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Several of my previous articles have mentioned that the problems most people see in capitalism are not the fault of capitalism but the fault of the government. Several readers have asked for expanded clarification, and I'm pleased to. To begin, capitalism is simply economic freedom. It is just like any other freedom and just as subject to abuse. Just as living in a free country doesn't prevent some from abusing that freedom and performing criminal acts. Just as no one blames living in freedom for the actions of criminals, it makes no sense to blame the economic system, capitalism, for the actions of economic criminals. Furthermore, unlike most other criminals, many economic criminals have the opportunity to conspire with those in government to use legislation and the legal system to manipulate the system for their benefit to the disadvantage of others. Imagine for a moment that those who wanted to rob banks formed a Bank Robbers' Industry Association (BRIA). Imagine the BRIA created a lobbyist group that contributed campaign cash to members of Congress to decriminalize bank robbery in some instances and to reduce penalties in others. Imagine that at the same time, the BRIA campaigned for more stringent laws and penalties for bank robbers who were not members of the BRIA. Further, imagine that they succeeded in getting a tax break for the purchase of bank-robbing tools and supplies. Does all this seem completely crazy? Of course, it does, but that's precisely the situation with economic criminals. But who's to blame? If the government allows the bank robbers to form an association and allows that association to influence government policy, the fault lies with the government. Of course, criminals will try to get away with committing crimes; they are criminals. The economic situation is the same. The economic system, capitalism, is not responsible for the existence of economic criminals, and it is certainly not to blame for government officials colluding in their crimes. But doesn't the law prevent the BRIA from contributing to political campaigns? Well, yes and no. Here's how it works. Let's say the BRIA wants a new law saying that you can't be convicted of bank robbery unless the state can prove that the robber intended to harm the bank. How does the state prove that intent? Who knows? That's the point. So, the BRIA knows it can't just bribe the head of the House Banking Committee—that would be illegal. It also can't contribute $100,000 to her re-election campaign fund—that, too, would be illegal. So, the BRIA puts together and sponsors a fundraiser that raises $100,000 for the Congresswoman. The Congresswoman knows how the BRIA wants her to handle their proposed bill in her committee—as is common practice, they wrote the bill. The Congresswoman also understands that to get re-elected, she needs tons of cash, and the cash will keep coming in if she gets the BRIA bill approved. No laws are broken, and everyone's happy except the banks, customers who have their money stolen, and the taxpayers who have to pay for the FDIC deposit insurance. If the BRIA spends $1,000,000 helping candidates get elected, it can expect about $770,000,000 back in legislative help. According to a study by the Sunlight Foundation, that's the average return on investment from lobbying. That's just the beginning. At the state level, the BRIA uses similar tactics with state lawmakers to pass occupational licensing laws. The laws would make obtaining a bank robbing license necessary if the robber has not first filed a plan with the BRIA. This rule prevents bank robbers from endangering the public with random robberies by unskilled robbers. That's how most occupational licensing works. The established industries prevent competition by partnering with state and local governments. One of my prior articles, 'Crony Capitalism?' provides several specific examples. When the last bell rings, the government makes the rules and is responsible for enforcing the rules. The government then bears the responsibility when actions that should be against the law are not, and lawbreakers who skirt and defy the law are not held accountable. Just as laws are required to allow us to enjoy civil freedom without fear from those who would harm us, regulations and enforcement are needed to protect our economic freedom, free-market capitalism. It's a serious error to blame liberty for the government's failures. So, are capitalists evil? No! Capitalists are people. Like all people, while the vast majority act appropriately, some don't and give the rest a bad name. Some people are bank robbers. Does that prove all people are? No! Does the fact that some capitalists and legislators are crooks prove they all are? No! In fact, if you read my article, 'Whos a Capitalist?', I think you'll agree that these crooks aren't truly capitalists. They are crooks masquerading as capitalists. Capitalists are folks who invest in the future. Without capitalists, the world would enter another dark age, a millennia of virtually no improvement in the human condition that we finally escaped thanks to capitalism. It isn't capitalism that needs fixing. It's government assisted corruption.

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