Why Tariffs Are the Ultimate Hidden Tax

In our last post, we explored the differences between capitalism and mercantilism, touching briefly on how tariffs are one of mercantilism’s most enduring policy tools. Today, let’s dig deeper into these import taxes and why, despite their appeal to some, they ultimately undermine the prosperity that capitalism creates. It’s not hard to understand why tariffs remain politically popular. When a domestic industry faces tough competition from overseas, the appeal to “protect jobs” by imposing tariffs can sound compelling and patriotic. The benefits of tariffs are visible and concentrated. When a steel mill stays open because foreign steel now costs more, …

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Jensen Huang on Why Vision Beats Conventional Wisdom

Building a successful business in today’s economy means navigating constant change and uncertainty. But what if the secret to entrepreneurial success isn’t following market trends but creating entirely new ones? That’s exactly what Jensen Huang, founder and CEO of NVIDIA, has done in transforming his company from a graphics chip startup into the third most valuable company in the world. In a revealing View From The Top interview, Huang explains how entrepreneurs can find opportunities by solving problems that others can’t or won’t tackle. Watch the full video below to discover how he built a $2 trillion company by repeatedly …

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What’s the Difference Between Capitalism and Mercantilism?

In our previous discussions, we’ve explored what capitalism is (private ownership of capital with the freedom to use it as you choose), where it came from (organic human exchange), how it’s regulated (both by government and market forces), and how it affects issues like inequality and poverty. Today, let’s look at something different but related: mercantilism. Mercantilism is a term you may have heard before, but it’s not usually explained in-depth in most modern social studies classes. That’s because it fell out of favor among governments centuries ago—and for good reason. While it might have benefited certain groups of people, …

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Does Capitalism Actually Reduce Poverty?

In our last post, we explored the distinction between economic inequality (differences in opportunity) and economic inequity (differences in outcomes). We also touched on how trying to force equal outcomes can actually increase inequality of opportunity. But critics might reasonably ask, “If capitalism is so great, why is there still so much poverty in the world?” It’s a fair question that deserves a thoughtful answer. Let’s start with some perspective. For most of human history, extreme poverty was the norm, not the exception. As recently as 1820, approximately 90% of the global population lived in extreme poverty. By 1990, that …

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Magatte Wade on Cultural Branding: The Missing Piece in Global Business

As an entrepreneur, you know that building a successful business requires much more than just a great product. But have you considered how your brand might serve as a cultural ambassador? Senegalese entrepreneur Magatte Wade has built her career on this powerful insight, and her approach offers a fresh perspective for business owners looking to expand their impact. Wade’s journey began with a simple observation: while young people across developing nations consistently name America as their dream destination, it’s not because of economic opportunity—at least, it’s not the only reason. It’s also America’s powerful cultural influence through its brands. From …

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Does Capitalism Fuel Economic Inequality?

It’s common to want to divide the world into the “haves” and the “have-nots.” After all, it’s obvious that some people possess and earn more money than others. Some people live lives of luxurious indulgence while others have to choose between paying for rent or paying for medicine. It’s perfectly reasonable—and very human—to look at that dichotomy and wonder about the disparity. Is it something systemic that’s leading to these widely differing outcomes? If capitalism is supposed to reward hard work, why does a cushy desk job pay more than manual labor? Is capitalism itself to blame for what is …

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Is There a Better Way to Regulate Markets?

In our last post, we explored how many frustrating market situations aren’t examples of capitalism failing, but rather of capitalism being prevented from working through cronyism and regulatory capture. This raises an important question: If excessive government regulation creates problems, does that mean we should have no rules at all? Not quite. The issue isn’t regulation itself. It’s who does the regulating and how it happens. Consider healthcare, which perfectly illustrates our point about heavily regulated industries. It’s plagued by sky-high prices, limited options, and often poor patient satisfaction. It’s also one of America’s most heavily regulated sectors. At the …

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Tyler Perry’s Rule: Never Change Your Market

From homelessness to a multi-billion dollar entertainment empire, Tyler Perry’s entrepreneurial journey is nothing short of extraordinary. In a revealing conversation about his path to success, which you can watch below, Perry shares insights that every business owner should hear about understanding your market and staying true to your vision. Perhaps the most striking aspect of Perry’s success is his unwavering commitment to his core audience. “I never succumb to [pressure to change who you are to attract someone or something],” he explains. “I always believe in serving my audience, super-serving them.” This dedication to understanding and meeting the needs …

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Is Capitalism an Inherently Rigged System?

“The system is rigged.”  It’s a common complaint, and at first glance, it’s hard to argue with. We’ve all experienced it: the internet service provider with terrible service but no real competition. The airline that loses your luggage but faces no consequences. The big tech platform that seems immune to user complaints. If capitalism is supposed to be about competition and consumer choice, why do these situations persist? The answer is pretty simple: many of these frustrating scenarios aren’t actually examples of capitalism at work—they’re examples of capitalism being prevented from working. Remember what we established in our earlier discussions …

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Where Did Capitalism Come From?

When we talk about economic “systems,” it’s easy to imagine them as grand designs, carefully plotted out and implemented from the top down. But capitalism isn’t like that at all. Remember what we established in our last post: capitalism is fundamentally about individuals owning and controlling their property. And if individuals truly own something, only they get to decide what to do with it. This raises an interesting question: If capitalism is based on individual decisions, how could it possibly be imposed by anyone, government or otherwise? The answer is simple—it isn’t. Long before anyone coined the term “capitalism,” people …

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