Well after some comments made by a few of my fiends here on Face book, regarding my stance in apposing Capitalism....I decided to do some research and see what I could dig up...I mean I started thinking that perhaps maybe I am wrong after all.....at the end I found some rather very interesting material which I think you will find also very interesting ....to summarise it all, this information which I am about to share with you...very clearly points to the fact that the economical system which was intended for our country by our founding fathers after our victory in our war of Independence...was in fact not Capitalism, but rather an Economical system which was made up of two separate economical philosophies or systems...Mercantilism and the system of Moral Economics....
The implementation of our current Capitalist/Crony Capitalistic system was in fact Solly the handy work of non other then perhaps the most vial and despicable character, whom unfortunately has been given credit as one our great nations founding fathers...Alexander Hamilton....which incidentally one of our countries greatest fathers ( My personal favorite ) whom was second only to Washington...Thomas Jefferson, detested and mistrusted Hamilton fiercely, and so did Thomas Pain the truly genius author of the Common Sense papers.....Hamilton was a man who was both corrupt and immoral, who had a vision of establishing in America, a powerful Central government with maximal power and authority....hence why he very cunningly did away with our countries first true document the Articles Of Confederation, which gave total control and power to the states rather then the feral government.....and replaced it with our countries current document....the United states Constitution...
Yes I know I know...that the reasoning which had been given for the drafting and adapting of the new document and replacing it instead of the Articles, was that under the old document the government had very little authority to raise funds or tax etc....I am fully aware of this...however Thomas Jefferson, during his Kentucky Resolutions speech presented a number of proposals which would have solved this issue with out having to do away with the Articles...however Hamilton, having other motives and attentions would hear nothing of it...therefor he sat about drafting the new document and while Jefferson, was away as Ambassador to France...he very quickly and quietly pushed for the new document to be ratified, which it was....this was despite of fierce apposition coming from individuals such as Pain, Jefferson and Madison...whom very clearly understood what Hamilton was about.....i n any event like I said Im sure you will find these articles very interesting and enlighten....
'' Adam Smith A Socialist ''
A few statements made by Adam Smith, promoting the influance of government over a countries economy:
' Whenever there is great property, there is great inequality. For one very rich man there must be at least five hundred poor, and the affluence of the few supposes the indigence of the many. … The acquisition of valuable and extensive property, therefore necessarily requires the establishment of civil government. ''
-Adam Smith -
"Servants, labourers and workmen of different kinds, make up the far greater part of every great political society. But what improves the circumstances of the greater part can never be regarded as an inconvenience to the whole. No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable. It is but equity, besides, that they who feed, clothe and lodge the whole body of the people, should have such a share of the produce of their own labour as to be themselves tolerably well fed, cloathed and lodged." - Adam Smith, The Wealth of Nations, Book 1, Chapter 8
-Adam Smith -
'' Market socialism ''
Market socialism is distinguished from models of mixed economies, because unlike the mixed economy, models of market socialism are complete and self-regulating systems.[4] Market socialism is also contrasted with social democratic policies implemented within capitalist market economies: while social democracy aims to achieve greater economic stability and equality through policy measures such as taxes, subsidies and social welfare programs, market socialism aims to achieve similar goals through changing patterns of enterprise ownership and management.[
Early models of market socialism have their roots in the works of Adam Smith and the theories of classical economics, consisting of proposals for cooperative enterprises operating in a free-market economy, with the aim of eliminating exploitation, allowing individuals to receive the full product of their labor, and to remove the market-distorting effects of concentrating ownership and wealth in private owners.[6] Among early advocates of market socialism were Ricardian socialist economists and mutualism.
'' The Real Hamilton ''
Hamilton was the intellectual leader of the group of men at the time of the founding who wanted to import the system of British mercantilism and imperialistic government to America. As long as they were on the paying side of British mercantilism and imperialism, they opposed it and even fought a revolution against it. But being on the collecting side was altogether different. It's good to be the king, as Mel Brooks might say.
It was Hamilton who coined the phrase "The American System" to describe his economic policy of corporate welfare, protectionist tariffs, central banking, and a large public debt, even though his political descendants, the Whig Party of Henry Clay, popularized the slogan. He was not well schooled in the economics of his day, as is argued by such writers as John Steele Gordon. Unlike Jefferson, who had read, understood, and supported the free-market economic ideas of Adam Smith, David Ricardo, John Baptiste Say (whom Jefferson invited to join the faculty of the University of Virginia), Richard Cantillon, and Turgot (a bust of whom still sits in the entrance to Monticello), Hamilton either ignored or was completely unaware of these ideas. Instead, he repeated the mercantilist myths and superstitions that had been concocted by apologists for the British mercantilist state, such as Sir James Steuart.
Hamilton championed the cause of a large public debt — which he called "a public blessing" — not to establish the credit of the US government or to finance any particular public works projects but for the Machiavellian idea of tying the interests of the more affluent to the state: being government bondholders, they would, he believed, then support all of his grandiose plans for heavy taxation and a government much larger than what was called for in the Constitution. He was right. They, along with Wall Street investment bankers who have marketed the government's bonds, have always provided effective political support for bigger government and higher taxes. That is why Wall Street investment bankers were first in line for a bailout, administered by one of their fellow investment bankers, Treasury Secretary Paulson.
Hamilton argued for a large standing army not because he feared an invasion by France or England, but because he understood that the European monarchs had used such armies to intimidate their own citizens when it came to tax collection. Evidence of this is the fact that Hamilton personally led some 15,000 conscripts into Western Pennsylvania (with George Washington) to attempt to quell the famous Whiskey Rebellion. He was eventually put in charge of the entire expedition, and rounded up two dozen tax protesters, every one of whom he wanted to hang. They were all pardoned by George Washington, however, to Hamilton's everlasting regret.
In a publication entitled "A History of Central Banking in America" the Fed proudly labels Hamilton as its founding father, boasting that he even spoke just like a contemporary Fed chairman. The First Bank of the United States, which was opposed by Jefferson and Madison, created 72 percent inflation in its first five years of operation, as Murray Rothbard wrote in A History of Money and Banking in the United States. It was not rechartered in 1811, but was resurrected by Congress in 1817, after which it created America's first boom-and-bust cycle, which led to the Panic of 1819, the title of another of Rothbard's great works on American economic history.
After years of generating political corruption and economic instability, Hamilton's bank finally came to an end by the early 1840s, thanks to President Andrew Jackson. This led to the twenty-year "free banking" era. Hamiltonian central banking was resurrected once again in the 1860s with the National Currency Acts. This is an important reason why some historians have labeled the postwar decades as a period of "Hamiltonian hegemony."
When Anna Schwartz, Michael Bordo, and Peter Rappaport evaluated this precursor to the Fed in an academic publication, they concluded that it was characterized by "monetary and cyclical instability, four banking panics, frequent stock market crashes, and other financial disturbances" (see their paper in Claudia Goldin, ed., Strategic Factors in Nineteenth-Century Economic Growth). Naturally, the government's response to all of this economic panic and instability caused by centralized banking was to create an even more centralized banking system with the Federal Reserve Act.
Hamilton is perhaps best known among economists for his Report on Manufactures. In his 1905 biography of Hamilton, William Graham Sumner wrote that Hamilton's report advocated "the old system of mercantilism of the English school, turned around and adjusted to the situation of the United States." Thomas Jefferson also wrote that Hamilton's "schemes" for protectionism, corporate welfare, and central banking were "the means by which the corrupt British system of government could be introduced into the United States." They were right.
Hamilton's reputation as having had great expertise in economics and finance has been greatly exaggerated, wrote Sumner, who also wrote that Hamilton's economic thinking was marred by "confusion and contradiction" and that Hamilton was "befogged in the mists of mercantilism." Unfortunately for us, all of Hamilton's bad ideas "proved a welcome arsenal to the politicians" who succeeded him, noted Sumner.
At the constitutional convention Hamilton proposed a permanent president who would appoint all the governors of the states and would have veto power over all state legislation. His opponents correctly interpreted this as advocating a monarchy and, worse yet, a monarchy based on mercantilism. The reason for consolidating all political power first in the central government, and then in the hands of one man, the permanent president, was so that an American mercantilist empire could be centrally planned and controlled without any dissenters, such as tax protestors or free traders who resided in the various states. Hamilton (and his political heirs) understood that forced national uniformity is the only way in which such a central-planning scheme could work. The socialists of the 20th century understood this as well.
Hamiltonian mercantilism is essentially the economic and political system that Americans have lived under for several generations now: a king-like president who rules through "executive orders" and disregards any and all constitutional constraints on his powers; state governments that are mere puppets of the central government; corporate welfare run amok, especially in light of the most recent outrage, the Wall Street Plutocrat Bailout Bill; a $10 trillion national debt ($70 trillion if one counts the government's unfunded liabilities); a perpetual boom-and-bust cycle caused by the Wizard of Oz–like central planners at the Fed; constant military aggression around the world that only seems to benefit defense contractors and other beneficiaries of the warfare state; and more than half of the population bribed with subsidies of every kind imaginable to support the never-ending growth of the state. This is Hamilton's curse on America — a curse that must be exorcized if there is to be any hope of resurrecting American freedom and prosperity.
'' Difference Between Capitalism and Free Markets ''
When people discuss the characteristics and possible reforms of capitalism and free markets, they have a tendency to use these two terms interchangeably. In reality the two are quite different things. Let me explain.
Capitalism is defined as a system of ownership of the means of production, specifically the non-labor means of production, which includes factories, tools, equipment, etc. In a capitalistic organization, these means of production are privately owned. Labor is paid a wage for their efforts, and any profits go to the owners of the capital.
A free market system is simply defined as one in which everyone is able to freely sell their goods and services with prices determined by supply and demand.
It is possible to have capitalism without a free market in specific situations. Examples include organizations that have an effective monopoly on a market – they can prevent competition from entering the market and can set prices to maximize their own profits instead of being restricted by supply and demand. Another example is the awarding of government no-bid contracts to capitalistic organizations.
It is also possible to have a free market that does not involve capitalism. Examples include the traditional farmers market or co-ops competing with each other. In both cases, the clear distinction between owners and workers that is characteristic of capitalism is gone, yet there is still a free market competition that sets prices based on supply and demand.
It’s important to keep these distinctions in mind when discussing future economic possibilities. It is possible to reform some of the major problems of capitalism while maintaining the benefits of a healthy free market, and vice versa.
'' Ed Miliband should reclaim Adam Smith for the left ''
by Rob Williams
Last year in his speech to the Labour conference in Manchester, Ed Miliband laid claim to rebuilding Britain as One Nation. The Labour leader cited as his inspiration a former Conservative Prime Minister, Benjamin Disraeli, who made a famous speech on One Nation Conservatism in Manchester’s Free Trade Hall which, reflecting the spirit of the times, is now a luxury hotel. Miliband has hit the nail on the head on a number of big ideas. He understands that the squeezed middle, as well as the low paid, are feeling increasingly insecure, whatever claims of economic recovery there may be.
So this year, Miliband should go further. It is time for the left to reclaim the economist Adam Smith as one of their own. Adam Smith, of course, is usually considered to be the founding father of right-wing free market economics. In the UK, the Adam Smith Institute is reliably one of the most outrageous think tanks, an outrider of Thatcherism before it was invented.
Adam Smith was born in Scotland in 1723, and is usually seen as the founder of modern economics. The usual modern conservative’s view of Adam Smith is similar to the average 1970s socialist’s approach to Karl Marx. They probably haven’t read any of his work, but simply regurgitate someone else’s description of his writings. There is a persuasive argument that the Right have stolen Adam Smith’s identity in an audacious coup.
An increasing number of thinkers believe that Smith was a radical critic of the establishment of his day. They argue that, for Smith, prosperity was measured by a rise in living standards for the working class which sets Smith apart from other free market advocates who believed a low-wage economy was the key to economic development. Smith believed that economic policy should be secondary to moral and ethical concerns such as equality.
In his book, Chomsky on Miseducation, Noam Chomsky said,: “It’s quite remarkable to trace the evolution of values from a pre-capitalist thinker like Adam Smith, with his stress on sympathy and the goal of perfect equality and the basic human right to creative work, to contrast that and move on to the present to those who laud the new spirit of the age, sometimes rather shamelessly invoking Adam Smith’s name.”
In attacking the damage that growing inequality is doing to the country, Miliband can quote Smith directly,
“For one very rich man there must be at least five hundred poor, and the affluence of the few supposes the indigence of the many.”
Adam Smith was certainly not anti capitalist, but he did have a through mistrust of capitalists. In The Wealth of Nations he states that, “whenever possible they will collude to corner the market, to raise prices, and to deceive the public.”
The left understands that an unequal society is not a happy one, despite George Osborne’s claims of a recovery. Adam Smith understood this in The Wealth of Nations:
“Servants, labourers and workmen of different kinds, make up the far greater part of every great political society. But what improves the circumstances of the greater part can never be regarded as an inconvenience to the whole. No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable. It is but equity, besides, that they who feed, clothe and lodge the whole body of the people, should have such a share of the produce of their own labour as to be themselves tolerably well fed, clothed and lodged.”
Ed Miliband needs to make the unequivocal case for public investment. New homes, better hospitals, improved transport links, all can, and must be developed to wean the economy away from a reliance on consumer debt to pay for goods manufactured overseas. Miliband can be sure that Smith would have supported this, too:
“The third and last duty of the sovereign or commonwealth is that of erecting and maintaining those public institutions and those public works, which, though they may be in the highest degree advantageous to a great society, are, however, of such a nature that the profit could never repay the expense to any individual or small number of individuals, and which it therefore cannot be expected that any individual or small number of individuals should erect or maintain.”
As the government continues to sell off and privatise public services that even Mrs Thatcher left alone, we really do need a new way of thinking. Challenging times need big ideas and Miliband needs to be bold. Gordon Brown attempted to place Smith’s work in the progressive tradition. Oxford academic, and author of Adam Smith, Radical and Egalitarian: An Interpretation for the 21st Century Iain MacLean, suggests that, if we take Adam Smith’s work as a whole, he can only be classed as an egalitarian and left-wing philosopher.
It is time for Ed Miliband to welcome Adam Smith back as a man on the left.
Robert Williams works in public affairs and as a journalist