“When plunder becomes a way of life for a group of men, They create for themselves, in the course of time, a legal system that authorizes it, and a moral code that glorifies it.”
F. Bastiat, political economist, 1850
After watching Capitalism: A Love Story by Michael Moore, I thought about what i had learned in economics while in university. I haven’t really gotten into economic theory since graduation to be honest, but something that was firmly drilled in my mind was – reduction of government regulation, reducing tax – will stimulate the economy through increased consumer spending. Over time, the increased economic growth will generate a larger tax base, which will recoup the revenue lost from the tax cut.
Anybody can see what a sham this theory is. Reducing taxes on the rich and businesses creates spending? That would assume they put the tax savings back into the businesses. That doesn’t happen. Today’s masters of the universe got filthy rich by using the Reagan tax breaks and investing in THEMSELVES – not the businesses or workers. Hence, no increased consumer spending, no increase in the tax base. EPIC FAIL.
I have to say I agree with the overall premise of the movie : Wall Street screwed us. They need to be regulated, instead we give them more money. Also there needs to be moral consciousness brought back into business. Business should not be just about maximizing profit. It has to take account of the workers, the environment, the long term consequences. This insatiable greed as taken over US – which is why capitalism is defined as evil in this movie. Its become corporatism and it needs to stop before it spirals out of control again. I am surprised it wasn’t nominated for an Oscar. Moore does have a bad habit of painting good guys vs bad guys, instead of just sticking to the facts, but thats also what makes the movie very entertaining at times.