3 Reasons Capitalism Can Lead to Human Happiness
Capitalism has been the target of much criticism, and it’s been popularly labeled as “exploitative,” “unsustainable,” and “unfair.”
But free-market capitalism is far from bad. In fact, it isn’t even neutral. Capitalism actively creates win-win solutions and benefits everyone who participates.
Capitalism is nothing more than this: the free exchange of goods and/or services between two consenting parties.
In reality, capitalism has been around for millennia. Humans have been trading weapons and food with one another since we first formed into multi-family tribes. Trading even exists today between animals who have no concept of money!
When I go to the gas station, I exchange money for gas. The gas station receives money they need to stay in business, and I receive gas I need to get back home. That’s capitalism.
When you show up for work, your employer gives you money that you use to pay for food and a roof over your head. You give your employer a productive employee that allows them to stay in business. That’s capitalism.
In the swamps of Florida, birds pluck out food scraps from an alligator’s teeth: the birds get a nice mid-afternoon snack, and the alligator maintains healthy teeth and gums. It’s a win-win situation.
In this article, I’m going to explain three reasons why capitalism can lead to human happiness.
But before I begin, let’s clear some things up.
Free-Market Capitalism vs Crony "Corporate" Capitalism
For those that may be wondering, I’m not talking about crony, or “corporate” capitalism, which is different from free-market capitalism.
The best way to think of crony capitalism is to think of capitalism and the government teaming up together to take advantage of consumers and small businesses.
Crony capitalism appears when companies becoming successful in a highly political system. Businesses launch products/services people want, and they become incentivized to use their exuberant profits to stamp out competition via regulations, registrations, licenses and laws. They install these barriers to entry by bribing slimy politicians to make laws favoring these big companies. This is called lobbying.
These regulations and licenses, while passed in the name of “safety,” actually do long term damage to the economy.
This is not a critique of capitalism, but of government. Capitalism, which is two consenting parties agreeing to a transaction, is the reason people could leave damp, dark caves and stroll into cozy houses with AC and a fridge full of food. Capitalism is as natural to humans as breathing.
Government, with the help of alphabet agencies and regulatory bodies, use force to stunt small business growth in favor of the large corporations.
Free-market capitalism, without government intervention, is the greatest ideal we can strive for in our local communities.
Personal Happiness- You Only Succeed by Helping Others
One of the best aspects of capitalism is that in order for a business to make money, they have to provide something of value to the market.
In a free market, those who are motivated by large profits must first begin by offering a useful product or service of value to people. With free-market capitalism, the only way to make your life better is to first make everyone else’s life better!
It doesn’t stop there. As your business expands, you need help running your company. So what do you do? You hire more people. You create jobs!
Entrepreneurs give artists of different skills a medium to succeed
But, as with everything, there are two sides to the situation. Those who oppose capitalism claim businesses are “exploiting” the people. Nobody is forcing you to show up for work, and nobody is forcing you to buy a heated blanket off Amazon. Capitalism, unlike the taxes you’re forced to pay, only happens when you have the choice to say “no.”
People also say that capitalist companies are greedy. In a free-market society, to be greedy means to want to provide others with as much value as possible.
2. The Sky's the Limit
With free-market capitalism, nobody has the power to put a lid on your success except you. There’s no limit to the number of ways you can help others, and therefore there’s no limit to your success.
When you become financially free and independent, you have the ability to pursue any dream you have. Whether it’s starting a small business, buying your dream home, or traveling around the world, odds are money can help you get there.
But money isn’t everything. You also get your time back.
With your newfound freedom, you can start tackling your bucket list of things you’d like to accomplish. Or perhaps you’d donate your money to causes and organizations you want to see succeed. Or you can simply spend your time enjoying all the world’s wonders by traveling with friends.
Free-market capitalism gives you the freedom to do anything and everything. In a free market, your success is unlimited.
3. Capitalism Gives You More Control Over Your Life
In communism, the opposite of capitalism, you’re assigned to work deemed necessary by the government. All of the work is centralized, and you can’t “get ahead” by doing more work. No matter how little or how much work you do, you get the same reward. Most people end up choosing to do less work (shocker, right?).
Under these circumstances, humans are reduced to toddler-like states. The government, acting as “parents,” tell the people, or “kids” what they need to do to get their allowance. They must do so without complaining or resisting, or else.
In free-market capitalism, you’re responsible for yourself.
You’re allowed to own private property, and you can develop skills. If you don’t manage it accordingly, your business fails. But if your business starts making money, you have the opportunity to live on your own terms and be self-sufficient. There’s no government taking your money, telling you what to do, or how to live your life.
In a communist country, you own nothing and everything at the same time. There is no incentive to excel or to “go the extra mile” because everyone must be “equal.”
Self-confidence, something that all-too many people seem to be lacking today, bursts through the seams of life in a capitalist country. People must cultivate self-belief to be successful. Only by taking personal risks and being responsible for the outcomes can one find the self-confidence needed to live a happy life.
Taking on the world as a raw human being and using your skills and knowledge to benefit others brings happiness and a sense of purpose to people in any and every culture.
Conclusion
Capitalism has propelled the human standard of living from cave-dwellers writing symbols on walls to people creating the internet and accomplishing things that were once considered magic.
In short, capitalism leads to human happiness because:
When you offer a valuable new product or service, the consumer wins your product, and you win their money. As your business grows, you create more jobs and give people more opportunities to support themselves.
The sky’s the limit to your success with an entrepreneurial mindset. When you make money, you also create free time and freedom for yourself. Capitalism enables you to live the life you’ve always dreamed of.
When you’re able to successfully provide for yourself, you generate confidence in yourself which shines through your personality.
