Whenever someone introduces the word “capitalism” into a conversation, it immediately polarizes people. Some start denouncing “capitalism” as if it were the greatest threat the humanity has ever faced. Others respond by passionately defending “capitalism” as if a dear friend or family member has been falsely accused. Voices raise, tension escalates and very soon the slightest chance for a reasonable discussion disappears. Not infrequently, friendships end. Perhaps heated argument and hurt feelings can be avoided if someone calmly says: “Wait a moment. Before anyone says anything for or against “capitalism”, let us all agree on what exactly do we mean by the word “capitalism””. What is “capitalism”? I see two distinct meanings of the word that all too frequently get mixed up. Meaning one: capitalism is simply free market, i.e., such as system under which people can buy, sell, trade, hire others, or do work for hire based on voluntary mutual agreements, without state bureaucrats telling then “no, you cannot do this, it’s against the law!” Meaning two: “capitalism” is the name for the social, political and economic system as it currently exists in the United States. When people denounce capitalism, it is usually capitalism in the second meaning of the term they denounce. When they defend it, it’s usually the first meaning of “capitalism” they defend. But what is typically overlooked is the fact that we don’t have free market in the United States. And the more I study history, the more I realize that we never had. Once people in both pro-capitalism and anti-capitalism camps realize that free market does not equal capitalism, they can find a common ground. I think it is perfectly possible, in fact, logically consistent, to embrace capitalism in the first meaning of the word, and to denounce it in the second meaning. Sometimes I hear an objection: “OK, I agree that “capitalism” that we now have is not a truly free market. I understand that government meddles in people’s voluntary transactions all the time, requiring licensing for just about everything, fining and jailing people for peaceful, voluntary transactions. However, I will still defend capitalism, as it exists in this country, because, for all its faults, it’s an incomparably a better system than communism of the former Soviet Union, Cuba or China”. Sure thing, if one is forced to choose between Soviet communism and American capitalism, choosing the latter is a no-brainer. But is this the limit of what humans can aspire to? Just to be content with a system that is not as awful is that of the old Soviet Union? Just this and nothing better? I am sure we can do better than this. Achieving a true free market, rather than keeping the status quo, should be our goal.
Posted on: Wed, 18 Sep 2013 01:00:01 +0000
Trending Topics
Recently Viewed Topics
© 2015