The Capitalist Manifesto

The Capitalist Manifesto
By Andrew Bernstein

I’ve had dinner with this author and listened to his lectures with my gratitude of these experiences owed to my son TJ. Andrew Bernstein is a Philosophy Professor at New York University. He is an author of The Heart of a Pagan, review(s) previously published. When I listened to his passionate “Average Joe” oratory on his book in coming, in thick Brooklyn accent, reading it was compulsory. Through TJ I was able to read a book, not purchased from a bookstore but sent by the author. So with a sense of privilege I was obligated to give it a read. The Capitalist Manifesto is a book to pay tribute to its cover and its title. Next time you are at the bookstore at least have a look at the cover. Its cover is a tribute to us Americans and a compelling reason to read what’s between the covers. It is a historical look with a philosophic perspective on capitalism. To coin a phrase that captures this book and found in the book I’d mint the following:

“Value as that which one acts to gain and/or keep.
The fundamental benchmark for value is life.”

In current times where it is cliché to associate a capitalist with one who is selfish, Bernstein dispels this with a brief walk through the birth and rise of capitalism. He then proceeds to underscore this history with a philosophy that sired capitalism and raised it through infancy and now guides it through its adult life. So if you are one apt to the somewhat popular yet controversial cliché you may find difficulty opening the book. But if you have the courage to get past the “30-second message mentality” our television society has succumbed us to, you will find very early on that Capitalism is the proud parent of freedom, applied science, and the powerful and productive minds of the middle class. We are the benefactors as we experience still today the warp speed advancement of our human living condition. This book may be the enlightenment to assure today’s man does not throw his baby (now an adult) out with the bath water.

Contrary to the also-popular notion that capitalism sprang from Smith’s “The Wealth of Nations”, Bernstein contends that capitalism’s birth resulted from the union of John Locke’s philosophy and Isaac Newton’s passion for science. In America we are blessed with the good fortune that our founding fathers based our Constitution in this spirit. Bernstein provides the supporting history. However Bernstein also makes clear that we must also be grateful to Europe as she too contributed to the exponential growth of knowledge with her contributions of the Encyclopedia and Dictionary. These breakthroughs allowed the common man to actually exercise his mind and come to learn of things previously entitled only to aristocracy. Knowledge of natural science and cognitive thinking in that area led to the compelling argument for a separation of church and state. (Which is clearly not the same argument wasting tons of our taxpayers money, (involuntary charity) in today’s courts.) Bernstein is careful to note that the separation allowed for the knowledge entitlement paradigm to dissolve. He does not come out against God so the absence of this suggests that Capitalism allowed science and faith to co-exist as evidenced here in America. Bernstein’s idea holds that the outcome of Locke and Newton’s works produced this principle statement: “America’s founding principle was one of individual rights…The rest – everything she became, everything ‘noble and just’, and heroic…was the outcome of the fidelity to that one principle.” The philosophy of Capitalism is the seed.

Bernstein’s historical review of pre capitalism Western World history is put to the reader in an appropriate dose to allow the average reader to digest the meaning and draw a contrast. This approach is consistent with the thesis that capitalism unlocked the average man from the shackles of aristocracy. The point is driven home with a list of men such as Isaac Newton, John Locke, Denis Diderots, Thomas Jefferson, Benjamin Franklin, James Watts, Thomas Edison, Alexander Graham Bell, Andrew Carnegie that were not born in aristocracy; or in today’s vernaculars were self made men. This list is an actual chronological list illustrating the powerful minds fortified by WILL to perpetuate this transition to liberty. If you are a capitalist, you are in good company.

Bernstein anticipates his critics and dismisses them in a prelude to a convincing historical argument for Capitalism. He counteracts the anticipated critique not with disparaging comments on the critics but only a convincing collection of historical facts that are well documented in the bibliography. Ironically I contrast this with today’s ubiquitous argument made by the average man. I recall an 11th grade student once asking me what’s the difference between Democrats and Republicans. I told him that Republicans with their flaws foster the entrepreneurial spirit of man in business, while Democrats, completely flawed with their theory, consider the average man incapable of such and prefer to do their thinking for them. (Aristocracy) This young lad responded with “aren’t the Democrats right we are all pretty stupid.” Who taught him this?!!! As the author points out in the book and my discussion with him, execution on the spirit of Capitalism has its flaws as today’s educational institutions make Science subjects compulsory, while Philosophies studies are disappearing at an alarming rate. The author’s main argument in book is that it is the philosophy of Capitalism that frees a person’s mind, despite all efforts to thwart that idea. Imagine a burgeoning philosophy that is formally taught in too few places.

The brilliant blending of a philosophy and history leaves the reader feeling good about the results of capitalism. From a philosophical position that human beings have rational faculties or minds of their own – and that destitution does not invalidate their capacities to think for themselves, Bernstein concludes that capitalism and the Industrial Revolution were integral components of the Enlightenments commitment to applied rationality as a means of improving practical living conditions of mans life on earth. Historically Bernstein writes that it is because of capitalism and then our founding fathers courage to fight for free will, that the world’s leadership in applied science shifted from the Mother of Enlightenment (England) to its child (America), then that child in a mature state (post Civil War) became the most progressive nation in history.

Bernstein coins a term of a practice I observe regularly; “Context dropping”. He addresses the critics of Capitalism in the right dose to dispel their arguments but not to distract the positive message found from the fruits of capitalism. He remains academic as opposed to the “op-ed” journalist who occasionally writes a book aimed at his critics rather than a subject. He address a few anti capitalist arguments one being child labor making it clear that child labor was far worse through the apprenticeship programs that preceded industrialization. He drew a point that child labor, in a larger context, was a function of destitution of the time. He argues that this destitution was overcome by the efficiencies of industrialization brought on by enlightened capitalistic thinking minds which eventually led to children entering the work force voluntarily in their late teens as opposed to being forced or sold into labor a the age or four. He brings contrasting statistics to reader to demonstrate measured argument as opposed to intellectual rhetoric. Although he brings historic statistics relative to child labor, I found worth mentioning a contextual statistic of current times relative to Nike, also mentioned in the book. The sweatshop workers in the Nike story were being paid $1.60/day or $416/yr. Appalling by our standards right. But $416 is significant mark above the non-capitalistic domestic and neighboring countries of that area making $250/year. And the real deal is those people came to work voluntarily.

It is my opinion but knowing Bernstein he’d likely agree: It was an elite Hollywood ( or Chicago…Oprah) society that launched a campaign to drive these folks back to destitute. It seems Hollywood is blind to larger contexts as they bathe in the sunshine of their anti-capitalistic millions. I personally witnessed an oppressed mindset when I was working in Panama where unmotivated and cynical people believe their money will be absconded from them by their government. As a result, I can appreciate the weight of capitalism as opposed to weight of the elite doctrine of non capitalist thinking rulers as they are weighed on the scale of freedom. In a larger context a Hollywood, if with insight, could be calling for more capitalism in those countries.

With regard to Bernstein’s view on economics of laissez-faire-v- Statism controls, historically at a macro level he is generally correct. I especially liked the part where he indicts Roosevelt as nothing more than a copycat of Hoover policy and the sole perpetuator of our Great Depression. In fact, after eight years of Roosevelt we were worse off than under Hoover! However some of his issues and assertions would likely not stand up to scrutiny. One for example is his claim that the FED is the sole proprietor to the cause of inflation. He bases this on a simple theory that the FED’s ability to produce more money is the only causal factor to the “too much money, chasing too few goods” equation. In fact Bernstein only addresses the too much money variable of the equation. Here is where the author’s own theory where a free economy is morally driven by mans desire to live could be put to the test when examining to the current medical cost coverage. Our current economy is not generally experiencing inflation, caused by the FED or any other state government. However locally in terms of market verticals, in the medical industry health care costs are through the roof. How to put a price on a mans will to simply live…longer. Hence, this economic condition is not caused by the FED per se. But the situation demonstrates the need for our rapid advancement in applied science, to find an anchor in a complementary moral philosophy.

Ironically the polar side of this moral argument has taken center stage recently. At the risk of context dropping but to drill down into a real life issue, I would challenge Bernstein, as many of his critics have to take a philosopher’s theory and apply it to this real world situation. It is generally Bernstein’s approach so I deem it fair to throw out the challenge. It is these litmus tests of practicality where I find most philosophers’ theories break down and me searching for something that works. Bernstein advocates a practical approach to history, economics (the philosophic science of money), and most of all an appreciation for the benefits of applied science as its heroes apply it to improving the human living condition. I would certainly look forward to his next book where he addresses such conundrums as our medical costs problem. We could start with a moral compass and then chart a course.

A call for a simple removal of the government would be an oversimplified copout to the problem. There are legitimate conditions that require care. But consider this: I was once eating breakfast in a restaurant with an older man who began his breakfast with about ten pills at some cost to the overall system. I said, “ a man with your condition (overweight, high blood pressure, triple bypass) shouldn’t be eating that” Eggs on corn beef hash with a side of bacon and potatoes. He said “ because I take these pills, I can eat this food.” A close examination into mans desire to live, at what consequence and under what condition is worth taking a good look at. Could Bernstein take his philosophy and write a book compelling us to take a different look at living healthy lives as opposed to demanding the medical profession make us better and live longer?

Andrew, this one’s for you.