“Capitalism is killing the planet.” You’ve probably heard this claim or something like it. The narrative is familiar: profit-hungry corporations belch pollutants into our air and dump toxins into our water with no regard for anything but their bottom line. According to this view, only the strong, regulatory hand of government stands between us and environmental catastrophe. It’s a compelling story—but is it accurate? In our previous discussions, we’ve explored what capitalism really means: a system based on private ownership, voluntary exchange, and individual decision-making. Now let’s apply this understanding to environmental questions. The standard environmental narrative often begins with …

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, …

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, …

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 …