Keeping Capitalism Honest

Natalie Taylor

Marshall University

This is an Interactive Discussion Format

This is a discussion of the obstacles educators face in our changing age of mass information.  This discussion will attempt to:

A.) Separate fact from fiction when interpreting historical events that have had profound effects on society's view and understanding of free enterprise and capitalism. 

B.) Analyze the media's effect on the current mainstream views of capitalism and the direction America's economic system has taken in recent years as a result.

C.) Brainstorm ways to keep the discussion of capitalism in America honest for future generations.

Capitalism Defined

During our discussion today we are going to define Capitalism in the following manner.  

 ”An economic system in which most of the means of production are privately owned, and production is guided and income distributed largely through the operation of a free market.”[6]

Just a bit of history from the same website.

“The ideology of classical capitalism was expressed in Adam Smith's Wealth of Nations (1776), and Smith's free-market theories were widely adopted in the 19th century. In the 20th century the Great Depression effectively ended laissez-faire economics in most countries, but the demise of the state-run command economies of eastern Europe and the former Soviet Union (see communism) and the adoption of some free-market principles in China left capitalism unrivaled (if not untroubled) by the beginning of the 21st century.”[6]

Fact Vs. FictionThe Effects of Historical Accuracy and

InterpretationHow do we separate fact from fiction when interpreting historical events when the accuracy of the historical event being discussed is in question?

How do we know when the information we receive in books, on the internet, from T.V., radio, educators, family, etc. is the truth? 

How do you decide what to believe?

Short Answer:

• Short Answer: Get the truth

• Complication: Historians know the winner of any battle is the one who writes the History. Therefore, truth is not always easy to define or find sometimes. This remains true today in much of our World. Times are changing though!

Google images Google images

[5] [5]

Now Begins the Journey

• Defenders of Capitalism search for the Truth!

Fact or Fiction?

John D. Rockefeller was a Monopolist.

A.) Yes

B.) No

C.) Maybe

D.) Idk (I don't know)

A short History lesson

• John D. Rockefeller has been labeled a monopolist by many people over the years. The idea is that he was unfairly keeping out competition. Therefore it was necessary for the government to break up his company. They did this with Antitrust laws. The winner of this battle would be the government.

• What fails to be acknowledged is Rockefeller’s altruism. He came from humble beginnings and was hardworking. He was a very giving and compassionate man. He donated a lot of money to less fortunate individuals. When speaking about kerosene which he developed and replaced costly whale blubber oil, Rockefeller was  quoted as having said,

“We have to make it cheap (inexpensive) and good for the common man.”

~John. D. Rockefeller

Monopoly Explained

The explanation given to me in my Microeconomics class at George Mason University by Professor Thomas Rustici was:

A monopoly is when there is only one business or product of its kind.

Antitrust laws broke up Rockefeller’s company. The reason his company was the only one is simply because there was no other competition. The other business owners trying to compete sold their companies to him. He was not looking for power and he was not going to price gouge his customers, as we are many times led to believe.

The reason it is stated that this would rarely happen in free market capitalism. Is because of the belief that most men are good.[2]

In “Atlas Shrugged”, Ayn Rand attempts to portray the hardworking, altruistic side of capitalism and expose those making deals with government officials.

Question

What is your view on Copyright infringement?

[4]

Viewpoint on Copyright Infringement

Copyright laws are in place to protect artist’s creations from thieves.

Abuse is a real problem.

What is considered illegal downloading?

When I was young making a mixed tape for a friend was Rampant!

Who came up with Retirement Pensions?

Capitalism=Good

America’s business leaders

Early capitalism allowed the creation of the financial means that made implementation of retirement pension programs, which they designed to help their elderly employees.

The first pension plans were started by privately owned companies to add benefit to their employees and help care for elder workers financially. The government did not come up with the idea and there was no social security at that time. The point is that successful capitalist business owners were doing everything they could to help their fellow man. The government wasn’t forcing them to provide retirement benefits. The companies that were thriving were offering wage rates and benefits to help their employees.

Bill Gates Altruism

Since Bill Gates Retirement he has devoted his time and personal resources to The global fund to fight Aids, Tuberculosis, and Malaria. www.theglobalfund.org [3]

“William Henry "Bill" Gates III (born October 28, 1955) is an American business magnate, investor, computer programmer, inventor and philanthropist. Gates is the former chief executive and chairman of Microsoft, the world’s largest personal-computer software company, which he co-founded with Paul Allen.”[6]

He is consistently ranked in the Forbes list of the world's wealthiest people.

Without capitalism could he have thrived like this?

Fact or Fiction?

• Imports are good.  Exports are bad.

Imports and Exports

• Before I took Microeconomics at George Mason University I believed that Imports were bad and Exports were good.  • I’m pretty sure this belief was due to my idea of American Patriotism.

• At George Mason University, where I took my first Economics class, I was taught that it's just the opposite. When I took Economics of Developing Countries at Marshall University with Harlan Smith I further understood the accounting principles of this idea:  • Imports are good for America because so many countries are in debt to us.  The only way we can really be paid back is

with tangible items.  Money is only a  medium of exchange.  Money has no real value.

• Therefore, when America exports items to other countries, until we receive compensation we have an outstanding loan. Or depending on the situation, if we have an outstanding loan to another country we will need to export goods or services to them.

Therefore, from a financial standpoint…

Exports=Bad Imports=Good

From an altruistic standpoint…

Exports=Good Imports=Bad

Opinion Question

• Has capitalism's reputation improved, declined or stayed the same since it's inception?

A.) Improved

B.) Declined

C.) Stayed the same

Capitalism’s Reputation and how it affects America

I believe the answer is B.) Capitalism’s Reputation has Declined. That is my Final Answer.

I believe it is a very sad truth for the following reasons:Look around you! Look at the progress America has made in such a short amount of time.

The idea there would be chaos without government control is false.

You can not control people and expect them to thrive. The reason capitalism worked in the past is because American’s had more freedom.

When governments use power, fear, control, and manipulation it breeds dishonesty among otherwise honest people.

Government interference turns many honest capitalists into liars out of necessity.

Of our current world economic systems capitalism in America is still one of the least controlling and least corrupt, contrary to popular opinion. It is our duty as defenders of freedom to keep it that way and to continue to search for something better.

Effects of media on attitudes toward capitalism

• Where do you get your news?• TV, radio, newspaper, internet, some other source?

• What are the mainstream attitudes toward capitalism?

• What effects do the media have on these attitudes?

Effects of media on attitudes toward capitalism

It appears many media sources fail to uphold and defend capitalism.  Many of our journalists, reporters, and newscasters call themselves capitalists yet they are making capitalism look very bad. This causes confusion and hurts the reputation of capitalism. America and capitalism are synonomous in much of the world.  Therefore, giving capitalism a bad reputation in effect gives America a bad reputation.  We must stay united as a nation and believe in the integrity of our system and continue to work at improving it. Remaining forthright and positive are the only way to reach the goal.

How do these media influences threaten our American Economic System?

• When they attempt to confuse the reader, listener, or viewer with malicious intent.

• When they refuse to keep an open mind.

• When they do not seek the truth.

• Remember the idea we discussed earlier about History being written by the winner? 

• Remember how I said failure to acknowledge the altruistic characteristics of many of our finest business leaders has negatively impacted or skewed many American's perception of capitalism? 

• The mainstream media adds to all of these things.

Keep Thinking!

• One thing I learned in Dr. Robin McCutcheon’s Comparative Economic Systems class at Marshall University is that we need to get more people to THINK. [1]  I agree! • We should also attempt to evaluate whether what we think we know or

what we just learned at any given moment is actually the truth?

• Unfortunately, we run into this issue…• How do you know what the truth is when there are so many sources of

competing information floating around?

• The defenders of Capitalism do NOT give up! The Search Continues!!

Question

• How do we keep our perceptions, realities, teaching methods, and discussions about capitalism in America positive and honest for future generations?

Keeping it Honest

• It starts with our youth

• Try to keep young minds open

• Don’t quit or lose hope

• Keep helping people question what they read and see and hear

• Don’t judge too quickly

• Don’t speak in absolutes

• Speak on people’s level

• Create an environment for our youth that promotes honest and open communication

• Ask more questions, and think before you respond

Conclusion

• You just do your personal best, throw it up against the wall, see what sticks and soldier on!

Bibliography

1) McCutcheon, Robin. Ph. D at Marshall University. Lecture in Comparative Economics Systems during fall semester 2013.

2) Rustici, Thomas. Professor at George Mason University. Lecture in Microeconomics during spring semester 2009.

3) Smith, Harlan. ECN 460: Economics of Developing countries. City: Publisher, date of publication.

4) Taylor, Natalie. “Jailhouse Rock/Taken at Marshall University. This is a poster displayed in the computer lab that is in the basement of the Student Center.”  2014.

5) www.googleimages.com. Google Images, March 20th, 2014.

6) www.wikipedia.com. Wikipedia, March 20th, 2014.