College of  Political Knowledge

There are times when I just sit and think…..and suddenly the bright flash of inspiration crawls out my butt and into my head……both locations are seldom in the same place…….contrary to popular belief……after endless debates and politicians rattling on and on about the joys of capitalism…….. I feel I need to set the record straight…….

I was recently having a conversation with a friend….we were talking about federalism and how it had caught on across the world and how cool it was that it had its simple beginnings here in the good old US of A……and then my friend said that it was also cool that capitalism had its beginnings in the US as well….I had to set him right……

This is the silly season and there is a wealth of promises and historical re-writes going on……we hear all about the benefits of capitalism or the free markets or a wealth of other such things……but you realize the politicians have NO idea what they are talking about….and that is most of the time since a majority of them have a very limited knowledge of economics in the first place…….

Let us begin with the birth of capitalism…….believe it or not capitalism was NOT born when the US came into being and NO it was not born with the publishing of Smith’s, The Wealth Of Nations……..sorry to burst your bubble but the birth of capitalism had NOTHING to do with the Constitution or the DoI……or the publishing of a book considered the bible of capitalism….even though they were done in the same year….1776.

If not then….when?

The year is 1648 and after 80 years of fighting Spain finally gives the Netherlands their independence…..this small country had no aristocracy and no discernible class system….but what it did have was a fairly large middle class that had been developed over the years with city dwellers, merchants and small manufacturers and through the massive trade structure like the Dutch East India Company.

The capital Amsterdam was a great city in Europe up to the Industrial Revolution…..if was the first stock exchange and the first insurance company…..all these developments labeled the Netherlands as the first truly capitalist country.

The economic system of the day was mercantilism……..Theory of the responsibility of the state to protect and promote national wealth by encouraging exports and limiting imports.  Its central figure was the authoritarian monarch because only the monarch embodied the state’s general interests and only he could guide economic affairs.

So you see, regardless what you are told….capitalism did NOT originate with the founding of the United States….the concept was in play long before the birth of the US…..