The revolution in higher education is coming. There will soon be several new and very high quality universities that will protect and appreciate Jews. It will be important to teach the realities of commerce.
There is no such thing as ‘capitalism.’ There is only ‘commerce.’ ‘Capitalism’ is a term that comes from Karl Marx who had an erroneous theory of labor as the source of prices. Simply, the cost of goods sold is equal to the labor input to the goods and services plus a payment for capital, plus whatever the ruling class can force on to the top of the cost. That explains virtually nothing in commerce, which is why the labor theory of capital was never taught anywhere in economics. It doesn’t explain rent, the prices of land nor anything else. The market prices of commodities vary continually as do the price of equities. No relation to labor.
‘Commerce’ on the other hand is not a homogeneous entity. It has three separate components. Trade, Clientry, and Industry.
Trade is usually a single proprietor often with hired workers. The trader buys goods and marks up the price for sale based on the various costs, the volume of sales expected and the amount of lending needed to make the sales happen, plus a markup to keep the business running over time. A flower shop or a small bakery are good examples. The French and the Overseas Chinese are masters of ‘trade.’ There are flower shops and bakeries anywhere there are French. There are stalls or storefronts with single categories of goods wherever there are Overseas Chinese.
Clientry is the form of commerce that is designed to provide goods or services for the lifetime of the buyer. A barber or dentist are good examples. The price of the good or service is based on the market price and the level of skill of the seller. Clientry is based on a lifetime of service as the horizon for pricing. Surprisingly banking is a clientric business, with the intention of the seller or lender to maintain a long-term relationship with the customer, but bankers seldom have the sense of devotion to the customer found among lawyers and architects.
Industry is the type of business designed to maximize economies of scale. It is found wherever multiple stores, or large capital investments are operating. Every chain business is designed to benefit from economies of scale as are all the entities we call industry; railroads, steel companies, airlines and McDonald’s.
Commerce thrives in societies that value markets, societies that restrain the power of government, and societies that are open to individual initiative.
Government bans are a great restraint on the nature and quality of business. Government’s absolute bans on silver restoration, cleaning solvents, and metal plating are a tiny example of the tens of thousands of businesses that are foreclosed by unreasonable and disproportionate government restrictions.
Commerce is 98.3% cooperative. The very nature of commerce is that hundreds, thousands, and sometimes, millions of people cooperate with each other daily. They cooperate within businesses, between businesses as suppliers, and as renters, advisors and colleagues.
Yet the popular image of competition is the paramount mode of thinking about business. Commerce is cooperation on the grandest scale known to humans.
Lastly, commerce thrives where diversity of opinion, diversity of experience, and diversity of values are allowed to work together. Merit is the milieu for commerce that creates vigor and innovation.
Someday more people will understand commerce and the world will be a better place.
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