TRUE DOLLAR JOURNAL

Capitalism means living by using products that yield goods during production to produce a surplus of another product and hoping to sell that surplus for a price such that the sum of sales exceeds the cost to gain those sales. Said another way, capitalism means living by using capital in pursuit of ongoing exchange of buying power.

Capitalists pursue profits through production surplus derived from efficiency, producing what others want.

All of trade, or commerce or authentic economics is governed by one true, great, infrangible law, the Law of Prices. The Law of Prices holds the winning bidders of purchase and sale in the face of what is on offer set the price. In every market, always, the winning bidders of demand set the price. The Law of Prices holds regardless of whether political intervention of subsidy or buying power transference exists or not.

All producers are held in check by the great Axiom of Profit. The sum of sales must at least equal the cost of production, otherwise a producer goes to ruin. Those sum of sales derive from the prices set by winning bidders.

If politicians subsidize producers, politicians let inefficient producers operate, producers who would otherwise go to ruin at the prices set by winning bidders.

If politicians give economic quantities of purchasing to buyers, prices get buttressed higher than otherwise would be. That either yields unearned profits for producers or pushes prices high enough for inefficient producers to break even.

Crony Politics determine whether or not unearned profits can get gained or whether a producer can stay in production, inefficiently producing what not enough winning bidders would be willing to pay to acquire absent intervention.

There is no such thing as Crony Capitalism. It is always Crony Politics, Crony Governance and Crony Regulatory Capture rather than “crony capitalism”, which not only does not exist but never could exist.