All Americans are Capitalists

How many Communists in your neighborhood? Any? How about Fascists? Feudalists? Mercantilists? Socialists?  Darn few. Maybe 10%. Combined. Tops.

The truth is, almost all Americans are capitalists. We vary by degrees within capitalism, but Americans are capitalists at our core.

Some Americans tend towards laissez-faire capitalism. This is the Chicago school, voiced by Nobel-laureate Milton Friedman. They believe that the lowest possible taxes and regulation generates the greatest national wealth. Despite all its flaws, Adam Smith’s “invisible hand” of the marketplace will inevitably produce the greatest social benefits. After all, free markets, not government, generate jobs – and good jobs are the best social program.

Other Americans tend towards democratic capitalism. This is the Keynesian school, voiced by Nobel-laureate Paul Krugman. They believe corporations will inevitably trash and trample the environment and individual workers unless constrained by government. America’s progressive stability in the 20^th Century allowed capitalism to flourish. By putting a “governor” on capitalism’s extremes, a democracy can create social growth beyond what unconstrained markets have historically produced.

Today’s Republicans and Democrats understand that America’s citizens are ultimately responsible for America’s economic growth. Both are capitalists. They vary only by degree and weight. Each wants economic growth. Republicans believe economic growth comes when employERS operate with few if any constraints. Democrats believe economic growth occurs when employEES benefit. Neither position is absolutely wrong or right. Reasonable people have, can and will debate this difference. It is as ancient as Hamilton versus Jefferson and as modern as Bush versus Clinton.

Americans share the same goal: economic prosperity. We embrace the same economic theory: capitalism. We differ only in approach: do the interests of the employer or the employee ultimately come first? This remains America’s political debate and divide.