by Alexander Wissel, Editor in Chief, Investment U

Knock my favorite football team… make fun of my sports jacket… tease me about my hairline… destroy my finance books… have at it. I’ll even give you a pass for making fun of my mother.

But when it comes to capitalism, “it’s on like Donkey Kong.”

And that means you, Michael Moore. His new film, Capitalism: A Love Story, concludes that capitalism is evil.

Time to draw the line at that one.

Capitalism is no more evil than a lion, alligator, shark, or pack of hyenas. These animals are all necessary parts of the food chain, just as corporations are necessary parts of an efficient society. They aren’t evil… they’re the efficient expression of Mother Nature.

Is the outcome always fair? No. Is it always a perfect system? No. Is it “evil?” Absolutely not. This isn’t about good or evil… it’s about profit and earnings.

Survival of the fittest means just that. The fittest and most able survive. The weaker ones do not. Capitalism systematically allows that to happen. It pulls money away from inefficiency (and sometimes stupidity) and puts it in the hands of the smarter folks.

And while there are situations where an unfit organism survives longer than it should (like a male lion without young competition, or a bloated bureaucratic car company like GM), these are the exceptions to the rule. Eventually, nature puts things back in balance.

Not surprisingly, those who complain about capitalism generally find themselves on the side that isn’t smart. But knowledge isn’t static – you can always grow smarter. It’s why we do what we do: helping as many people as possible stay on the smart winning side of the markets.

Moore states that capitalism is evil and you can’t regulate evil. Ironic then, that he’s made a film about it in an attempt to make money from the very thing he rails against – capitalism!

The fact of the matter is that there is no better system that rewards hard work, intelligence and, most importantly, good ideas. These are the things that have improved the living and working conditions for humanity – and will continue to do so.

View original at: Investment Advice and Investment Research with a Contrarian Point of View

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