Website owner: James Miller
Does capitalism exploit the poor?
Karl Marx argued that capitalism exploits the poor. He claimed that it involved the wealthy or middle class becoming wealthy by exploiting the poor. Thus the wealthy are evil people preying on the poor. Many people of a socialist mindset carry this belief and make these charges. Thus they justify taking from those who have and giving to those who don’t have.
A free enterprise system in a country consists of many businesses producing many products and services, each one working for a selfish purpose — profit. Each business consisting of a person or association of people in the form of a business or corporation makes some product or produces some service using specialized knowledge, hired labor, physical facilities, and raw materials. If there are other businesses producing the same product or service — providing competition — the profits are not likely to be too large. Competition between competing businesses will keep profits low. If there is no competition — or there is collusion with other companies producing the same product — they may then be guilty of gouging the consumer. For example, if a drug manufacturer has a patent on some drug that is unique in its ability to cure people of a particular disease then it may use its unique position of exclusive ownership to charge an outrageous price for the drug.
Henry Ford didn’t become wealthy by ripping people off. He became wealthy by inventing a system (the assembly line system) whereby he could build an automobile that was so cheap that anyone could afford one. Thus he became rich by selling millions and millions of automobiles. Most entrepreneurs become wealthy by making a better product than anyone else or figuring out how to make a superior product cheaper. They don’t do it by cheating people.
Let me ask this question. How do most people become wealthy? Well, many people become wealthy by inheriting wealth. Others become wealthy by corrupt methods — such as criminal gangs who get money by such illegal methods as prostitution, selling drugs, lending money at exorbitant rates, gambling, blackmail, extortion, protection schemes, intimidation, etc. or corrupt politicians who become inexplicably wealthy by different schemes.
Most people become wealthy through a combination of high income, frugality and good investment. Not by ripping people off.
What about people who bought shares of stock in companies like Microsoft, Apple, or Amazon back when the companies were just getting started? If they bought a lot of shares I would say that they are now wealthy. I would say that most wealthy people become wealthy by purchasing a particular asset or assets, such as real estate, stocks, precious metals, or art and then seeing the value of that asset go way up for one reason or another.
What is the mechanism by which an asset increases in value? It is the market mechanism. It is the mechanism of the auction, the same mechanism that determines the value of a horse at a horse auction. If there are many buyers and few sellers the value of the horse goes up. If there are few buyers and many horses the price of a horse drops. It is the Law of Supply and Demand.
See
A person may have the foresight (or good luck) to buy a stock like Microsoft when the company is just getting started or buy a well located piece of real estate and, with time, see the value of his investment increase dramatically. How did Bill Gates become wealthy? By owning a lot of Microsoft stock. How did Jeff Bezos become wealthy? By owning a lot of Amazon stock. The price of the stocks were bid way up by exuberant investors.
It is not wrong to be wealthy if you became wealthy in an honest way.
12 June 2025
Jesus Christ and His Teachings
Way of enlightenment, wisdom, and understanding
America, a corrupt, depraved, shameless country
On integrity and the lack of it
The test of a person's Christianity is what he is
Ninety five percent of the problems that most people have come from personal foolishness
Liberalism, socialism and the modern welfare state
The desire to harm, a motivation for conduct
On Self-sufficient Country Living, Homesteading
Topically Arranged Proverbs, Precepts, Quotations. Common Sayings. Poor Richard's Almanac.
Theory on the Formation of Character
People are like radio tuners --- they pick out and listen to one wavelength and ignore the rest
Cause of Character Traits --- According to Aristotle
We are what we eat --- living under the discipline of a diet
Avoiding problems and trouble in life
Role of habit in formation of character
Personal attributes of the true Christian
What determines a person's character?
Love of God and love of virtue are closely united
Intellectual disparities among people and the power in good habits
Tools of Satan. Tactics and Tricks used by the Devil.
The Natural Way -- The Unnatural Way
Wisdom, Reason and Virtue are closely related
Knowledge is one thing, wisdom is another
My views on Christianity in America
The most important thing in life is understanding
We are all examples --- for good or for bad
Television --- spiritual poison
The Prime Mover that decides "What We Are"
Where do our outlooks, attitudes and values come from?
Sin is serious business. The punishment for it is real. Hell is real.
Self-imposed discipline and regimentation
Achieving happiness in life --- a matter of the right strategies
Self-control, self-restraint, self-discipline basic to so much in life