Tuesday, January 29, 2013

I overheard a conversation at a nearby table at an Italian restaurant, and the table had an air of satisfaction due to their discussion.  They were joyously touting generosity and musing about how "if only" people understood how good it felt to be generous they wouldn't support capitalism.  There are several assumptions present along with a fundamental misunderstanding.  The fundamental misunderstanding is the failure to realize that generosity can only be a personal endeavor or the failure to realize that capitalism is not an individual's system but a group's system.
   You might think that a group can be generous.  While it is true that a group may collectively make the decision to give something, generosity only exists to the extent to which each individual gave freely their own assets.  If the group such as a government takes the money of some and gives it to others, it is not generosity on the government's part because they took what they gave from someone else with the threat of violence if the people disobeyed to give it.  That is called theft, and therefore it was never righteously the government's to give.  Generosity requires righteously owning an object before giving it away.
    It is only in a capitalist society or a free society where people are free to create value where generosity can exist.  If the right to be generous is partially through taxing people, such as in a partially socialist or fully socialist society, those people are no longer capable to freely give their money.  So I say, if only people knew how good it felt to be generous they would never identify as a socialist.
   Simply the act of participating in the exchange of capital results in a society that has a much lower need for generosity and a much higher ability for people to be generous.  If the making of a product doesn't create value, people generally won't buy it and the manufacturers would have to stop or sacrifice heavily.  If the product does, it will generally be made for a long time.  That being said, when a person makes a product, for himself he sacrifices in order to create value.  For example, if a man takes a piece of wood valued at 2 dollars, some string valued at 1 dollar, and a spool valued at 3 dollars, then sells the fishing rod he creates at 10 dollars, then that man literally created 4 dollars worth of value out of thin air.  But take note: the man who purchased the fishing rod valued it at 30 dollars, and for him, 20 dollars was created out of thin air from the entrepreneur's work.  So in that sense, a charity of 20 dollars was generously given by the mere transaction.  In a capitalist economic system.

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