Who you callin’ a capitalist, mister?
Bernie Sanders tries to embarrass Elizabeth Warren. By calling her “a capitalist through her bones.” (Something she called herself.) He also declares he is not a capitalist.
Nice try Bernie, but you are.
Do I label you a capitalist because you own three homes? Or because your net worth is at least $2 million? No. Neither of those automatically make you a capitalist.
What makes anyone a capitalist is the use of capital, basically money, for gain. And you, Bernie, use money for gain. You have planted money in various investment funds. And retirement funds. These are invested in stocks and bonds. You have put your capital into these funds hoping to gain dividends, interest and growth in value.
Nothing to be embarrassed about, Bernie. A good many of your supporters are capitalists. Many don’t or won’t own up to this horrible label. Mostly out of ignorance of what capitalism is. And is not.
You are a capitalist if:
You buy property in hopes of selling it for profit. Or you own rental property.
Or you own stocks and bonds. Even if you own innocent U.S. Treasury Bonds. Or you own only CDs. Or you have a savings account that earns interest.
If you buy and sell stuff on eBay, you are a capitalist. If you buy a boat or a classic car, hoping to sell it for a profit, you are a capitalist.
If you own a business you are a capitalist. Many business owners don’t regard themselves as capitalists. But when they invested their money into that business they became so.
If you lend money at any interest rate to your kids, you are a capitalist. Likewise if you hold a mortgage on property you have sold.
Farmers are capitalists. They invest in animals, seed, fertilizer, equipment, barns and land. In hopes they will see a return on what they invest.
Do you own a life insurance policy? How about an annuity? Capitalist! You have invested your capital. In something from which you expect to receive more than you invested. You or your heirs, that is. In order to pay you off, insurance companies invest your money in stocks and bonds.
At a stretch, some students are capitalists. For instance, a student who invests capital (borrowed or not) in a masters or doctorate degree. Fully intending to get a return on that investment. From higher income.
Hey, the kids who spend five bucks on lemonade mix and open a stand at the curb. They are capitalists.
Who is NOT necessarily a capitalist?
A wealthy person who stuffs his money in a mattress. That person is a hoarder, not a capitalist. The only return he gets from his money is emotional satisfaction. Does not count.
A person who sinks his money in houses or land. From which he expects no gain or income. Such an investment does not make that person a capitalist.
A farmer who buys animals because he or she likes them. Such as many horse owners. Buying horses does not make folks capitalists. Those who buy horses to breed and make money from, they are capitalists. The same applies to dog breeders.
A person who makes a million bucks a year might not be a capitalist. I have known many big earners who own no stocks or bonds. They own no income-producing assets. They spend all they earn.
A CEO of a Fortune 500 company might not be a capitalist. That would be a rare person, for sure. My point is simple. People who work at a high levels for capitalist companies do not automatically become capitalists. It is what they do with their own capital that makes them so.
People fling terms like capitalist and socialist here and there. Celebs, politicians and journalists love to. But many of us do not appreciate how common capitalism is in our lives. Nor do many of us understand what socialism is. Or is not.
The capitalist activities above are not petty. Heavily socialist countries ban many of them. Or restrict them by taxing them through the roof.
Maybe in a future column we can look at mis-understandings of socialism. That might be a capital idea.
Meanwhile, you may be among those who hate capitalism and greedy capitalists. If so, you have seen the enemy. And there is a good chance he or she is you. Many of those who despise and deride capitalists see one every morning in their bathroom mirrors.
From Tom…as in Morgan.
Find Tom at tomasinmorgan.com. You can write to Tom at tomasinmorgan@yahoo.com.