Thursday, 9 October 2014

What exactly is capitalism?

Capitalism is defined as 'free market capitalism', so people who are against it in any form, and see no distinction between the modern corporate states, where business runs the government, otherwise known as fascism or mafia business, and legal regulated capitalism. As they are so misanthropic and cynical they prefer a soviet style planned economy where everyone's equally poor, commodities are not distributed and there is no reward for creation or enterprise. Sadly millions of people around the world agree and instead of allowing legally regulated freedom for all, would prefer not to trust anyone besides the government to run business for them.

It is not a perfect system, as it can lead to monopolies, and also cannot operate where there is no competition, therefore public services like energy supplies and railways cannot be subject to the free market as there is only one product and nothing to offer that is different. But outside the exceptions, which the hard core monopolists, the corporate fascistic proponents, would say otherwise, there is no better way of distributing resources than the free market. You need an equal playing field, so you create fair trade law enforced by the authorities, as cheating is theft and theft is crime, which are not capitalism but fraud. There is no connection between capitalism and exploitation, the criminal and civil law is written to allow the consumers to get the best possible guarantee the producers will supply what they say they will and not be cheated out of their money for dangerous or useless products. Would you want them to do anything else?

So, having created the natural boundaries of the free market, other means such as protectionism, central planning or state capitalism, where the profits are still made but kept within state funds and totally unaccountable to how they are spent, are all comparably unable to share the resources and offer individuals the chance to set up a business doing so, as they do not trust the citizens to do so (even with enormous regulations) but would prefer the state to take over their functions. People who criticise capitalism tend to actually be criticising the crooks within it, and exploiters of loopholes who give it a bad name. The free market itself is even operated now in one of the most repressive extreme left wing countries in the world, China, who have realised it is the key to economic prosperity, while they still offer very little personal freedom. But if a business is honest, then by supplying what people want or need at a market, ie fair price, everyone benefits equally. Consumers of one product are often producers of others, as whatever you are selling you still need to buy everything else from elsewhere, and would want the same service as you would want to provide from those who supply you. Bad businesses will lose customers and not be recommended  and go broke by their own failings, and people who take risks with dubious products are no different from anyone else taking a chance in life. It's their money and decision and up to them if they want to try it. And if it goes wrong it won't all have been wasted as they will have learnt valuable lessons if they want to try it another time.

Basically freedom includes every aspect of life that doesn't hurt others. You can't simply pick and choose elements you like and exclude others, otherwise you'd simply be serving other people in a restaurant what you want on the menu rather than what they want. You can't select which parts of freedom you like and not others, it is a totally inclusive principle, and if you want some to go, effectively you want none of it, as you are scared of other people, scared of life, and want everything to be regulated to make yourself feel safer. But that is a psychological failing, not a realistic way to run a country, let alone the world, and imposing your own psychological problems on others is why so many people are having therapy now.

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