Criticizing capitalism is a popular cottage industry, but the critics never tell us what system would be better and why. A Jan. 8 letter from Barbara Dee blaming capitalism, “our decidedly evil and outdated market-based system of economics,” for societal ills from homelessness to inequality is a good example.

The problem with Ms. Dee’s description is that the evidence is exactly the contrary. Capitalism in combination with democracy has been responsible for the greatest increase in prosperity and for lifting more people out of poverty than any other economic system in history.

The most common complaint about capitalism is that it results in income inequality, and that’s true because differences in innate capabilities, ambitions and the willingness to work hard will always produce different outcomes. We offset some of the income differences with massive redistribution programs, and once taxes and income transfers are considered, measures of inequality shrink significantly.

“Rampant capitalism?” Hardly. Our economic system struggles under an increasingly thick blanket of regulation, which slows growth, makes it harder for low-income workers to move up the ladder, and is responsible for much of the homelessness that Ms. Dee writes about.

It’s possible to live in a “Star Trek” universe “where no one has money because everyone gets what they need,” only if you don’t have to explain how needs would be met. Fantasy is always more appealing than reality.

Martin Jones
Freeport

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