[quote]FightinIrish26 wrote:
Because laissez faire capitalism is a dangerous thing. It leads to things like child labor, no minimum wage, monopolies, and a host of other problems.[/quote]
You make too many assumption about the consequences of capitalism and laissez-faire that must be debunked.
Child labor was not a product of capitalism as it came before the ideas of a market economy were ever considered. Capitalism has nothing to do with who works and who doesn’t. It is a means of ownership in the market economy. Child labor was a left over product of feudalism in the new industrial age. The ideas of capitalism were barley underway when child labor was abolished.
Capitalism actually makes it so that children do not have to work because it maximizes productivity better than feudalism ever could have (capitalism could have also made schools more affordable for the working class but unfortunately the government interferes with that process). Besides, child labor is not such a bad thing. Some kids should be working and not cluttering up schools.
Minimum wage is an other very bad idea that is a product of the egalitarian mindset. It creates disemployment and actually harms marginal labor more than it helps it. Anytime there is price fixing there will be supply shortages – labor is no exception. Capitalism actually makes wages higher than any government could enforce by maximizing productive capacities which is what a wage is based on. Why should a less productive person make minimum wage if an employer thinks the expense is not worth it?
Monopolies are a product of interference in the market by barring entry into it and not a product of capitalism. It is true that all businesses want no competition and want to be the biggest and best but in a free society that cannot happen without some sort of coercion. Think of the mafia for example.
Capitalism does not create the things you mentioned nor does it make society worse off; rather the thing you mention are a product of the human condition already and capitalism makes it better despite these conditions. Capitalism is the doctrine that the means of production should be privately owned and influenced by a market economy. It is a product of liberalism.
You haven’t made much headway in “Human Action”, have you? Skip this book and read “Economics in One Lesson,” by Henry Hazlitt. You need to get over the myths of the free market economy before you can come to any real understanding of capitalism.


