Capitalism and Inequality, you can’t have one without the other.

The notion of equality is ballyhooed in many circles. There is the natural equality of man. There is equality under the law. However, do not be confused about economic equality. In a free-market system, equality is the starting point not an end (disregard prior-determinates). It is important to view free-market capitalism without Social-colored glasses. The basic premise is inequality. The maxim is scarcity. Economics 101 gives us this premise. Consequently, countries try to expand the base of goods by employing the labor and /or natural resources of other countries. This can be done in numerous ways: war, theft, treaties, liberal economic strategies and the ephemeral globalization we see today.

Globalization is an immense topic for academics and politicians alike. Everyone from Joseph E. Stiglitz to Jagdish Bhagwati reveal the demons and angels of this global network of trade, commerce, ethnic strife and governmental upheaval. I concur with F.A. Hayek, where capitalism and free markets grant indivduals the most choices within the constraints of any economic system. He also reveals that regulations many be needed. In other words, the invisible hand must be occasionally washed .

We have, in our infinite primate wisdom, chosen this ruthlessly competitive economic structure. I will even go as far to say that it is the only economic system which best suits our animalistic nature. Our Hobbesian- reptilian brain is more at ease in an economic market of ‘dog-eat-dog’. The competition of a free market is natural, even though paradoxically unequal. Thus, when the UN establishes that, "Ignoring inequality in the pursuit of development is perilous," …"Focusing exclusively on economic growth and income generation as a development strategy is ineffective, as it leads to the accumulation of wealth by a few and deepens the poverty of many." This is the creature we have created. You can’t have one without the other.

In juxtaposition, socialism cripples choice and renders opportunities empty. Communism crushes innovation and debilitates free thinking. Anarchy will thrust us into an abyss of violence, fear and perpetual war. Free-market systems are not prefect and it will never create a utopia, however it avails the most opportunity for change. Globalization is just a precursor to a much deeper and more expansive free-market structure. What is needed in this time of economic re-birth (within the developing world) is real commitment to free-market structures, from developed as well as developing countries.

In other words, some countries do not need to privatize their entire water, oil or natural resources to be seen as partners in the market system. Slow and gradual change will help stem the tide of ethnic upheaval and strengthen the bonds of governmental legitimacy between the people and the elected. So when, “the United States recently introduce(s) more than 750 amendments that would eliminate new pledges of foreign aid to poor countries, instead focusing on issues such as terrorism and security.” This sends a mixed message, and after a mixed message is received most countries will fall back into old grooves of market manipulation and systematic underdevelopment. The US government is the most important player in the international scene for free-market development. Thus, it will take more than Shell or Exxon Mobil to facilitate free-markets. Governments can help with free-markets; business will only help with monopolies, for you can’t have one without the other.