There are few people in this world who act according to their true nature. The outside world doesn’t effect who they are on the inside. They can’t be bought or corrupted. The vast majority of people on this planet are either chasing pleasure or avoiding pain. Living in a constant state of internal conflict between desires and fear. Carrot or the stick. Risk and reward. Advertising plays on these primal conflicts. In my other posts here and here I wrote about culture and more specifically about the culture behind free market capitalism/voluntarism.
In a system where everyone is equal and people don’t use force to get their way. The only option is to work together through voluntary and mutually beneficial transactions. When societies works together they create abundance. This happens because there is a synergy effect between people.
Let use a grocery store as an example. In this store there is a bakery, produce department, meat department, grocery department, etc.
- This makes it convenient for customers to buy everything at one place saving them time and money.
- Its also convenient for the suppliers, since they can ship a lot of product to one location cutting costs.
- Employees benefit because they can specialize their labor becoming more productive (earning higher wages) and acquiring experience.
- Employers benefit by simplify by tasks, it lowers the entry bar for new employees.
- The shareholders benefit. Selling a greater variety of products allows them to lower their margins on individual product, bringing in more customers increasing overall profits.
- The community benefits through economic activity, retailers tend to develop around each other.
- People tend to network around retail spaces.
- These are just a few benefits.
When people work together their labor efforts don’t add 1 to 1, there is a synergy multiplier effect caused by complimentary skills. Instead of $10/h worth of work they can now do $30/h. Don’t believe look into assembly lines and how the core concept applies to all fields. Productivity explodes in free market societies.
If people live below their means they can invest their excess capital into the markets earning a ROI. Over time people tend to become more valuable to the markets as they acquire more skills. This leads to increase income and more investments (if they are smart). The point being you might start off with very little market value and net worth in your early years of life only to retire wealthy.
The very nature of free markets drives people to become more productive and to be better versions of themselves. No one wants to do business with horrible people causing them to be more respectful. By reinvesting excess labor, investors can benefit everyone and from everyone. Its a win win.
People have been writing, making videos and podcasts about free markets for years. I may not be able do it justice due to my personal limitations. If you are willing to go down the rabbit hole you will find it makes the world a better place. It pushes us to become the best we can be. It brings peace and stability. The economy grows by people solving problems (creating value). Unlike socialism, free market capitalism benefits society. I think my next post will be about how free markets can solve discrimination.
Current/Former Socialist Countries | How Socialism Ruined Venezuela | Somalia is a failed socialist state, Mises has an interesting article on its recovery here
Calling it now, I think South Africa is next to go down the Socialist Shit hole paradise route.