Dan Mitchell article Defending Capitalism, Part II

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Defending Capitalism, Part II

Last week, I shared Part I of my discussion with John Stossel about “capitalism myths.” Here’s Part II.

In the first video, we discussed three myths about free enterprise.

  • Myth #1 – Capitalists get rich by ‘taking’ money from others.
  • Myth #2 – The rich getting richer, and the poor getting poorer.
  • Myth #3 – Monopolies destroyed the free market.

Here are the final four myths.

Myth #4: Free markets create unsafe workplaces.

Proponents of government intervention often claim that greedy capitalists will skimp on safety in order to get more profits. To support their argument, they cite data on how workplace deaths have declined since the Occupational Safety and Health Administration was created.

That data is accurate, bu what they fail to mention is that workplace deaths were falling at exactly the same rate before OSHA.

This is because wealthier societies, created by capitalism, have both the capacity and desire to invest more in safety.

Myth #5: Capitalism created evil Robber Barons.

During the 1800s, the United States experienced an “industrial revolution,” and many people became enormously wealthy (though only by the standards of that era).

The anti-capitalist crowd asserted that these people were “robber barons” who profited at the expense of ordinary people.

Yet this was the era when the nation evolved from agricultural poverty to middle-class prosperity, as shown by Oxford University’s Our World in Data.

Notice how per-capita economic output grew especially fast in the last half of the 1800s when the industrial revolution was in full swing.

Myth #6: Capitalism just isn’t good for us.

This myth is based on the stereotype that capitalism is a soulless and materialistic system.

And there certainly are some people who are so myopically fixated on their personal wealth that they don’t properly enjoy the intangible benefits of family, community, and leisure.

But that’s a failing of human nature, not of markets.There surely are plenty of materialistic and soulless people, after all, who use socialism to get wealthy.

The key difference, as the great Walter Williams noted, is that you have to serve other people to get wealthy in a capitalist society, whereas you use government coercion to get rich when government controls the economy.

Myth #7: Capitalism will eliminate our jobs.

It’s certainly true that jobs are destroyed by capitalism. As noted in the video, the personal computer destroyed typewriter jobs.

This is the process of “creative destruction” and we should all recognize that it can be very bad news for people who have careers that are upended by technological change(such as candle makers when the electric light bulb was invented).

What’s special about capitalism, though, is that this process is what makes all of us richer over time.

Even the children and grandchildren of people who lost their jobs.

The bottom line, as I said to conclude the video, is that, “No other system, anywhere in the world, has ever come close to capitalism’s ability to generate mass prosperity.”


Long-Run Policy Lessons from the Coronavirus Pandemic

Between March 2020 and January 2021, I authored a five-part series (see herehereherehere, and here) on how big government hindered a quick and effective response to the coronavirus pandemic.

In this discussion with Brad Polumbo, I summarize some of my key points.

While I criticized the dismal performance of the FDACDC, and WHO, I also explained that there are costs and benefits to any approach.

I largely focus on the deleterious impact of government regulation and intervention, but I mentioned in the discussion that a laissez-faire approach has potential downsides.

My argument is simply that markets, on balance, will produce better outcomes.

For instance, Brad and I discussed how government regulators at the Food and Drug Administration did something good many decades ago by prohibiting thalidomide (which led to birth defects), but we also mentioned that academic research showsthat our regulatory apparatus – on net – leads to bad outcomes because of lengthy delays in life-saving and live-improving drugs.

And we shouldn’t forget that the current system makes drugs far more expensive.

There are two other parts of the interview that merit special attention.

  • First, I mention that private companies should be allowed to require “vaccine passports.” I’m not saying they should, but I believe in property rights so it’s not the role of politicians to interfere in that choice.
  • Second, politicians should have adopted a more hands-off approach to mandatory lockdowns. This is not an argument against social distancing, masking, and other prudent behaviors, but mandates were largely unnecessary (and, in the case of what stores were allowed to operate, pointlessly discriminatory).

And I should have mentioned that politicians often didn’t follow the rules that they imposed on the rest of us.

P.S. The silver lining to the pandemic’s dark cloud is that we got some clever humor (see hereherehereherehereherehereherehere, and here).

P.P.S. Actually, there’s a second silver lining. There’s been a lot of progress on school choice this year, which is partly a response to the self-serving actions of the government school monopoly during the pandemic.

P.P.P.S. There may even be a third silver lining. As mentioned in the discussion, I’m slightly hopeful that politicians and bureaucrats have learned that we need to set aside regulations and red tape, at least during emergencies. Heck, maybe they’ll even apply that lesson more broadly!


A.F. Branco’s cartoons are in high demand as he slays dragons of Leftist Lunacy with his razor-sharp humor. He has appeared on Fox News, “The Larry Elder Show,” “The Lars Larson Show” and more. Read his full bio here.

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Where does Branco get his news from? Yes, Fox News, but also the BBC, the Drudge Report, CNN, CBC and NPR.

Copyright 2020 Creators Syndicate Inc.

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A.F. BRANCO February 13, 2021A.F. BRANCO February 12, 2021A.F. BRANCO February 11, 2021A.F. BRANCO February 10, 2021

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A.F. BRANCO February 17, 2021A.F. BRANCO February 16, 2021A.F. BRANCO February 15, 2021A.F. BRANCO February 14, 2021A.F. BRANCO February 13, 2021A.F. BRANCO February 12, 2021A.F. BRANCO February 11, 2021A.F. BRANCO February 10, 2021

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