Bernie Madoff is in jail for life for using other people’s money under false pretenses in a Ponzi scheme that fooled some of America’s most sophisticated investors. This is an example of fraud, not capitalism.

Raj Rajaratnam is in jail for 11 years for insider trading of securities of Galleon Group, the hedge fund he founded. This is an example of violating a law passed by Congress restricting capitalism. If Raj had been a member of Congress, which exempted itself from that insider trading law, he would not be in jail today.

Steve Jobs will be remembered forever as the American who envisioned products that didn’t exist and the world later found indispensable. His was American capitalism in the Edison, Bell, and Ford tradition. American innovative capitalism has changed the world. Jobs made Apple Inc., which he famously started at home, into a worldwide giant with a net worth greater than the country of Greece.

Mitt Romney and the investors in his private equity firm made a boatload of money buying risky failing companies and turning them around to profitability. Many companies failed anyway. Others became household names. Many employees lost jobs they were going to lose anyway; many more Americans found jobs in Staples, Domino’s Pizza, Brookstone, Sports Authority, etc.

Continue reading on