A colleague of mine pointed me to this anti-Romney ad, adding that he thought it was “effective” because of its focus on one compelling story. Have a watch:
I did not find it effective. It does focus on one story, and it does make it sound like this person was made worse off by Romney. But capitalism is about creative destruction—and you cannot have creation without destruction. The computer I am writing on now (and that my colleague wrote on to send me that link), for example, came into being in part by destroying the manual typewriter manufacturing sector. How many plaintive stories were there about displaced manual typewriter workers? How many people lost jobs when their companies went out of business because of the success of the phone on which I first viewed the ad? Similar stories could be told about countless other cases.
That is not to say that the person (the people) whose story is told in this ad did not suffer displacement, disappointment, anxiety, or frustration. But they are much, much better off overall for living in a place where capitalism’s creative destruction is allowed to continue. What car does he drive? What medical care does he receive? What medicines does he take? How is his home heated and cooled? How fast is his home internet connection, and how many channels does he have on his high-definition television? Do we suppose he, or we, would be able to enjoy such things if we did not allow capitalism’s creative destruction?
As Bastiat pointed out in the nineteenth century (and Adam Smith pointed out in the eighteenth century), production of wealth is not only about the “seen,” but also about the “unseen.” So we see that this man and his co-workers lose their jobs. But what is done with the wealth that is thereby saved, and put to other uses? If Romney and Bain Capital made a profit in this transaction, what did they do with that money? Put it in a coffee can and bury it in the backyard? Carry it around in great big fanny packs? No, they reinvested it elsewhere, in places where it was put to better use, where it was more highly valued.
We could create a lot of jobs by outlawing farm machinery. Just think of how many people would have to be employed by farms, doing with their hands what far fewer people can do today with machines. If you think that would be a good idea, then you are not taking a full view of the situation. You are focusing only on the seen, the jobs people will have working on the farms; you are not considering the unseen, all the things those people would have been doing if they did not now have to work with their hands—all the productive labor in which they would otherwise have engaged, all the wealthy they would otherwise have created.
We should not discount the pain and suffering of people who lose their jobs. It is real, and those of us who can help them, should. But condemning the system that has given rise to the greatest increase in prosperity in human history because it involves displacements and disappointments would be like condemning modern medicine because many treatments hurt.