‘Greedy Capitalists’ Are the Best at Giving Us What We Want
I’ve made very serious (and hopefully substantive) arguments about why small government and free markets are the recipe for prosperity.
Simply stated, profit and loss is a powerful feedback mechanism, and entrepreneurs and business owners who want to make money face constant pressure to attract consumers by offering better products at affordable prices.
But let’s examine this issue today from a whimsical perspective. I found a couple of clever images on Reddit‘s libertarian page.
Here’s the first example, which will make instantaneous sense for anyone who’s ever walked into a McDonald’s and a DMV on the same day.
The second example is more elaborate, but makes a similar point. Those of us with gray hair have seen the amazing developments produced by the private sector in this collage.
But can anyone think of something that has improved in the public sector?
For what it’s worth, the two cars in the column for the private sector don’t look that different. But, once again, those with gray hair will probably remember how often they used to break down in the past. The computerized engines have greatly improved operations and maintenance. Not to mention map programs, built-in TVs for the kids in the back seat, and other positive changes.
Let’s close with a serious point. Yes, business owners are greedy. They’re looking out for their own self-interest. They would love to charge us high prices.
But a system of free enterprise means that they can only earn money if they cater to our needs and wants. And so long as politicians aren’t showering them with bailouts, subsidies, protection, or handouts, that means they compete to provide us ever-better goods and services at ever-more-affordable prices.
In other words, Adam Smith was right.
Reprinted from International Liberty.
Daniel J. Mitchell is a Washington-based economist who specializes in fiscal policy, particularly tax reform, international tax competition, and the economic burden of government spending. He also serves on the editorial board of the Cayman Financial Review.
This article was originally published on FEE.org. Read the original article.