Understanding Capitalism in the Modern World

The Definition of Capitalism

The term 'capitalism' is often used and abused, and it lacks a stable definition. It's not about pushing one's understanding of the term over others; rather, it's about understanding the concepts and ideals behind it. The purpose of this discussion is not to define capitalism precisely, but to highlight how the economic systems of the industrialized world have shifted away from the ethos of voluntarism in the commercial sector.

A Hypothetical Description of Capitalist Economy

For the sake of argument, let's agree on a description of a capitalist economy as a system of voluntary and contractual exchange of privately owned property titles that allows capital accumulation, avoids top-down planning, and defers to social processes over state planning. Ideally, it's the economic system of a society of consent. However, the reality is far from this ideal. In many ways, our economic systems fail to meet these standards.

How the US System Deviates from the Ideal

Here is a brief list of ways in which the US system does not align with the ideal type of a capitalist marketplace:

1. Tech and Media Platforms

Governments have become major customers of tech and media platforms, leading to surveillance, propaganda, and censorship. Despite these changes, these companies have maintained their reputations as capitalist enterprises, even as they become more entwined with state power.

2. Medical Cartel

The US has a medical cartel that cooperates with regulatory agencies to impose high prices and unhealthy products on the public. This system is neither socialism nor capitalism, but a privately-owned medical cartel working with coercive power at public expense.

3. Education System

The US education system is mostly government-funded, blocks competition, and pushes a political agenda of compliance and indoctrination. Despite the growth of private alternatives and homeschooling, regulations and mandates prevent the full development of a market-based system.

4. Agricultural Subsidies

Agricultural subsidies have created large industries that crush smaller farming and impose unhealthy food on the public. Small farms are being driven out of business due to compliance costs and investigations.

5. Taxation System

The US has a complex and confiscatory taxation system that punishes wealth accumulation and hinders social mobility. Taxes are used as methods of planning and control, leading to a form of commercial and industrial servitude.

6. Fiat Paper Money

Fiat paper money and floating exchange rates give the government unlimited funds, create inflation, and provide foreign central banks with investment capital. This system has disrupted the normal functioning of international trade and led to the financialization of the economy.

7. Court System

The court system invites extortionist litigation that can only be fought with deep pockets. This has become a means by which diversity, equity, and inclusion (DEI) hiring standards have become normalized.

8. Patent System

The patent system grants private industry production cartels and stops competition. This is not property as such but the creation of fake scarcity by regulation.

9. Property Rights

Property rights are weaker than ever and can be overridden or even abolished with the stroke of a pen. This is a devastating consequence of Covid lockdowns.

10. Federal Budget and Agencies

A bloated federal budget supports 420+ agencies that lord it over the whole of commercial society, increasing compliance costs for entrepreneurs and creating uncertainty about the rules of the game.

Conclusion

The next time someone criticizes the US system as an example of the failures of capitalism, consider these factors. It's not about arguing over the meaning of a word, but drawing attention to the hegemonic imposition on commercial freedom by state power, often with the willing cooperation of the dominant players in every industry.

Bottom Line

The current economic system is far from the ideal type of a capitalist marketplace. It's a complex mix of state power and private enterprise, with both rewards and punishments for businesses depending on their relationship with the state. It's a system that may not have a precise name in the 21st century, but it's clear that it's far from the ideal of a free and voluntary market. What are your thoughts on this matter? Do you agree with the points raised in this discussion? Feel free to share this article with your friends and join the conversation. Remember, you can sign up for the Daily Briefing, which is delivered every day at 6pm.