Where Did My Capitalism Go?

This blog has been silent for too long a time (over six months!), but over the next few weeks I’d like to change that. 

Given the recent events in Massachusetts regarding Scott Brown’s win of that state’s Senate seat, the Republicans now have the ability to filibuster legislative action in the Senate.  Even with this greater balance of power, however, the citizens of this country and our representatives must remain diligent in their efforts to combat the anti-capitalistic tendencies that have emerged from the Democrat’s Congressional majority over the past year.  Now that the Democrats can be stymied by a Republican filibuster, we must be wary of the political wheelings and dealings that can occur on both sides of the aisle.  As the balance of power approaches equilibrium in Congress, the propensity for compromise grows, and the temptation to make a deal in order to push legislation forward can become great.  I urge all members of Congress to resist this temptation. 

This nation was built by those who would not compromise their beliefs, who stood for what they believed in and could not be swayed by gestures of appeasment.  Spirited debate led us to independence and gave shape to our government, but a deal that compromises the morals, values or beliefs of the dealer has no place in the realm of a republic.  Speak for your people, for those you represent, and for yourself.  When you deal in politics as a trader, you speak only for politicking itself. 

Our Congress should be pressed by their public to serve the American and capitalisitc ideals that have made this country the nation that it is today.  Those ideas of spirited competition, freedom from government restriction and unbounded opportunity for all citizens which were so celebrated in early America have been gradually limited  by our government over time.  I can imagine that these ideals might have remained as centerpieces of American business and thought had our politicians been less compromising in their agendas.  It would be an interesting study to find out how we got to where we are in our current state of government, but that’s a conversation for another post.  As far as this topic goes, I believe it is the representatives duty to hold the peoples will at heart whenever decisions are made, and when this will is compromised, the representation of the public is forfeited.

The last article generated a great response so I want to continue along the same general topic: whether or not the government should be charged with protecting the people from themselves, specifically pertaining to the recent tobacco legislation signed into law. The legislation places heavy restrictions on tobacco marketing, primarily to thwart the youth of America from becoming smokers, but also to raise general awareness about the hazards of smoking.

While in the past the tobacco lobby was a definitive wall against such legislation, this time around Philip Morris USA, the nation’s largest tobacco company, turned the tables and seemingly supported the legislation outright. This drew heavy criticism from other cigarette makers with lesser market share that said this new legislation would hinder them from winning a greater portion of the consumer base. Honestly, I have to hand it to Philip Morris…they saw an opportunity and took it. Who needs marketing anyway when you already have the customer addicted to your product? But I digress…

The question is: Does the government really think that covering 50% of a cigerette package with warning labels will deter people from smoking? The health hazards of tobacco are quite well known among the American public. We know that nicotine is addictive, so if you get into the habit, it will be very hard to stop. We know that smoking often leads to cancer, and ultimately reduces one’s life expectancy. I don’t think it’s the label on a package of cigarettes that entices the buyer. The product is what people want (and in a lot of cases, need). I don’t see tobacco sales drastically declining due to this legislation, just for that reason. If the government wants to continue to protect its people from the harmful habit of smoking, they should expect a long term, generational fight; one that should base itself on a new way of thinking rather than reactionary deterrents to the industry.

The most effective thing that the American people (government included) can do to curb the habit of smoking is to educate the youth of the nation. This already happens to a certain extent, but obviously our country (among many others) still has an issue with underage smokers. Banning the sale of candy-flavored cigarettes is a lame solution. A better idea would incentivize good parenting practices; for instance, a program that would give a tax-break to parents that kept their kids from smoking for a set amount of time. Truthfully, I’m against anything like this idea or the new laws since I don’t believe parenting or the tobacco market are any of the government’s business. But if the government’s going to intrude anyway they should address the root of problem (lack of attention when parenting) and not punish tobacco companies for diversifying their product line by reducing their marketing capability.

So far this blog has talked a lot about what is wrong with the most recent steps taken that are dismantling the free market capitalism we have enjoyed. In this entry I’d like to diverge from the negative, and focus on what we can do to let the key players know that their moves away from pure capitalism are highly inappropriate and unhealthy. Let’s focus on two basic ideas for now:

1) Boycott companies that have received federal “bailout” money. Make it known that you are not buying products from those companies, or banking in those institutions, for that specific reason. One of the most powerful ways to make your voice heard within a capitalist system is to use your money. A purchase from one company over the other says that you chose that seller consciously over their competitor. If you publicly express why you entrusted your money to a competitor (or just didn’t buy from a bailed out company) your “money-used-as-a-statement” becomes even more effective. Whether you tell your friends by word of mouth, write an editorial in your local paper or publish your opinions in a blog …anyway you’re able; let the world know your opinion regarding who deserves your dollar the most. A good list (mostly of banks and auto companies) that received federal money can be here.

2) Express your sentiment to your local, state and federal representatives. Talk to the government officials that supported the doling out of taxpayer dollars to failing companies, and let them know that they did a disservice to your community. Let them know that what they did was not in the best interest of their constituents, and that their actions do not represent the values and principles of the US Constitution which they are charged to uphold. Tell them also that come election time, they will not have your vote and that you intend to rally others to vote against them. Then, back your words up with actions.

Tell your representatives that did not support these federal aid packages that you agree with their decision, and admire their willingness to stand up to political pressures in order to preserve the values that we hold dear. Assure them that come election time, they will have your vote as long as they continue their stance upholding the free, capitalistic nature of our society. Then, take action and spread the word that this representative did what was right and voted down the bailout legislation.

This page has a comprehensive list of the US congress votes on the initial bailout package, though I would encourage all to seek out more information regarding any additional legislation recently passed that is of the same ilk.

I’ll be posting more about what an individual can do to get their opinions on the state of capitalism heard in the future, but consider this a good start. If anyone has more ideas feel free to start a discussion on the blog by commenting or email andrew@wheredidmycapitalismgo.com with ideas.