Plundered promise Book

When reading anything associated with the Von Mises institute you will always get a contrarian view to just about everything you learned in school. Nothing different in this great book by Prof. DiLorenzo.

Chapter 1: "What is Capitalism" points out the main ideas associated with this form of economy. Because everyone has different needs at different times, it is impossible for the economy to be centrally planned and have it work out, i.e Soviet Union, Cuba, & Old China among others. In a free market economy the division of labor is so important for increasing production and reducing costs, allowing the average person today to live better than Kings did several hundred years ago. The main concern in capitalism is property rights, people cannot fully expect to build wealth if their property is not protected from theft, damage or burdensome lawsuits.

Chapter 2: "Anti capitalism" discusses the powers that control the message the public gets, like teachers, ministers, priests, radio and television hosts, & writers of all sorts about how capitalism destroys rather than what it actually does which is create a better standard of living for all people. Anti capitalists see economic inequality and it never dawns on them that it is that way because people have different desires and talents and those have different value to the consumer. In the market place we are not coerced to buy products, its a transaction where one person wants a product or service more than they want their cash. With the anti capitalist who wants a more egalitarian society must do it through coercive actions because people work and strive for their own self interest, not to pay the sluggards way through life.

Chapter 3: "How capitalism saved the pilgrims" looks at how the lack of property rights in the beginning of our country led to a poor work ethic by those who were required to work hard for the communities well being rather than there own, leading to many deaths from starvation.

Chapter 4: "Americas capitalist revolt" discusses how the people rose up against the politicians who were again trying to bring about a mercantilist system even though they fought a revolution to stop abuses. The politicians could not retreat from the idea that government can help make it all better, even though under close examination its almost never the case.

Chapter 5: "Highways of Capitalism" In this chapter you will see that very little changes with human beings. The politicians 200 years ago thought the peoples money was theirs to do what they pleased, and today they still act the same way. Building highways and canals was a source of pain between the governing parties with those who wanted private business to get this done and those in government who wanted to tax and print to expand transportation. After reading this you'll see why we must be up in arms every time the government tries to push for more spending. In other words ready to be up in arms 24/7.

Chapter 6: "How capitalism enriched the working class" looks at how entrepreneurship, capital investment, & hard work created a better world for the working class. The more things that can be produced because of better equipment, more labor, better modes of transportation the better it is for everyone. People had it hard because of the lack of these things, not because the rich were exploiting the poor. This chapter shows why wages rose, why child labor & workplace accidents were declining, the real truth on income inequality, and some information on the beloved Labor Unions. The author asks the question that if Labor Unions are so good why do companies go to great lengths to avoid them.

Chapter 7: "The truth about the robber barons" we hear stories about the evil rich constantly, and there is no doubt there are some, but back in the 1800's many of the men who transformed the world were greatly enhancing it through innovation and reduced costs to the consumer.
He explains that more often than not, it was the men who were getting subsidized by the government who were the true robber barons. Many being subsidized failed while the giants of industry, Vanderbilt, Carnegie & Rockefeller made amazing advancements in production of their particular industry, controlling large percentages of it but still lowering costs for the consumer, so much for monopolies.

Chapter 8: "Antitrust myths" In this chapter you can easily sour on any remaining love you have for the goodness of government. When government helps it almost always hurts the consumer.

Chapter 9: "Did capitalism cause the great depression" Of course not, but government officials & classroom teachers and the average citizen sure seems to think it did. Why is it when Presidents have cut the size of government and lowered regulations the economy gets back to growing. DiLorenzo goes over some of the causes from the hyperactive state and why they lead to years of pain for the American middle class and poor, leaving less ability to create wealth for themselves and others by the rich.

Chapter 10: "How the new deal crippled capitalism" For those who love FDR he does not fare well here nor should he. If you don't feel like reading this chapter just look at President Obama and that should sum it up for you. Its funny how FDR condemned deficit spending in his
campaigning then exceeded anything Hoover would do. Its funny that one of his main economic advisors Rexford Tugwell was sympathetic to communism (Van Jones) and his own staff was tired of him spending money as unemployment remained high. (Do you see a parallel) Why we hold people like this in esteem is beyond me, the author sure doesn't.

Chapter 11: "Did capitalism cause the energy crises" Just like in every case if the free market capitalist were left alone to do the job that benefits themselves the most, with the government doing its job of protecting property, and prosecuting those who harm others property there would be no crises anywhere. This chapter goes through all the ways the government stands in the way of progress. If you don't get in bed with government as big business they will eventually come after you with regulations or antitrust lawsuits. (Ask Bill Gates) The author is not claiming that anyone can be free to do bad things, but until bad things are done they should be left alone. When this chapter looks at some de-regulation in the energy industry, as with others, it is evident that things get better.

The conclusions drawn at the end chapter are that there is a war on capitalism, from those who really don't understand how markets work, who don't understand that people bring different talents to the workplace and will earn more or less depending on what those are. Everytime we turn around another road block is put up in front of businesses across the country, making it more expensive and dangerous to do business. Entrepreneurs have to spend time sucking up to government rather than focusing on innovation. Think about how worked up you get when you have to follow silly rules at a job, now think about how you'd feel if you had to pay to follow those silly rules. That's what business owners live with every day.