rather than merely the cost of printing money. Otherwise the money printers will dominate investment.

A real capitalist economy is not an incentive system, whereby corporations are manipulated by rewards and punishments in a closed loop where they then fund the politicians. Capitalism is an information system in which every business venture is the falsifiable test of an entrepreneurial idea.

If corporations pay politicians to guarantee their investments, it is just another form of economic decline: socialism in jeans.

Nothing we think we know about the economy — its basic statistics such as Gross Domestic Product (GDP), its growth, its real interest rates, its rate of innovation, and its performance relative to other nations — is remotely meaningful today.

When money is merely a figment of political policy, it cannot serve as a measuring stick for value.

Turning to Time-Prices

Soon to be published are the visionary post capitalist findings of Marian Tupy of Saint Andrews in Scotland and Gale Pooley of Brigham Young in Honolulu. These two economists are extending Julian Simon’s cornucopian legacy on resources and population into the new century.

Simon argued that material resources are essentially infinite and the critical scarcity is human beings.

To Simon, humans were not essentially mouths consuming resources, but minds, creating them. In their new study of the prices of 50 commodities crucial to human life, Pooley and Tupy show that with every 1% increase in population (more minds) comes a more than 1% drop in prices. In other words, resources become more abundant as the population grows.

Simon is the most important figure of 20th century Economics.

However, even I was startled by the radical implications of Pooley and Tupy’s findings, which reaches far beyond the issues of population and resources and affect every issue of economic measurement, performance, and policy that agitates our politics and prospects today.

More on this tomorrow…

Regards,

George Gilder
Editor, Gilder's Daily Prophecy

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