Home
/
RELIGION & LIBERTY ONLINE
/
Capitalism, cronyism, and socialism
Capitalism, cronyism, and socialism
Jul 4, 2025 3:53 AM

“Having a heart for the poor isn’t hard. Having a mind for the poor…that’s the challenge.” –Poverty, Inc.

This quote from the documentary Poverty, Inc. highlights the reason why so many people are willing to give their money to foreign aid, without necessarily understanding its harmful effects. This quote can also shed some light on the recent embrace of socialism by many millennials.

When young people look at the rate of poverty in the U.S. and see that we are not doing as well as some other developed countries, it is easy for them to place this blame on what they believe is “capitalism.” If capitalism has caused the U.S. to experience this poverty then it logically follows that people today, especially millennials, would embrace socialism instead of capitalism.

Given that I am a millennial myself, this makes sense to me. It’s clear that we care about these causes and that we are willing to give our time and money. That’s the easy part. We have a heart for the poor. The challenge is having a mind for the poor.

Having a mind for the poor may seem like a challenge, but it’s certainly not impossible. It all begins with a basic understanding of economics. It is not capitalism that makes people poor, but the crony capitalism that creates a two-tiered society. Socialism does not help the poor, but bination of moral principles and free-market capitalism does. Sam Gregg recently highlightedhow free-markets revived West Germany’s stagnant socialist economy in 1948.

Up until recent political movements, this was rarely debated among the different sides of the political spectrum, especially among the major political parties. Many understood that the power of the free-market was the leading tool used in alleviating poverty.

Economics does not change because of current political and social movements. All that changes is the way that people understand economics. What was once understood as free-market capitalism became horribly mistaken for a big government that chooses winners and losers in the economy. Crony capitalism and free-market capitalism are now grouped together as simply “capitalism” and capitalism has e public enemy number one for millennials and other “social justice warriors.”

Last January, the hashtag #resistcapitalism trended throughout the world on Twitter. Do the people who belong to this movement truly understand what capitalism is?

Socialist/Communist/Anti-capitalist history is heroic! A fight for humanity and for this planet! #ResistCapitalism /KGnEyLScGK

— TayGo (@taygogo) January 8, 2016

This tweet using the hashtag #resistcaptialism, claims that “Socialist/Communist/Anti-capitalist history is heroic!” I can’t think of one situation when socialism munism was “heroic.”

There is something genuinely appealing about belonging to a movement that claims to be for the underdog and against the establishment. It’s appealing to belong to the camp that claims to care for the less fortunate and is actually talking about these issues. This is why a previously unknown senator from Vermont was able to start a movement that quickly attracted millions of followers. Everything about his “democratic socialism” sounds good but none of it makes any economic sense at all.

When college students are asked what they like about Bernie Sanders, one student replies with “I like socialism!” I wonder if she truly knows what socialism is. Or does she know of all the harm that socialism has caused? One phrase that I often hear from millennials is “I don’t know the economics of socialism, but look, it’s working in all of the Nordic countries.”

How can people who know practically nothing about economics and claim to want to help the poor be so quick to embrace an economic system that is responsible for the death of millions of people?

Murray Rothbard once said, “It is no crime to be ignorant of economics… but it is totally irresponsible to have a loud vociferous opinion on economic subjects while remaining in this state of ignorance.”

We cannot let the ignorance of economics blind us to the most effective ways of bringing about poverty alleviation. Instead, we should use what we know about economics to approach the issue of poverty in a way that has proven to be successful. Before we can begin to talk about helping the poor, not only in our country but all across the world, we need to educate ourselves on the differences between capitalism, cronyism, and socialism. We need to educate ourselves on what works and what doesn’t.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
The Blue-Cold Child
From Flannery O’Connor’s The Violent Bear It Away: God told the world he was going to send it a king and the world waited. The world thought, a golden fleece will do for His bed. Silver and gold and peacock tails, a thousand suns in a peacock’s tail will do for his crib. His mother will ride on a four-horned white beast and use the sunset for a cape. She’ll trail it behind her over the ground and let the...
Undercover Boss Celebrates Female Dehumanization
To end the 2014 on an incredibly dehumanizing note, CBS aired an episode of Undercover Boss that stirred up protests from all walks of life. Undercover Boss is usually a wonderful program that allows CEOs to see what is happening on the ground in panies and reward hard workers accordingly. However, this particular episode profiled Doug Guller, the CEO of Bikinis Sports Bar & Grill, who fired a bartender after she decided not to dehumanize herself by wearing a T-shirt...
Radio Free Acton: Remembering Holodomor with Luba Markewycz
In this edition of Radio Free Acton, Paul Edwards speaks with Luba Markewycz of the Ukrainian Institute of Modern Art in Chicago, Illinois about the Holodomor – the Great Famine of the 1930s inflicted on Ukraine by Josef Stalin’s Soviet Government that killed millions of Ukrainians through starvation. They discuss the Holodomor itself, and the process undertaken by Markewycz to create an exhibition of art by young Ukrainians memorate the event. You can listen to the podcast using the audio...
Why Do Black Lives Matter?
“Black lives matter.’ ‘All lives matter. These slogans may forever summarize the deep tensions in American life in 2014,’ says Anthony Bradley in this week’s Acton Commentary. “We can loudly protest that “Black lives matter” but it will mean nothing in the long run if we cannot explain why black lives matter.” Black lives matter because black people are persons. One of the greatest tragedies in American history was the myth that America could flourish without blacks flourishing as persons....
Pope Francis, World Day Of Peace And Human Trafficking
January 1, for Catholics, is celebrated as the World Day of Peace. For January 1, 2015, Pope Francis’ message is a reflection on the horror of human trafficking. Entitled No Longer Slaves But Brothers And Sisters, the pope’s message calls trafficking an “abominable phenomenon” which cheapens human life and denies basic human rights to those enslaved. Taking his theme from St. Paul’s letter to Philemon, Pope Francis reflects on human dignity and true fraternity among all peoples. Pope Francis prayerfully...
The Year in Acton Commentary 2014
Every Wednesday we publish the Acton Commentary, a weekly article that covers topics related to Acton’s mission. As es to a close I thought it would be worth highlighting the mentaries that have been produced by Acton Institute staffers over the past year. Rev. Robert A. Sirico A Dangerous Moment with Promise The Holy War on Corporate Politicking Pope Francis, without the politics The Holy War on Corporate Politicking Pope Francis, without the politics Samuel Gregg Poverty, the Rule of...
A Dangerous Moment with Promise
In this mentary, Acton president and co-founder Rev. Robert A. Sirico reflects on Christmas, but also on the things weighing heavily on many hearts. Despite this being a joyful time, we are caught in perilous moment in history due to the meeting of various things: intellectual, financial, militarily, and theologically. President Ronald Reagan gave a similar address in 1981: Rev. Sirico says: How to get to the heart of the matter? That, as Shakespeare might say, is the rub. Yet,...
Nothing New ‘Underneath that Burning Sun’
Friedrich Hayek once called intellectuals “professional secondhand dealers in ideas.” And the Preacher proclaimed, “There is nothing new under the sun.” So perhaps it shouldn’t be surprising when ideas, memes, and other cultural phenomena pop up again and again. There is, however, a notable correspondence between an Acton Commentary that I wrote earlier this month, “The Worst Christmas Song Ever,” and a piece that appeared weeks earlier at The Federalist. In “‘Do They Know It’s Christmas’ Is The Worst Christmas...
10 Things Political Scientists Know That We Don’t
“If economics is the dismal science,” says Hans Noel, an associate professor at Georgetown University, “then political science is the dismissed science.” Most Americans—from pundits to voters—don’t think that political science has much to say about political life. But there are some things, notes Noel, that “political scientists know that it seems many practitioners, pundits, journalists, and otherwise informed citizens do not.” Here are excerpts from Noel’s list of ten things political scientists know that you don’t: #1. It’s The...
Poverty Imagery and the ‘Christmas Song’
In last week’s mentary, “The Worst Christmas Song Ever,” Jordan Ballor touched on the well-intentioned yet harmful message shared by “Do They Know It’s Christmas?” the 1984 song produced by the music group, Band Aid, in response to the famine that struck Ethiopia. Ballor describes the context and some of the song’s lyrics: The song describes Africa largely as a barren wasteland, ‘Where the only water flowing is the bitter sting of tears.’ It continues in this vein. Africa, the...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved