Hi, my name is Doug, and I am a capitalist. I believe that capitalism has helped to make our country great and is a major contributor to creating the largest, most robust and most inclusive economy on the planet. Lately, our economic system has been unfairly criticized. One U.S. Congressperson attempted to redefine capitalism “at its core” as “the pursuit of profit at all human, environmental, and social cost”. This was right after she said people “translate them (socialism & capitalism) into meanings they don’t mean.” Wow!
I am a capitalist because, “at its core”, capitalism requires that I add value to someone else’s situation before I get paid. That could mean I provide a product or service that solves a problem or enriches their lives in some meaningful way. The more people I can help, and the more people whose lives I enrich with my products or services, the more I will get paid. Moreover, the better my product or service, the more customers and clients I will attract and the more people I can hire. The late great Zig Ziglar said it best: “You can have everything in life you want, if you will first help enough other people get what they want.” That is capitalism at its core.
The central goal of capitalism is profit. The goal is achieved by adding value to the lives of others. The goal of socialism, on the other hand, is to control and distribute property, products, and wealth equitably so that everyone has the same regardless of their contribution to its creation. Socialism would say that the factory worker is worth the same pay as the factory owner/creator.
A byproduct of capitalism is an increase in character. Capitalism creates character by allowing people to overcome adversity. Overcoming adversity makes us stronger, wiser, and more disciplined. Socialism, on the other hand, attempts to keep people from facing adversity. Socialism would say I am a victim because I took out a student loan and that other taxpayers who did not go into debt, or did not participate in higher education, should help bail me out. Yet we can read countless stories of teachers, social workers, nurses, etc. who have paid off their student loans by working extra jobs. To a man or woman, they are proud of this accomplishment, wiser about debt, more financially disciplined, and less likely to go back into debt as a result. Overcoming adversity builds character. Getting bailed out from our mistakes is a missed opportunity for us to grow. As I look back on my life, it is the adversity that I have overcome that has shaped me into the person I am today. In hindsight, though it sucked at the time, I would not trade those difficult times for anything.
I also understand that no system involving humans is perfect. There will always be people who will try to beat the system and acquire wealth without creating value. In a capitalistic society, these people have a reasonable chance of eventually finding their way to prison. In a socialistic society, on the other hand, these people are usually in control of production, distribution and operation of goods and services for the “public good”.
Our Social Security system is just one example of the results of government controlling wealth. In our current system, if a 16-year-old worker started a job for minimum wage ($7.25 per hour), that worker would make $14,500 annually with 2 weeks of unpaid vacation. Let’s assume this worker never got a raise and worked until the age of 66. Between the worker’s social security contribution and the employer’s contribution (12.4%) that worker would be contributing $150 monthly to social security. At retirement the worker’s social security benefit would likely be between $1,200 and $1,500 per month. After the worker dies, the government will keep whatever is left and the worker’s heirs will get nothing.
On the other hand, if that same worker was able to direct the $150 per month contribution to a safe growth mutual fund or group of mutual funds and only earned 10% annually, which is less than the average annual return for the stock market, that worker would retire with $2,600,000. This amount in CDs or 10 yr Treasury Notes would generate over $10,000 per month to live on without depleting the $2.6 million. When the worker dies, he or she will leave behind a nice inheritance for their family. Of course, this is an absurd example because who in the world would ever work for 50 years and never get a raise? Imagine a world in which every retired person was a multimillionaire.
The politicians who argue against the privatization of social security use the “someone could lose their money if it were privatized” excuse. That is, of course, true. Someone MIGHT lose their money if it were invested privately. However, as you can clearly see in our example, sending it to the government GUARANTEES that everyone WILL lose their money.
We could go on and on with countless other examples, but private control of wealth, property and products will always be better than public control. This is why I am a capitalist.
In the end, capitalism isn’t just an economic system; it’s a path to growth, freedom, and opportunity. It pushes us to innovate, adapt, and build better lives – not just for ourselves, but for others, too. In a world where value is earned, not handed out, we’re challenged to rise above, to overcome, and to contribute. I trust in people’s potential to create value, not in any government’s power to distribute it.
I believe in the private ownership of the means of production, distribution and operation of goods and services for profit. I believe in private property ownership and private property rights. I believe in competitive markets and that competition makes goods and services better and cheaper. I believe that overcoming adversity builds character, and I believe in equal pay for equal productivity regardless of race, creed, sex, etc.
This is why, no matter what, I will always be a capitalist.
Doug Molyneaux, CCIM, is the principal broker for the Molyneaux Group, a commercial real estate investment brokerage firm based in Biloxi, Mississippi. He advises owners and investors of commercial income properties on how to maximize their investment yield and mitigate their risk. He can be reached at 228.246.9757 or by email at [email protected]. Learn more at www.molyneauxgroup.com. In addition, Doug is a commercial real estate performance coach at The Massimo Group, North America’s foremost coaching firm focused on the commercial real estate community. Learn more at www.massimo-group.com.
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