Capitalism AND Small Government Are Winners : The People Have Spoken

Did you ever wonder why the progressive socialist in this country and elsewhere in the world that fight so hard to eliminate capitalism? Well wonder no longer, capitalism if allowed to flourish will destroy socialism.

And yet untold millions still believe dependency and government control is best for prosperity and future development. And when it never materializes, the population continues to believe in so many areas, like the United States.

Our election yesterday saw the Senate change hands from those that believed socialism was the future to those that believe America is a much better place that believe capitalism is the future.

Our 235 year history of success proves capitalism is a winning strategy. And as the election last night shows so do the American people.

Countries Boost Incomes, Reduce Poverty with Capitalism
Source: Douglas A. Irwin, "The Ultimate Global Antipoverty Program," Wall Street Journal, November 3, 2014.

November 4, 2014

From 1990 to 2011, the percent of the world's population living in extreme poverty fell from 36 percent down to 15 percent. Why? Douglas Irwin, economics professor at Dartmouth College, says the answer is simple: capitalism.

The drop in poverty over the last quarter-century is the greatest drop in poverty in world history, writes Irwin, and it is due to the fact that developing countries implemented business-friendly economic policies. He offers a few examples:

• China took major steps in 1978 when it allowed private businesses and private agricultural plots while putting an end to the state's monopoly over foreign trade. Today, Chinese workers have much higher wages, and fewer of them are living in poverty.
• India began doing away with its government licensing system in 1991. The country had required state approval not only for people to start new businesses but to expand existing ones and purchase foreign goods and parts. Like China, the state has seen a resulting drop in poverty and a boost in wages.
• Tanzania has seen major growth after it did away with price controls and other socialist policies in the 1980s.

Capitalism, says Irwin, was given a bad reputation by Marxists who equated capitalism with the exploitation of workers. But Irwin says Adam Smith had the better description of capitalism -- a "commercial society" in which all men could participate in markets.

The growth of that commercial society has brought great improvements across the globe -- while 811 million workers earned less than $1.25 per day in 1991, that number had dropped to 375 million in 2013.