“One of the methods used by statists to destroy capitalism consists in establishing controls that tie a given industry hand and foot, making it unable to solve its problems, then declaring that freedom has failed and stronger controls are necessary.” — Ayn Rand
Michael Moore is plain stupid liberal who does not know what he’s talking about. His new movie “Capitalism: A Love Story” seriously misrepresents the ideals of capitalism. The premise of his new film-docu would have been justified had he entitled it “Government Regulation and Corruption: A Love Story. Moore miserably failed to define his terms. Capitalism is a term with objective meaning. It is a system that is based on individual rights. In my blog entitled “Capitalism and Imperialism are Contradiction in Terms,” I stated the following: “Only in a capitalist society can man own a private property, as well as the products of his own mind. Under a socialist or communist system, all properties are owned by the state.” Moore also failed to objectively explain the cause of America’s recession. America’s economic collapse in 2008 was brought about by excessive government intervention. It started with the creation of the Federal Reserve in 1913, a situation that justified the fractional reserve system, which rendered the US dollar partly backed by gold. However, this semi-gold system ended in 1971 when the Bretton Woods agreement was signed, thus totally breaking the tie between gold and the US dollar. Today, the semi-private (take note: semi-PRIVATE) Fed is printing trillions of dollars out of THIN AIR. The Fed has become the busiest printing press since Barak Obama was officially sworn in as America’s 44th President in January.
Moore failed to trace the root cause of America’s financial breakdown. The collapse of American banks was partly triggered by the Community Reinvestment Act that took effect in 1977. This law coerced and forced, under pain of possible imprisonment, banks to lend money to borrowers regardless of their incapacity or capacity to pay! So what’s the result of this political interference? A lot of people and businesses borrowed money and by invoking this altruistic law, banks had no option but to give away depositors’ money to borrowers. When the Lehman Brothers filed for bankruptcy protection in London in September last year, this incident triggered a series of bank runs not only in America but also in most parts of the globe. The housing problem was also caused by interventionist laws. Fannie Mae and Freddie Mac created by the Democrats had a major role in creating the housing bubble.
Problems regarding America’s health care system all sprang from America’s statist policies that forced insurance companies into extending insurance coverage to applicants regardless of their capacity to pay and health conditions. For example, Washington State’s 1993 health-care plan forced insurance companies to accept all new applicants, regardless of pre-existing conditions. Under the “guaranteed issue” and “community rating” policies, insurance companies were coerced and forced into extending insurance policies to applicants at the same price, regardless of health, age, or other risk factors. As a result of this interventionist policies of the American government, the premium of policy holders increased so to cover those who were unable to pay.
Is it proper to blame capitalism for these horrible results of government intervention and corruption? Capitalism is based on that French slogan “laissez-nous faire,” which means “let us alone.” It is wrong and improper to ascribe the ongoing economic crisis to Capitalism. For decades, Capitalism has been vilified, attacked and distorted by the New Left or the Liberals and the Conservatives. Over the past few months, the Obama administration massively expanded the scope and power of the executive branch by creating dozens of government Czars, which include health czar, regulatory czar, among others. They authorized the semi-private Federal Reserve to print more than 2 trillion US dollars (although there were reports that it reached $5 trillion) out of nothing! This really massive bailout money was used to rescue financially troubled banks and companies which were mismanaged. In the first place, the Obama administration should not have rescued these financially ill companies and banks and should have let the chips fall where they may. But it seems that the top executives of the bailout beneficiaries are again committing the same mistake which brought their businesses to financial turmoil, as they have been distributing hundreds of billion dollars among each other. It is clear that the altruistic bailout scheme of Obama failed to bring the desired results, as recession continues to worsen. Also today, every penny that the Fed prints is a mortgage on wealth that does not even exist. It’s a debt to be paid by the people through their ability and willingness to work. It means that the bailout money did not come from the taxpayers or government loans. This stultifying figure came from the magical power of the Fed to print money out of thin air. Under this system, inflation in inevitable.vAs a result, the price of gold went beyond US1,000 per ounce. This only proves this “barbarous relic,” as the mind behind this monetarist system- John Maynard Keynes- described gold, is a thing of real value.
These things are not taught in college. They’re not part of our academic curricula. Henry Ford once said, “It is well enough that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” It is not surprising that many are applauding this ill-informed, pitiful docu-film of Michael Moore. What is happening today is not unintentional; it is deliberate in order to justify the ascension of socialism being pushed by the socialist Obama regime. Despite the temporary panacea administered by the Obama administration, unemployment in the United States is now at its worst at more than 9.5 percent. Ayn Rand is right in saying several decades ago that: “One of the methods used by statists to destroy capitalism consists in establishing controls that tie a given industry hand and foot, making it unable to solve its problems, then declaring that freedom has failed and stronger controls are necessary.”
The best weapon to defend our freedom and individual rights is to acquire proper knowledge and education, and it is disappointing to note that the educational institutions in this country miserably failed in this regard. This is the reason why every man must follow the right philosophy. And to acquire proper knowledge, one may start with Aristotle’s Law of Identity– that A is A, which means that man cannot contradict reality, that contradiction cannot exist. It means that if a government prints money out of nothing, the only possible result is inflation, which is considered hidden taxation. It means that if the government forces companies to sell at a very low price for the sake of common good or the welfare of the majority, their business would go bankrupt.
In regard to this matter, it is no longer a secret that the Obama administration and its supporters intend to destroy the free-market system in order to establish a statist society. In a very recent hearing on “greedy” oil companies, Liberal politician Maxine Waters accidentally admitted that the Obama administration is out to “take over” or nationalize private companies. In America, liberalism is socialism.