Well, I hope you’re happy…
Congratulations, people. Through overuse, and misuse, “Capitalism” no longer has any meaning. It has become another garbage word, and will remain such unless we can demonstrate some discipline, and perform a relentless course correction. Otherwise, it will stay in the garbage rotting, along with “racism,” “fascism,” and “Nazi.” Here is my feeble attempt to reclaim the language.
Origins
Louis Blanc, a French socialist appears to have come up with the term prior to the revolution of 1848, and published during France’s 2nd Republic.
What I call ‘capitalism’ that is to say the appropriation of capital by some to the exclusion of others. — Organisation du Travail (Louis Blanc)
Reputed to be confrontational, Blanc is refreshingly humble here, at least by Leftist standards. He is clear, if completely wrong. He is candid in that “his” definition may not be “the” definition.
Over a decade later, Karl Marx would twist and mutilate the term beyond reason. Thus began the catastrophic march through the Western academies, salons, and National Assemblies. A march which never seems to end and shows no sign of slowing down.
It’s Never About Capitalism Vs. Communism
The struggle is and has always been between Statism and Liberty. That’s the reality. The fiction is the “battle” between Capitalism and Communism. This is intellectually lazy, even stupid, and here’s why: Capitalism and Communism are not diametrically opposed and they never were. Capitalism is not the opposite of Communism, any more than Satan is the opposite of God.
Capitalism can be considered an economic system. It’s not. It’s actually an economic praxeology – a theory of human behavior and purpose. When we hear the term, we think of private ownership, and free trade. What we are actually referring to are ordered and regulated markets. Pure “free trade” does not exist outside of Facebook Marketplace, and communities that function outside of the law. All legal trade is governed at the federal, state, and local level.
The definition, the true definition of Capitalism: The conversion of labor into (wait for it) Capital. [Mic drop]. Yes, I used the word in the definition. You can substitute “Principal” for “Capital,” if you want.
Capitalism as praxeology is easy to explain. Because every economy – every economy – local, state, national, and global, incorporates capitalism. Every economy must incorporate Capitalism, otherwise they grind to a halt.
“But Phil, you towering edifice of intellectual magnificence,” I hear you say, “Is that simple?” Yes. Once an individual possesses Capital, they will convert it into a good, a service, or an investment, all of which represents (wait for it) someone else’s labor. Good Heavens, it’s like a perpetuating cycle… or something.
So, why do I assert that Capitalism is behavior instead of an economic system? Because it exists within all economic systems. Regulated markets, unregulated markets, Communism, Socialism, and mixed economies all function through the never-ending sequence of Labor converted to Capital and back again.
Bartering… Its happens sometimes.
Exceptions? Sure. A neighbor bakes artisan bread and exchanges it for fresh garden tomatoes. A mattress company will send their product to a blogger who in turn digitally records and posts the unwrapping process.
Of course, exceptions do not supplant the rules. Just as the sun accounts for 99.8% of all matter in our solar system, so exchanges of Capital account for the overwhelming number of economic transactions in our world.
That all being said. If we’re conversing and you use the term “Capitalism,” I’ll know you really meant “Regulated Free Markets.” I won’t obnoxiously correct you. I think I got it out of my system here.
Selah.
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