UPDATE: (BTW, doesn't it makes more sense -- if somewhat graphically awkward, I admit --- to put updates at the top of a post so that people who have already read the initial post will have a higher likelihood of actually seeing the update?)
Outer Life offers an interesting comment We're All Capitalists on this post of mine. I tried to clarify my larger point there and will continue here:
I guess all I am trying to get to is that there is a big difference between appreciating capitalism (which I surely do) and loving it unreastically and without qualifications (which I don't.) Capitalism is a tool to organize the relations between people. I think it has an awful lot of positive things. But it is not, for me, an article of faith, of belief. I "believe" in capitalism, just as I believe in a well-tested saw, as a tool and I am fully able to recognize when it can and cannot do the job. The point of my post is that I wonder how much first-hand experience with capitalism it takes to be able to see its flaws? And whether many enthusiasts actually have that experience? I am very very glad to read (below) than at least some do.
But when I look at the larger world -- at a Milton Freidman or a Bartley at the WSJ -- and I read repeatedly of the glories of the market and how everything will be solved with market-based solutions, well I have to remember that most of these academics and journalists have only been employees of capitalists and their book-learning is nice and stimulating but I wonder if their "faith" is based on seeing it from a distance, where so many things look better, and so must be taken with a grain of salt. As one commenter wisely suggested (at least I think this was the gist): "Capitalism's a bad system but everything else is far, far worse."
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THE ORIGINAL POST:
I was just reading one of my favorite blogs and found --- not unexpectedly --- a vitriolic diatribe against socialism. I don't mind that, particularly, though of course by the same token I have no idea exactly what they mean by "socialism." (And that particular post involved British politics that it went right over my head; so this post here is not a comment -- that's why no link -- but a more general rumination.)
Capitalism has a lot of things going for it but I am resigned to state intervention in markets (e.g. and at the very least "weights and measures," "enforcement of contracts," "nuisance law," "honest (not counterfeit) currency," etc etc.) to help perfect those markets. I very much like free enterprise but I do not believe it possible except within, bitter irony for some, a regulatory state. The meaningful debate to me can only be about the degree of regulation.
But what I wonder about --- and so many right-wing bloggers seem to speak their piece in a manner which raises this idle question in my mind --- well what I wonder about is how many of them have actually made any money as capitalists? Or even lost money as capitalists? (That's also an important milestone.) I don't mean to pry into their personal affairs but I am simply curious. They seem to idealize capitalism so much that I wonder if they have really had much contact with it.
I don't mean in terms of inheriting wealth. You'd be a fool if you didn't love capitalism if you'd just received a pile from Grandpa Horace. But of course your own practical knowledge of capitalism might still be pretty slim, even if you are a beneficiary of it, just as those "welfare moms" in their Cadillacs probably don't really understand "socialism."
And I don't mean experience with capitalism by working for a large institution, either. Sure that's capitalism but the institutional context so insulates the individual -- and the higher the job title is the better the insulation -- that I can hardly consider the president of Exxon a real capitalist. He is an employee & bureaucrat as surely as if he worked for the Environmental Protection Agency. (And I don't condemn him for it either.)
No, I wonder how many of the fervent free-marketeers out there in right-wing blogland actually have bought or sold or organized anything with their own money. And not just once or twice but on a continuing basis. I am not saying that they haven't; but I just get the sense that they idealize the process of the marketplace -- of the vaunted "market solution" -- so much that it seems as though they might have read more about capitalism than done it.
Now even if some enthusiasts don't have any direct experience with free enterprise, that doesn't even remotely make their opinions useless -- in fact they could be quite stimulating -- but it simply puts them in a different perspective for me.