Why Capitalism Works and Government Doesn't: Or, How Government Is Recycling the American Workforce to Pay Its Bills and How the Rich Profit from Big Government

EW Dedelow is a CPA and a successful businessman with an incredibly varied background.  In his youth he experienced work in the industrialized north with union jobs in steel mills, processing plants, and on construction sites. In his nearly forty years as a professional in the often vigorous up and down economy of Florida he worked as a consultant for businesses, created accounting systems, handled large and small financial matters and advised on and applied tax laws.  He was CEO of his own successful business and an experienced real estate and stock investor.  His background in economics began with self study in his youth. That knowledge was furthered by a college education and his never-ending business readings.  Over a period of fifteen years he wrote commentary on his opinions into personal writings which were eventually assembled into “Why Capitalism Works and Government Doesn't” and his already drafted “Economics of Labor”.   He doesn’t just believe in capitalist principles, he proves that capitalism is backed by natural irrefutable laws.  His synopsis will provide surprises for everyone as these laws when applied give results that will be revelations for both the right and the left.  

Excerpt

Chapter 2, page 20

Socialism is the last adversary of free humankind. But it is a far different opponent than Communism or Fascism. …………………………………………………. Socialism is a cancer that grows from within. It is devious and devastates its opponents by blaming the economic host for the ill it creates. When programs fail, its bureaucrats decry the lack of funds or the failure of the economic system. Socialists no doubt believe what they say; their idealism is sincere. They also believe that the simple platitudes they use protect them from contaminated logic. Their idealism protects them only from reason, and as true believers, they will never accept being wrong. It would be harder still for Socialists to understand that their effort encumbers the many that receive the benefits they advocate. But Socialist guidance must be subdued before those who receive their larder from socialism too far outnumber those who fill the storehouse. It is not the rich we need fear; we need protection from those whom we nurture.

AUTHOR’S NOTE: THE 2008 ECONOMIC CRISIS

Page v

This book took years of reflection and even more years to write and does not mention the 2008 economic crisis, although it does foretell its possibility. Therefore, I felt that I should discuss that crisis.

To begin, I do not support current economic theories and am not a proponent of any political party.  The book makes an emphatic statement that definitive economic solutions exist that are based on the economics of labor and not demand or supply side economics. Additionally, the old writers, Smith-Marx-Engels-Mandeville-Schumpeter-Keynes, were simply observers in an embryonic revolution. These brilliant men did not and possibly could not have known where capitalism would take society.  They made meaningful observations, and they were thinkers, unlike modern economists, who, it seems, have limited themselves to a debate over old ideas.

Now to explain: In the book I suggest that a modern economy should be more stable, and indeed, we have had nearly twenty-five years of mostly uphill growth in the number employed and our stock market. The reckoning for stable economic growth was made based on the observation that the division of labor had been evolving in stages that I call Rural, Transitional, and Complex. Basically, labor has become so divided into professions, occupations, and work responsibilities that any individual catastrophic event would typically have only local consequences.

Also, we have come to a point where private-sector businesses have the flexibility to adapt to market forces that are indicative of a Complex economy and needed to fulfill increasing government demands. Thus, given normal circumstances, our Complex economy would not suffer greatly from any event. The only ostensible cracks in this theory would be the recession related to the dot-com revolution and the 2008 debacle. The dot-coms did consume enormous amounts of capital and manpower, and that recession resolved itself quickly and with no meaningful disturbance in employment. Its occurrence is not an exception to the rule. There is one fly in the ointment, which brings us to the 2008 crisis.