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 …

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 …

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 …

“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 …