Judy Shelton's Capitalist Manifesto

Just a brief note to recommend an excellent Wall Street Journal editorial by Judy Shelton titled “A Capitalist Manifesto.” In it she quotes the French president Nicolas Sarkozy.

The financial crisis is not a crisis of capitalism. It is the crisis of a system that has distanced itself from the most fundamental values of capitalism, which has betrayed the spirit of capitalism.

It is a blot upon our country that both candidates for president could use this instruction on capitalism from a Frenchman.

Shelton presents a cogent argument that capitalism is not just a practical economic system, but is also a moral economic system. Morality requires honestly, hard work, individual responsibility, productivity. Where are we most likely to find these qualities of character? Entrepreneurs or politicians?

Politicians are crying "market failure" while ignoring how the actions of Congress and the Fed have undercut the integrity of our very money. Shelton reminds us that "Money represents a moral contract between government and ordinary citizens." When that contract is broken through manipulation of the money supply, it is not the market which has failed us, but government..