The Spectator’s Notes | 30 July 2011

Why do those of us who support capitalism use that word? It was designed by our enemies. Capital, of course, is a vital component of an economy, and capitalism could be defined as the separation of the provision of capital from its management — a good idea in principle since it makes it possible to create and diffuse wealth much more widely. But it is a bad word because most people lack notable capital of their own, and therefore believe that the -ism advanced in its name can do nothing for them. As I argued in last Saturday’s Daily Telegraph, the actions of governments, bankers and central bankers have made this scepticism seem vindicated. The link between the generation of wealth and general prosperity was what enabled us to beat Soviet communism. For more than ten years now, that link has been fraying. When it breaks, so will our freedoms, our comforts and even our basic decencies.