Home
/
RELIGION & LIBERTY ONLINE
/
Capitalism, cronyism, and socialism
Capitalism, cronyism, and socialism
Jan 12, 2026 4:27 AM

“Having a heart for the poor isn’t hard. Having a mind for the poor…that’s the challenge.” –Poverty, Inc.

This quote from the documentary Poverty, Inc. highlights the reason why so many people are willing to give their money to foreign aid, without necessarily understanding its harmful effects. This quote can also shed some light on the recent embrace of socialism by many millennials.

When young people look at the rate of poverty in the U.S. and see that we are not doing as well as some other developed countries, it is easy for them to place this blame on what they believe is “capitalism.” If capitalism has caused the U.S. to experience this poverty then it logically follows that people today, especially millennials, would embrace socialism instead of capitalism.

Given that I am a millennial myself, this makes sense to me. It’s clear that we care about these causes and that we are willing to give our time and money. That’s the easy part. We have a heart for the poor. The challenge is having a mind for the poor.

Having a mind for the poor may seem like a challenge, but it’s certainly not impossible. It all begins with a basic understanding of economics. It is not capitalism that makes people poor, but the crony capitalism that creates a two-tiered society. Socialism does not help the poor, but bination of moral principles and free-market capitalism does. Sam Gregg recently highlightedhow free-markets revived West Germany’s stagnant socialist economy in 1948.

Up until recent political movements, this was rarely debated among the different sides of the political spectrum, especially among the major political parties. Many understood that the power of the free-market was the leading tool used in alleviating poverty.

Economics does not change because of current political and social movements. All that changes is the way that people understand economics. What was once understood as free-market capitalism became horribly mistaken for a big government that chooses winners and losers in the economy. Crony capitalism and free-market capitalism are now grouped together as simply “capitalism” and capitalism has e public enemy number one for millennials and other “social justice warriors.”

Last January, the hashtag #resistcapitalism trended throughout the world on Twitter. Do the people who belong to this movement truly understand what capitalism is?

Socialist/Communist/Anti-capitalist history is heroic! A fight for humanity and for this planet! #ResistCapitalism /KGnEyLScGK

— TayGo (@taygogo) January 8, 2016

This tweet using the hashtag #resistcaptialism, claims that “Socialist/Communist/Anti-capitalist history is heroic!” I can’t think of one situation when socialism munism was “heroic.”

There is something genuinely appealing about belonging to a movement that claims to be for the underdog and against the establishment. It’s appealing to belong to the camp that claims to care for the less fortunate and is actually talking about these issues. This is why a previously unknown senator from Vermont was able to start a movement that quickly attracted millions of followers. Everything about his “democratic socialism” sounds good but none of it makes any economic sense at all.

When college students are asked what they like about Bernie Sanders, one student replies with “I like socialism!” I wonder if she truly knows what socialism is. Or does she know of all the harm that socialism has caused? One phrase that I often hear from millennials is “I don’t know the economics of socialism, but look, it’s working in all of the Nordic countries.”

How can people who know practically nothing about economics and claim to want to help the poor be so quick to embrace an economic system that is responsible for the death of millions of people?

Murray Rothbard once said, “It is no crime to be ignorant of economics… but it is totally irresponsible to have a loud vociferous opinion on economic subjects while remaining in this state of ignorance.”

We cannot let the ignorance of economics blind us to the most effective ways of bringing about poverty alleviation. Instead, we should use what we know about economics to approach the issue of poverty in a way that has proven to be successful. Before we can begin to talk about helping the poor, not only in our country but all across the world, we need to educate ourselves on the differences between capitalism, cronyism, and socialism. We need to educate ourselves on what works and what doesn’t.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Lithuanian Priest and Free Market Advocate to Receive Acton Institute’s 2010 Novak Award
Lithuanian scholar and Roman Catholic priest, Fr. Kęstutis Kevalas, is the winner of the Acton Institute’s 2010 Novak Award. During the past nine years, Fr. Kęstutis Kevalas has initiated a new debate in Lithuania, introducing the topic of free market economics to religious believers, and presenting a new set of hitherto unknown questions to economists. Fr. Kevalas is a respected figure and well known expert on Christian social ethics, the free market, and human dignity to the people of his...
Haitian Government: ‘Give us our fair share.’
The AP reports that of the roughly $379 million spent by the US government on relief efforts in Haiti, less than 1% has been in the form of direct government to government aid. This has plaints from the Haitian president, Rene Preval, who says his government isn’t getting its fair share. According to the report, Preval spoke at a news conference plained, “There’s a perception of corruption, but I would like to tell the Haitian people that the Haitian government...
Obama to Small Businesses: I’m from the government, and I’m here to help.
In last night’s State of the Union address, President mented that “even though banks on Wall Street are lending again, they’re mostly lending to panies. Financing remains difficult for small-business owners across the country, even though they’re making a profit.” He then offered some of our tax dollars to help: “So tonight, I’m proposing that we take $30 billion of the money Wall Street banks have repaid and use it to munity banks give small businesses the credit they need...
Will America Help the Persecuted Copts of Egypt?
Protection and justice for the Egyptian munity is an issue that is very close to my heart. That is a major reason that this week’s mentary highlights the grave difficulty of their situation. The inspiring news is that the international munity has united to peacefully magnify their outrage of the violent shooting that took place on January 6; the date Coptic Christians celebrate Christmas Eve. I’d like to point out to our Powerblog readers one especially moving video by John...
On Life Support
Revive is a monly associated with the efforts that paramedics and other medical personnel make when someone has stopped breathing. Whether that’s due to slipping beneath the pond ice or being pulled under by a nasty California rip tide, the consequences of inaction will be fatal. So it’s an appropriate word for Hillsdale College to use in titling their townhall last Saturday – “Reviving The Constitution” – that was broadcast online from the Michigan college’s Washington D.C. annex, The Kirby...
Rowan Williams on Wall Street
The Archbishop of Canterbury, Rowan Williams, delivered a talk on theology and economics at New York’s Trinity Church last week. The historic Wall Street church was the site of the Building an Ethical Economy: Theology and the Marketplace conference which promised to “bring together leading theologians and economists to talk about the relationship between economics and Christian belief and action.” Williams had this to say: “Inevitably at some point, you have to talk about what level of wealth generation patible...
Zimbabwe’s Entrepreneurs
Business Weekly, a production of BBC World Service, had an informative feature on Toby Sheta, a Zimbabwean mobile phone trader, who provided insights into the courage and tenacity required of entrepreneurs under Mugabe’s brutal dictatorship (you can download the original Business Daily story in MP3 format here). During the worst times of the Mugabe regime, Sheta would illegally buy and sell fuel coupons, a profitable enterprise because of the chaos of governmental interference in international trade and domestic fuel markets....
Ralph McInerny, Renaissance Man
Ralph McInernyThe Church and the world has lost an immense soul in the passing into eternity yesterday of Dr. Ralph McInerny, long time professor of philosophy at Notre Dame University. He was the modern epitome of the Renaissance Man: a towering intellectual, a Latinist, raconteur sublime, a writer of doggerel, a mystery writer (the Father Dowling series) and the list could go on. Of all this, I suspect the role in which he took most pride was in being a...
‘Freedom comes before equality’
That’s the refreshing and surprisingly accurate headline attributed by The Guardian to Pope Benedict’s address to the Catholic Bishops of England and Wales in Rome for their ad limina visit, which all bishops are required to make every five years. As my colleague Sam Gregg pointed out several years ago, this is yet another example of Benedict’s affinity with Alexis de Tocqueville. Benedict’s address is such a clear reminder of what Catholic bishops need to do to defend truth and...
Review: Thomas Sowell’s Field Guide to Intellectuals
“Intellectuals and Society,” by Thomas Sowell, (2009) Basic Books, New York, 398 pp. Arguments about ideas are the bread and butter of the academic, journalism and think tank worlds. That is as it should be. Honest intellectual debate benefits any society where its practice is allowed. The key element is honesty. Today, someone is always looking to take out the fastest gun, and in the battles over the hearts and minds of the public many weapons are brought to bear....
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved