He explains how capitalism, and only capitalism, can and does make us prosperous.
Alas, he also shows how rare this perspective is by being so rare himself.
How did he become the leader of Argentina?
Or lead any political party?
Amazing.
There is only one way a community can become prosperous and that is if the government backs away and lets those who wish try to become personally well off by producing goods and services for their fellow citizens.
Nothing else works. The government and the rest of the community must let the productive get on with their putting together their productive efforts and the government must stand back and let them get on with it.
This is what went on in the West from around 1750 till around 2000. There was plenty of grumbling and the rise of socialism to try to stop it but it did succeed. The process has now been brought to an end although some of the previous momentum does remain.
But it’s the only way it can occur, While the rest of the population resents the accumulation of personal wealth by these entrepreneurs, neither the elites, nor the government tries to stop entrepreneurial inventiveness but just lets it happen.
While it might continue at the present, there are now too many who wish to bring it all to an end. and have worked out how it can be halted. The vast majority will not let others become rich through entrepreneurial effort. I may be wrong but if it has been halted, it won’t come back for a thousand years and perhaps more.
Governments will not leave things alone nor will the population let them.
I came across this economic comment:
Here is the truth about the Biden economy: it is barely growing (real growth in the last quarter was 1.1 percent) despite massive federal stimulus.
That is so normal that almost no one will see its flaw. Government “stimuli” will slow an economy down not cause it to grow. This was once widely known. Now it is not known at all. Such a bankrupt understanding of how an economy works.
It’s also so precise.
How much is $31 trillion? Written out, that comes to 31,000,000,000,000, or 31 × 1012. A mere one percent of that is $310 billion, which was the federal deficit alone in 2019.
For more, see: https://the-pipeline.org/the-column-repeal-the-16th-amendment
The article blames it on Modern Monetary Theory but no one ever looks at modern economics which bases growth on demand. It’s Keynesian theory with its underlying premise that growth occurs because of the demand side. It comes from Y=C+I+G and without that there’s nothing left.
If you want to understand how economies work never NEVER think of economic activity in terms of money. Economic activity depends on resources – land, labour and capital. If you think in terms of money you will never get it. Money is sometimes scarce but productive resources always are.
Activity isn’t intended to create “jobs”, it’s to create useful products that can be produced at a profit.
That’s “anyone for tennis” during inflationary times.
And if you think that’s clever, well I thank you, and if not you can blame it on Victor Borge.
And how can productivity go up if we don’t leave it to the private sector?
Cannot happen. And as long as “growth” is based on the public sector neither value added per employee (ie productivity) or real wages can go up – on average that is – then earnings will collapse although those who get paid by governments will do all right relatively.
It’s going to be bad for a long long time, longer than you can imagine. Average earnings will simply have to stagnate.
Law of Markets 