Capital-ism

An often under-appreciated characteristic of capitalism is (somewhat surprisingly, given its name) its reliance on capital and technology. Adding capital makes our labor more productive. Imagine having to walk to work instead of driving your car...or attempting to cook dinner using an open flame instead of a modern stove top and oven. Forgoing the use of capital would eat up a greater chunk of your time, making you less productive and society worse off.

This point was brought home to me last week when our dishwasher broke. In a household with 2 kids, the dishwasher is typically run at least once a day. I don't apologize for this, because the truth of the matter is that the dishwasher is a piece of capital that makes my labor more productive. It reduces the time needed to do the dishes by at least 80% (my personal estimate) allowing me to spend those valuable extra minutes and hours with my family.

So when the dishwasher broke last week, and the realizaton of all the increased hours of cleaning dishes by hand set in, I acted quickly. By logging on to the internet and searching for a description of the dishwasher and problem, I was immediately directed to a handiman's website that diagnosed the issue as a bad heating element. In the same post that diagnosed the problem was a link to the exact part I would need to replace. Perhaps the handiman that made the post also owned the store that sold me the part....did I begrudge him for just trying to make a buck off me? No! Because I know that it was the opportunity for profit that incentivized him to start the business and make helpful posts in the first place. If you take away the profit, you take away his incentive to help others by diagnosing the illnesses of our dishwashers and prescribing the appropriate remedies.

Within two days I had the requisite part and successfully operated on my patient. The dishwasher is back up and running, and my labor is back to being productive in the kitchen. So thank you capitalism. Thank you for dishwashers that make my labor more productive, saving my most valuable resource of time, and allowing me to spend it with my family. And thank you for handimen, that in an effort to provide only for themselves and their families, provide excellent service to their customers in an effort to win and keep their business.

A Beacon of Light During the Blackout

Some serious thunderstorms passed through here this afternoon. I was on my way home from work driving in substantial rain and standing water when I realized that the majority of traffic lights were out. No, I don't mean that they were flashing yellow and red, they were completely out.

I know what you're thinking.....certainly the police would be there to direct traffic. But no, I saw three different police vehicles driving near/through these lights, and not one of them stopped to direct traffic.

Imagine the chaos, the anarchy, that would ensue. No government direction of traffic during an afternoon rush hour, surely we would all be the victims of a catastrophic automobile armageddon!

What actually happened was a testament to individuals who belong to a culture of individual liberty and free market exchange. We are used to cooperating with each other. So at each of the blacked-out intersections I passed through, a spontaneous organization of traffic via a 4-way stop method broke out! All drivers, realizing the situation and the potential benefits from cooperation, were able to work out a completely non-verbal, non-hierarchical method of directing traffic amongst themselves. This is a central tenant of market-based economics. No central, coercive authority is needed for there to be order and efficiency in a society.

Beautiful, Ice-Cold Capitalism

A couple weeks back, we had the unfortunate experience of having our air conditioning shut off. In the heat of this summer and with a newborn in the house, this was a situation that I wanted to resolve immediately. So I cracked the phonebook and began calling HVAC technicians.

I was pleasantly surprised when calling one particular business to hear that the service technician could be by in about an hour as he was already in the area. True to his word, Jimmy was in our driveway within the hour. Upon arrival, Jimmy revealed himself to be pleasant and professional. It only took a momentary inspection for him to recognize the problem. Within minutes he had quoted a price, replaced the damaged part and successfully activated the unit.

After this service, Jimmy was quick to give me an opportunity to ask questions and find out if I was satisfied with his service. Are you kidding? He not only came out almost immediately, but he was pleasant and successfully fixed the problem....of course I was satisfied! I got to thinking that Jimmy must be some sort of saint to give us this premier treatment!

But after some conversation, I found out that he was simply the owner and operator of his own business. He made money by fixing our air conditioning unit, money that I was happy to give him in exchange for the service. As a result of this exchange, we were both better off. Jimmy made some money, and my family and I were cool again. And knowing that all his future customers must agree to voluntarily exchange for his services, he was eager to do a good job so that we would not only call him in the future, but also recommend him to our friends and family if they were in a similar situation.

So I told him, "Yes Jimmy, I'll certainly recommend you in the future." But not just Jimmy, I'll also recommend the system that provides the incentives for him to do such a good job. So thank you capitalism, not just for the incentive structure that let our air conditioner get fixed so quickly, but for providing the incentives for air conditioning to be invented in the first place.

Stimulus Proposal

Government spending on environmental projects in an effort to stimulate the economy is all the rage these days. In light of the popularity of these projects, I would like to propose one of my own.

Studies estimate that the ocean erodes 2 to 3 feet off the eastern coast, on average, every year. If this is allowed to persist, and assuming a similar rate of erosion on the west coast, the United States could disappear in approximately 2,288,000 years!

So, in the spirit of saving our imminently threatened existence, I propose that the federal government pay me to lay on the beach. I promise to stay in one spot in order to keep all the sand underneath me from washing into the ocean. This will accomplish the environmental objective of my project by protecting our endangered sand.

In addition, I promise I will take the money the government pays me and spend it at a beachfront bar on oysters and beer (I need nourishment anyway, right?) This will provide the local beachfront bar with additional sales, so that it can hire more bartenders and servers to bring my orders out to me. The bar owner will be making additional money that he can spend on new flatscreen TVs for the bar, stimulating the local electronics store. The additional employees will all spend their wages and tips in the local economy as well. From here, the multiplier will carry forward my stimulus to the beachfront community in the form of higher sales and additional employment, all while protecting the environment.

Environment: Saved.
Economy: Stimulated.
Me: Wasted away again...

The Founding

I'm fairly certain that none of the islands pictured here are for sale. This is insignificant, however, as out of all the islands that actually are for sale, I can afford none of them. One day, I will buy an island and found my own banana republic. Until that day, the Capitalist Republic of Campbell, the CROC so to speak, will at least have an existence in cyberspace. Here I can muse endlessly about the joys and triumphs of capitalism, the savage brutality of socialism, and the freedom that so many of us take for granted.