The constant drumbeat against economic freedom refuses to subside.  An endless cycle of government interventionism distorts genuine progress, spinning a narrative that it’s capitalism failing society.  This narrative, whether born out of ignorance or manipulation, redirects anger from state-imposed failures onto free-market principles.  The reality is that interventionism shackles capitalism, constraining its potential.  Were genuine capitalism allowed to operate unhindered, society would experience higher prosperity and standards of living.

The public is sold the illusion that each new government measure will improve their lives.  Yet each intervention only manages to create one visible benefit while spawning countless hidden consequences.  While politicians and pundits shine a spotlight on the visible success, the negative impacts remain in the shadows—until they demand even more interventions.  This cycle escalates; each “solution” compounds the damage done by the previous intervention, locking society in a web of escalating regulatory burdens.

One of the most cunning methods the state has devised to seize public funds doesn’t even look like traditional taxation or inflationary policies—it’s regulatory extortion.  Companies, fearing heavy regulations, pay protection fees in the form of political donations or lobbying expenses.  Instead of focusing on expansion or innovation, businesses are forced into political maneuvering just to survive.  What is essentially corporate ransom is euphemistically referred to as “lobbying” or “influence”—yet it’s a drain on economic productivity.

Take the common but misleading label of “robber barons” applied to early industrialists.  This term fails to distinguish between true market entrepreneurs, who thrived by satisfying consumer needs, and political entrepreneurs, who profited through state favors.  Market entrepreneurs succeed by offering better products at competitive prices, winning over customers by choice.  Political entrepreneurs, on the other hand, rely on subsidies, tariffs, and monopolies granted by the state—a true distortion of capitalism.

History offers a clear lesson.  Politicians who claim to support economic growth often undermine it with their interventions.  Every new policy aimed at “fixing” the economy merely breeds more issues, demanding yet more government interference.  In today’s business environment, companies are forced to spend as much energy navigating bureaucracy as they do on innovation and growth.  Instead of economic dynamism, interventionism breeds stagnation, a costly system that misdirects public resources while calling it “progress.”

Reference

Thomas DiLorenzo; How Capitalism Saved America