Dan McLaughlin

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To Home Page Latest Newsletter Column Archives Click to get these columns for your local paper	© 2006 Daniel J. McLaughlin The Laws Of Nature Survival of the fittest is the law of the wild. There is intense competition in the natural world. The fastest and strongest will eat, the slowest and weakest will not eat or will be the meal. When applied to human relationships, survival of the fittest is a repugnant idea. Fortunately for the human race, survival of the fittest has been replaced in advanced societies by the law of cooperation for mutual benefit. Another name for that cooperation is capitalism. Capitalism is freedom and private ownership of property, or capital. Because individuals are free, they can do what they want with their time. Because individuals own their property and have sole discretion over how it is used, they don’t have to trade or do anything that they don’t believe is to their benefit. This means that, in a truly free, truly capitalist society, every transaction takes place because both parties feel that they will, in some way, be better off after the transaction than before. That is true whether that transaction is for an hour of labor or a multi billion dollar commercial building. After the fact, one or both of the parties may feel they made a mistake, but if both parties didn’t believe, before hand, that they were improving their positions, the transaction would not have taken place. Mother Theresa was a saintly person who, for decades, lived with depravation and devoted her life to the poor people of Calcutta. Obviously, she was not seeking a monetary reward. Her reward was spiritual. If, however, she didn’t believe that the spiritual reward was greater than the hardships endured, countless people would not have been touched by her mercy. She did it because she felt the benefits outweighed the costs. That is the nature of all human action. People act when they think the benefits outweigh the costs. Even people subject to the most brutal totalitarian dictator use the same logic. It is unfortunate for them that they have to weigh the possibility of severe punishment or death into their costs. It is a wonderful thing for those of us living in relative freedom that we don’t have to bear the extreme burden of costs that they do. That is the reason that freedom correlates with prosperity. When individuals trade their time and skills or their property for mutual benefit, wealth is created. Production is the use of human time and effort to transform something of less value into something of higher value. The greater the degree of protection of individual freedom and property rights, the higher the incentive to produce and cooperate, and the better off all people in that society will be. Socialism is the opposite of freedom. It is individual submission to the collective will of the people. Socialism is the state, or collective, ownership of property. Ownership implies the power to make decisions over the use of that property. Any time the government makes decisions for us or takes away our ability to use our property, it reduces freedom and inflicts a degree of socialism, with all of the ills that accompany it. Socialism is correctly identified with democracy, because the “collective will” rules, and individual rights are forfeited. That cruel reality is why the founders of America explicitly rejected democracy and equated it with tyranny. America is not a democracy. The Declaration of Independence and the bill of rights form the firm foundation that is intended to prevent abuse of individual rights by the whim of the majority or zealous politicians, even if they have the best of intentions. It is a tribute to the power of capitalism and freedom that, in spite of the increasing socialist burden placed on Americans by irresponsible government, we’re still world leaders. Many people are concerned that we are losing that leadership position. Other developing countries are catching up. How can that be surprising when business and individuals are more and more hobbled by government mandated uncompetitiveness? The countries that seem to be the greatest threat are those that have embraced some level of free markets. Rather than being a threat, however, their increasing efficiency should bring benefits to all people free to trade with them for mutual gain. Americans can still be competitive with citizens of any other nation. Removing the shackles placed on them by regulation, political manipulation and taxation will free anyone in America to trade for mutual benefit with anyone else. That freedom made America great. Only that freedom will ensure our leadership in the future.
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Daniel Mclaughlin Copyright © 2006 [Daniel McLaughlin]. All rights reserved. Revised: 03/18/08

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The Laws Of Nature

Survival of the fittest is the law of the wild. There is intense competition in the natural world. The fastest and strongest will eat, the slowest and weakest will not eat or will be the meal. When applied to human relationships, survival of the fittest is a repugnant idea.

Fortunately for the human race, survival of the fittest has been replaced in advanced societies by the law of cooperation for mutual benefit. Another name for that cooperation is capitalism.

Capitalism is freedom and private ownership of property, or capital. Because individuals are free, they can do what they want with their time. Because individuals own their property and have sole discretion over how it is used, they don’t have to trade or do anything that they don’t believe is to their benefit. This means that, in a truly free, truly capitalist society, every transaction takes place because both parties feel that they will, in some way, be better off after the transaction than before. That is true whether that transaction is for an hour of labor or a multi billion dollar commercial building. After the fact, one or both of the parties may feel they made a mistake, but if both parties didn’t believe, before hand, that they were improving their positions, the transaction would not have taken place.

Mother Theresa was a saintly person who, for decades, lived with depravation and devoted her life to the poor people of Calcutta. Obviously, she was not seeking a monetary reward. Her reward was spiritual. If, however, she didn’t believe that the spiritual reward was greater than the hardships endured, countless people would not have been touched by her mercy. She did it because she felt the benefits outweighed the costs.

That is the nature of all human action. People act when they think the benefits outweigh the costs. Even people subject to the most brutal totalitarian dictator use the same logic. It is unfortunate for them that they have to weigh the possibility of severe punishment or death into their costs. It is a wonderful thing for those of us living in relative freedom that we don’t have to bear the extreme burden of costs that they do. That is the reason that freedom correlates with prosperity.

When individuals trade their time and skills or their property for mutual benefit, wealth is created. Production is the use of human time and effort to transform something of less value into something of higher value. The greater the degree of protection of individual freedom and property rights, the higher the incentive to produce and cooperate, and the better off all people in that society will be.

Socialism is the opposite of freedom. It is individual submission to the collective will of the people. Socialism is the state, or collective, ownership of property. Ownership implies the power to make decisions over the use of that property. Any time the government makes decisions for us or takes away our ability to use our property, it reduces freedom and inflicts a degree of socialism, with all of the ills that accompany it.

Socialism is correctly identified with democracy, because the “collective will” rules, and individual rights are forfeited. That cruel reality is why the founders of America explicitly rejected democracy and equated it with tyranny. America is not a democracy. The Declaration of Independence and the bill of rights form the firm foundation that is intended to prevent abuse of individual rights by the whim of the majority or zealous politicians, even if they have the best of intentions.

It is a tribute to the power of capitalism and freedom that, in spite of the increasing socialist burden placed on Americans by irresponsible government, we’re still world leaders. Many people are concerned that we are losing that leadership position. Other developing countries are catching up. How can that be surprising when business and individuals are more and more hobbled by government mandated uncompetitiveness? The countries that seem to be the greatest threat are those that have embraced some level of free markets. Rather than being a threat, however, their increasing efficiency should bring benefits to all people free to trade with them for mutual gain.

Americans can still be competitive with citizens of any other nation. Removing the shackles placed on them by regulation, political manipulation and taxation will free anyone in America to trade for mutual benefit with anyone else. That freedom made America great. Only that freedom will ensure our leadership in the future.

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