Monday, September 6, 2010

Capitalism -- It's Not Just For Rich People, You Know

The magic of capital.

The meaning of the word "capitalism" has become distorted and the concept demonized. Capital, thanks in no small part to Karl Marx and his half-wit followers, has become (erroneously) synonymous with great sums of money, controlled by greedy white men, which serve only to exploit honest "working families".

But capital is nothing more than the raw materials and tools that help man produce goods more cheaply and more efficiently than he could by himself. For example, man once had to wade into streams and catch fish with his bare hands. But with the invention of the pole, string and hook; he was able to increase his production while decreasing his effort. He was employing capital.

In this case, subsistence farmers in Africa are saving part of their annual produce and investing in a foot-operated pump which will irrigate much larger plots of land than the old method of carrying buckets. They are employing capital to lengthen the production process making it more productive and profitable. They are capitalists.

That's a good thing.

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