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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Friday, January 25, 2008

Bill Gates Should Stick To Computers....

What is the better path to prosperity? Economic freedom or some other system?

Taking hallucinogenic drugs in the World Economic forum in Davos, Bill Gates has opened his $35 billion mouth and let slip out some astonishing stupidity...
Mr. Gates says he’s grown impatient with the shortcomings of capitalism. He thinks it’s failing much of the world, and he’s slated to say as much in a speech later today at the World Economic Forum in Davos, Switzerland.
So lets just look at our neighbor China. During their communist/socialist days, they were not burning up the world with their innovations but where constantly fighting starvation and mired in desperate poverty. As this sad state of economic affairs transformed from state decision making towards more freedom for human and monetary capital, 100's of millions were lifted out of poverty and there has developed a middle-class.

So how has capitalism failed them? It hasn't. What has happened, is that there are no longer singular decision makers in china but millions that make judgements and in aggregate that allows capital and labor find its most productive and highest return uses. Lets be clear, things in China are still far from ideal, but they have unshackled the people to make the best of their lives and create a better world for their children and families. The unresolved shortcomings in China still revolve around self-interested government officials and their desire to do what is best for them and not necessarily the people that they supposedly represent.

If one looks at other failures, like most African countries, its not the economic system that has failed, but the political system and its inability to support a vibrant capitalistic system that frees up human and monetary capital to its most productive uses. Furthermore, evidence to the contrary can be found in failed economic states such as Cuba, the declining Venezuela and teetering Iran.

It is important to keep in mind, that sports stars that may be good at playing with a ball, may not be the most intelligent commenters on physics. The same holds true with billionaires, that have been lucky enough to create something that the world holds valuable but may not have realized the complicated market forces that made the product so valuable. also, keep in mind the many many people like him that worked hard, with vision and diligence that didn't make it. As important to his success, is the failure of others, where we learn valuable lessons and provide the competition to the successful ones to improve and make their offering better.

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