One of the elements of a capitalist system that induces purple-faced rage amongst statists and progressives is the existence of profit. This residual – the amount left over once an entity has deducted its costs from its revenue – is said to line the pockets of greedy shareholders while exploiting labourers and consumers.
During an economic malaise one of the endless reams of statistics to which pundits glue their eyes is the number of jobs that are either created or destroyed. The state makes “job creation” a central plank of its economic policy to put people back to work, and the impression that more people are being hired and fewer fired buoys their hubristic impression that we must be on the road to recovery.
The belief that economic progress is boosted by consumption is based upon the kind of misunderstanding that could be made only by intellectuals – the product of theorising that is completely detached from the common sense that everyone else possesses.
Author’s Note: This is the first in a series of short posts which will seek to rebut popular, but wrong, economic beliefs.
One of the positive indicators of our so-called economic recovery bandied about not only in the media but also by our monetary lords and masters at the head of central banks is the idea that rising prices are a sign of economic recovery. This mistaken belief is part of a wider myth that views the economy as little more than a giant number – a number which, if going up, means things are good and getting better, and if going down means the situation is bad and getting worse.
In my most recent article for Free Life, I discussed a number of ways in which libertarianism differs from many statist philosophies at the fundamental level. One of these ways is the fact that it is more accurate to regard libertarianism as a behavioural ethic rather than as a grand, political system. This present article will echo and develop this particular theme in order to lay some basic groundwork for a libertarian political strategy.