E It Is 1% Capitalism That Is The Problem

Trouble is that if they look into the libraries of mainstream economics or even Austrian economics et hoc genus omne, they cannot find the answers. They can only get confused.

Here is the literature that they should absorb: First, a paper written by Benjamin Franklin, yes the same Benjamin Franklin who instigated the War of Independence—and helped us win it, only to lose it to Alexander Hamilton, who created the Bank of the United States on the model of the Bank of England, whose requests had created the need for the insurrection of the Colonists in the first place. 

Yes, it is Benjamin Franklin who worked indefatigably for the proclamation of the United States Constitution in whose Article 1, Section 8, we find that members of Congress, the representatives of the people, have the (implicitly exclusive) power to “coin Money” and “regulate the Value thereof.”

Not only Oresme, the writer of the first treatise on money in the 14th Century, the creator of Gresham’s Law that bad money drives good money out of the economy by hoarding it; it is not only Oresme who declared that “coinage belongs to the public, not to the prince.” Even Adam Smith believed that the effective control of money and loans by an independent, Central Bank would create an institution that could promote the fortunes of those who were charitable (the sober people) while penalizing/neutralizing those who were greedy (the prodigals, projectors, and imprudent risk takers).

Did not Adam Smith also say: “All for ourselves and nothing for other people, seems, in every age of the world, to have been the vile maxim of the masters of mankind.“ Is not this streak of Adam Smith’s thought kept under strict wrap?    

The second set of literature and commentaries to absorb concerns Progress and Poverty by Henry George.

The third set of literature is the output of Louis D. Brandeis.

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Disclosure: Carmine Gorga is president of The Somist Institute and a former Fulbright Scholar.

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Gary Anderson 2 years ago Contributor's comment

Great article, and thoughtful. Certainly we are failing where China is succeeding. That communists can run capitalism better than the capitalists is certainly disconcerting. But it shows the weakness of letting the 1 percent write all the laws. Belt and Road is proof of what I say: talkmarkets.com/.../belt-and-road-the-sri-lanka-china-port

Doug Morris 2 years ago Member's comment

Couldn't have said it better.