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Sat Dec 1, 2012, 08:26 PM

Capitalism is not the enemy. Capitalism has improved the Lives of millions. [View all]

In general, life on planet earth has improved. Capitalism, has produced great advances for humanity and uplifted the standard of living of the poorest. The days of massive famines killing millions in China and India are over. In general, the world is much off.

While there are certainly many facts that I could use to back this up, one of the most convincing is Daily Calorie Intake Per Capita per each country in the world. A very interesting chart can be found by the following link. It shows each country globally and caloric intake from 90 onward.

http://chartsbin.com/view/1150

One thing comes across. While there are certainly some notable exceptions (i.e. The Congo), the developing world is getting more to eat on a whole. Moreover if the chart went back further, the gains would be even more profound. Capitalism, as a whole, has a positive effect on the lives of people. THere are poor people, but in general, they are better off. They are much better off then the centrally controlled systems in the old USSR or even in India of the 1950s.

Then, what is the problem today? I would suggest the problem today isn't capitalism, but an understanding of how to maximize the benefit of capitalism. Keynesian economics is basically right, in that it is demand that drives the system. Governments have an important role in helping to build a middle class and helping to ensure increased consumption. Use of the government to moderately redistribute some wealth is actually essential for a capitalist society to continue to grow economically. Doing so increases consumption and continues to fuel the system. While such redistribution can go to far and hurt growth, a progressive tax code(for example) helps economic growth.

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