overflown asked:

Views on capitalism?

Capitalism is one of those confusing words that different people use to mean completely different things. Because of this, many debates about “capitalism” are not actual arguments about ideas, but misunderstanding and miscommunication. Thus, whenever someone talks to me about “capitalism,” I usually ask them to define their terms.

There seem to be ~four different mainstream definitions of capitalism:

1. Capitalism: An economic system based on market competition and private ownership (as opposed to collective, state, or public ownership) of the means of production. This definition is the one usually used to contrast capitalism with socialism, communism, syndicalism, and left-anarchism.
2. Capitalism (Free Market Capitalism): A political economy based on individual rights and voluntary individual interaction. This definition is the one used to contrast capitalism with statism.
3. Capitalism (Cultural Capitalism): A socioeconomic norm that encourages/results in selfishness, greed, materialism, social alienation, and conformism… especially in people’s personal lives. This definition is usually used to contrast capitalism with community or cooperation.
4. Capitalism (State Capitalism): The current, worldwide “mixed economy” approach where the state subsidizes corporations, banks, big hospitals, big pharma, RIAA, no-bid military contracts, central banks, government unions, AMA, etc.

1. I am in favor of capitalism #1 with regards to the economy at large, but not necessarily in anyone’s personal life. Capitalism #1 is the naturally emerging economy and produces numerous real benefits like longer life expectancy, modern technology, innovation, less poverty, and so on.(I should note that I have no problem with voluntary syndics, communes, etc. but I wouldn’t want to live in one and I  don’t think they turn out well. However, I am also very much in favor of mutual aid societies, fraternal organizations, voluntary charities, and other things that do not fit into definition #1.)

2. I am very much in favor of capitalism #2. It’s libertarianism. It’s beautiful and what makes the world work.

3. I am very much opposed to capitalism #3. I believe that in our personal lives (as opposed to in society at large or in economic transactions), our interactions should not usually be based on prices, profits, market competition, etc. Social alienation is real and sad, and I certainly am not in favor of prescriptive greed or selfishness or conformism.

4. I believe we can do better than capitalism #4 - we can eliminate state subsidies for corporations (anti-statism, ideally eliminate the state altogether). This will address many of the problems of capitalism #3, be the fulfillment of the ideal of capitalism #2, and increase all the real benefits of capitalism #1.