In Defense of
Capitalism
by Erik Fortman, June 19, 2005
(Posted here by Wes Penre, June 20, 2005)
American
High School students emerge into the world of adulthood as political
infants. Late night talk show hosts take particular pleasure in
presenting us with college students who don’t know who the Vice
President is. Only two ideologies exist in the minds of a large
majority of people in their 20s: Democrat or Republican. Of course,
neither of these are political ideologies. Democrats follow some shade
of liberalism. Republicans fall into the conservative spectrum. My own
journey led me to believe I was a liberal, then a conservative, and in
1999 it became evident my ideology was libertarianism.
Upon further
study and reflection, it became obvious that the root of all tragedy in
the human drama was none other than the government itself. The sole
purpose of government is to enforce policy. In tyranny, it may be the
policy one or a few men. U.S. Democracy allows the enforcement of laws
that were enacted by a majority of men who were elected as
representatives by the most votes in any given race – in other words,
less than a majority can dictate policy. Direct democracy allows even
more, 51% of the people, to decide the fate of society. The only answer
for individual freedom, in my opinion, became Anarchy.
Ah, how naïve
I was (and probably still am). I wrote my well-researched essays. Many
liked them, but some didn’t. The most obvious group who disliked my
writings on Anarchy was the Anarchists! “Whatever,” I thought. I was
informed that just because a society has no government does not mean it
is “anarchist”. The primary sticking point was that I believe that
there MUST be property rights, which is the foundation of civilized,
free society.
In my defense,
I continued to study the subject. I even wrote a paper objectively
discussing a world without government. The theory doesn’t fit. It
doesn’t take into account human nature and Natural Law. It’s not taking
away property that will make man peaceful. It’s his absolute claim to
it that would stop fighting. I will die before I give up my own meager
property. So would many, and thus Anarchists would have to kill many
people who simply did not want to give up their half acre plot and
house. At that point, they would no longer be Anarchists, using
domination to dictate society.
What I did
know was that I abhor the American system. If government is the weapon
of evil (money is the root), what do you consider my opinion of an
already gargantuan Federal Government giving away my individual
sovereignty to the United Nations? Every country in the world is now a
member of the U.N.: except the Vatican, a permanent observer, and
Taiwan, a country that has begged admittance for decades, to no avail.
(I recently called the Taiwan Embassy in Texas, and asked them if I
could join their military – in case China attacks them. They laughed.)
In the U.S.,
we kill people in other countries, usually people of color, so that the
Corporations can rape them of their resources and use their fields to
grow illegal drugs. This is all on public record. The New England
Establishment (the Governors for the European superpowers) first
inhumanely used Irish, German, and other poor white, Europeans in the
Northeast for cheap labor. After The War for Southern Independence,
blacks were imported and took white jobs. As well, manufacturing was
moved to the South. As the New World Order waxed after WWII, the
Central and South Americans have been abused for labor, resulting in a
massive loss of U.S. jobs for blacks, whites, browns, yellows, and
everyone else. The goal – as detailed by the Bilderbergs, CFR,
Trilateral Commission, Skull & Bones, and other elite groups – is to
make the entire Earth one seamless, global, 2nd world
plantation.
So, if the
U.S. system wreaks this havoc domestically and abroad, Capitalism must
suck, right?
Wrong. Any
intelligent American Communist will tell you that the Soviet and Chinese
models of Communism are bastardized. What most professed Capitalists
fail to acknowledge is that the U.S. model of Capitalism has become a
malevolent shadow of its former intent. Properly speaking, The United
States of America operates under the system of Corporatism. In the
pursuit of total control, the Corporations fund and maintain the media
and the politicians. The politicians then use, to lesser and greater
degrees, the planks of Karl Marx’s “Communist Manifesto” to redistribute
property and wealth from the people to the Corporations, with plenty of
skimming off the top to go around. The government has a de facto right
to take your property. We have centralized schooling. We have a
central bank, which is a private/public company. We use the techniques
of Communism, but we should replace the “State” with the “Corporation(s).”
The U.S.
operates through Corporate Communism, which is often called Fascism.
This follows the models of Hitler and Mussolini (Thomas J. DiLorenzo,
“Economic Fascism”, lewrockwell.com). Capitalism in purity would run on
a “market economy”. Soviet Russia’s system was a complete “command
economy.” America uses both, and thus is a “mixed economy.”
The Rothschild Mansion - Capital of
Corporate Communism
Becoming an
adult is becoming aware of the myriad colors in the political spectrum.
My next book is going to be partially about Anarchy. It is true:
Anarchy historically rallies around the battle cry of abolishing private
property. Anarchists had a right to grumble at me, calling myself an
Anarchist. Upon further reading, I understand that I am what is dubbed
an “Anarcho-Capitalist.” This designates that I believe that Capitalism
is the proper economic system we should follow. However, I think that
the abolition of government, and the collective enforcement of
non-domination, is necessary for the freedom of humankind.
I should
relate how I realized that I am an Anarcho-Capitalist, not an
Anarchist. Wikipedia.com has become one of the most important online
encyclopedias. It was there that the difference between the two was
pointed out. Yes, I believe in private property, and a truly free
market. But, the U.S. model has nothing to do with that. What the heck
IS Capitalism? Wikipedia answers.
The definition
of Capitalism is not set in stone, but the common theme is that property
and the means of production are privately owned, in lieu of centralized
state control or command economy. Socialism itself contrasts, but has
two separate meanings. In Socialism either the State or
the collective public owns property and production. These are very,
very different definitions. I could get on board a fair public
ownership, but without government. However, public ownership goes
against human nature, and would lead to conflict, which would lead to
the creation of government. Socialism through government leads to
corruption and centralization. Socialism through the people has
historically led to failure. That is why Socialists must depend on the
State - to enforce the theory.
With private
property, simple rules and commonly elected courts would solve most
conflict. Wikipedia also contrasts capitalism with fascism, where “the
State controls and/or cartelizes the means of production while
maintaining a façade of de jure private ownership.” OK, so the U.S. is
a fascist country. Only as the original capitalism has been turned into
fascism have the middle class suffered, and private ownership has
devolved into criminal confiscation by the State for the Corporations.
Free trade is defined as “trade that occurs as a result of voluntary
agreements between buyers and sellers.” That is not how America works.
You have to pay additional taxes, on top of personal taxes. Users
fees. Regulations. Fines. The government in America is just a racket,
supporting the cartelizing definition of fascism. I am, in one sense, a
collectivist. I believe that if we had no government interference in a
truly free market economy, we would voluntarily collectivize on an
unprecedented scale. Economist Hayek concurs, and outlines this theory.
One injustice
perpetrated on the People of the World has been the morphing of the
corporation into an “individual.” This bit of legalese allows the
corporation to operate inside of the free market under a cloak of
illusion. This allowed the corporations to acquire more wealth than the
individual, which allowed select corporations to infiltrate and bribe
governments. From that has sprung our Corporatism.
Most thinking
people agree that there has never existed pure Capitalism. The central
principles of Capitalism are:
Private property rights
Free Market – The purest definition intends that all trade is
voluntary, “free of coercive influence. The only reason for
government in this situation, and the only reason the U.S.
government was originally founded, is to act in a
defensive mode to forbid coercion among market participants but does
not engage in proactive interventionist coercion.” Because of the
nature of government, government cannot accomplish this task, and
thus do I believe in the abolition of government. Yet, we should
reestablish true Capitalism.
Profit – Profit is the “essential characteristic of
capitalism.” Profit driven economies have brought about the most
beneficial inventions. Most inventors do so for profit. Capitalist
economies provide a larger middle class, and the ability (when left
unfettered by govenrment intervention) to become wealthy. Socialism
works well only under certain circumstances, but always fails in the
end. For Socialism, the circumstances for initial succes is that
the population must be smaller, relatively, and they must have a
common culture, either race or religion. No country is totally
Socialist, and no country is completely un-Socialist. As seen in
Europe, two crucial phenomena occur under Socialsim. First, the
citizens eventually become non-producers. Even in the supposedly
utopian Scandanavian Socialism, the workers complain that 1 in 5
people now live off welfare. The second problem with Socialism is
that families become smaller. Therefore, the number of workers
eventually cannot support the number of retirees. This is the
primary reason that some want Turkey admitted into the EU – to
support old, white Europeans. When profit markets are
allowed to thrive without coercion, the highest percentage of people
produce, gain wealth, and are permitted luxury in a beneficial
blend.
Free Enterprise – There is one glaring difference between Capitalism
and Socialism, Communism, or Anarchism. If the latter three’s
systems of abolishing private property were enacted, free marketers
and capitalists would be coerced into giving up their systems. In a
Capitalist economy, these groups could exist in an environment of
communal support – I might even join. Wikipedia states that
individuals and companies generally own production. However, the
capitalist model allows non-profit organizations. These include
“cooperatives, credit unions, and communes.” So, Communism is
allowed to exist in a Capitalist model; Capitalism is NOT allowed in
the Communist model.
I do admit that the
creation and sustenance of corporations is harmful to both
Socialism and Capitalism.
Capitalism has proven to give people the most freedom. A negative
byproduct includes pollution. Pollution could be reduced to the point
of negligibility were we to use bio-diesel (and destroy the Corporations
and State). Pollution affects everyone, and thus good practices must be
enforced by the people, or a volunteer and unanimously agreed upon
policing unit. Pollution damages future production, the standard of
living, and weather. Neither Communism nor Corporatism has halted foul
ecological practices. Europe’s free market Socialism seems to be
winning the contest for a clean environment, but the free market in
America, if allowed to burgeon, has already (through Rudolph Diesel)
answered the problem and is simply stymied by regulations. Without the
existence of corporations or government, both communes and individuals
could enact cleaner energy policies.
Some
say the disparity of wealth is an argument against Capitalism.
Wikipedia: “If all agents possess the same amount of
wealth, they will immediately begin investing it in different ventures
which will pay off to varying degrees.” Therefore, the only way to
continually reestablish equality is through theft. This process, when
done by government, is called taxation. Competition is not an essential
part of human society, it is human society. To try and refute
this is simply idealism, which Marx himself protested.
That leads me to one of the great proponents and
evolvers of the capitalist theory, Ludwig von Mises. Modern economists
admit that division of labor is the primary intent of economic systems.
Communism would have the State dictate this division. Capitalism
without government would have no
way
to regulate this important necessity. George Reisman of the Jefferson
School of Philosophy, Economics, and Psychology writes: “When von
Mises appeared on the scene, Marxism and the other socialist sects
enjoyed a virtual intellectual monopoly.” In the midst of the argument
for centralized government, a more dominating State, von Mises proved
that in the absence of regulations, economies naturally divide labor
into the most stable possible position. Von Mises provided a
substantive and exhaustive defense of Capitalism against Socialism.
Reiss: “Socialism, von Mises showed, in his greatest original
contribution to economic thought, not only abolishes the incentive of
profit and loss and the freedom of competition along with private
ownership of the means of production, but makes economic calculation,
economic coordination, and economic planning impossible, and
therefore results in chaos… Thus, von Mises demonstrated that capitalism
is an economic system rationally planned by the combined,
self-interested efforts of all who participate in it. The failure of
socialism, he showed, results from the fact that it represents not
economic planning, but the destruction of economic planning,
which exists only under capitalism and the price system.”
One of von
Mises’ benefactors was award winning and renowned economist, Friedrich
Hayek. Hayek evolved some of von Mises’ theories. His 1939 book,
The Road to Serfdom, was decried upon publication, but proved to be
prophetic. He claimed that centralization of the means of productions
would lead to totalitarianism. Whether that centralization has been
into the State or the Corporations, Hayek was right that it leads to
oppression of the many by a few.
Ayn Rand is
still another hero of Capitalism. Rand is credited with creating the
philosophy of Objectivism. The Intellectual Conservative writes that
Objectivism “holds that man exists for his
own sake, that the pursuit of his own happiness is his highest moral
purpose, that he must not sacrifice himself to others, nor sacrifice
others to himself.” We harken back to Truth being fixed and eternal,
despite our perception of it. To Rand, freedom of the individual was
paramount, and eternal truth. Ayn Rand wrote: “This is why trying to
dissociate self-ownership (right of life) and free action (civil
liberties) from free trade and free property (capitalism) is futile and
ultimately self-destructive: without one, the other cannot exist.” To
Rand, and I believe her perception of this truth to be correct,
capitalism is simply rational.
A final notable proponent of
capitalism is economist Milton Friedman. Friedman argues extensively
against centralization of power. He further endorses decriminalization
and decentralization of
prostitution,
drugs, and other consensual acts to better allow for a free market.
Friedman intensively showed how the Great Depression was made “great” by
government intervention, i.e. the contraction of money through the
command economy. Most Socialist are idealists, and believe a benign
central government would most adequately provide for the citizenry.
Milton states what they don’t want to admit. “Concentrated
power is not rendered harmless by the good intentions of those who
create it.” Another quote by Friedman had me hooting in support.
Friedman: “I am in favor of cutting taxes under any circumstances and
for any excuse, for any reason, whenever it's possible.” The capitalist
philosophies of von Mises, Hayek, and Friedman, among others, are
represented in the Austrian School.
A few notes about Anarcho-Capitalism before my summary. The are certain
glaring issues that all who uphold some form of government inevitably
bring up. I will try to give ideas on how these issues can be
encountered and bested. First, police. You still have rule of law in
Anarchy, in fact it is an important theme of Anarchy. That rule of law
is granted by God and Nature and needs no government to mandate it. The
right to speak freely, practice religion, defend, privacy, due process.
All these are inherent rights. We don’t need a government to admit
those rights, but what has been attempted is creating a government to
protect those rights. The U.S. Government has failed in that endeavor.
The next argument, is this: OK. You have rights, but
who is going to serve to protect those rights, as the local police
departments are meant to do, but do not do. More importantly, who is
going to protect us from enemies if not the government military. The
ultimate responsibility for self-defense is each and every individuals,
just as it is now. The U.S. police aren’t here to stop crime, only to
enforce broken laws. The term for non-governmental police and military
are ‘private defense agencies,’ or PDAs. PDA’s are private. That is
not right, some might say. I remind you that the Elite and the
Corporations almost exclusively use Private Defense Agencies. What do
they know that we don’t? It’s that the free market allows you to have
the best product or service at the best possible price. Therefore they
have intervened in the PDA industry, creating psuedo-monopolies,
inflating the price, leaving private defense an expensive commodity that
the common man cannot now afford. Groups that are considered PDAs
include neighborhood watch programs, militias, private defence
contractors, security guards, and mercenaries. If defense were allowed
to flourish in a free market without government intervention, we would
be all be much safer, and much more secure.
A defining philosophy, which Anarcho-Capitalists do
share with Anarchists comes from Answers.com. “Anarcho-capitalists
oppose coercion, which they (like other libertarians) commonly define as
the act of preventing one from having the willful use of their person or
property by employing physical force, the threat of such, or fraud.”
Coercion is inherently evil or wrong or unjust, or whatever derogatory
word you want to use. Anarchists hold that capitalism IS coercion.
However, it is not quite clear why a voluntary economic agreement should
be considered coercion. I will agree that some necessities, such as
roads and energy, should be a non-profit affair. As to the public
ownership of land, it is only one part of human nature. The Anarchists
have given no plausible theory on how to defeat human nature’s desire
for privacy and property, and therefore are not considering the fact
that capitalism, just like socialism, will always intertwine into the
fabric of societies – especially societies devoid of government.
Answer.com goes onto to answer another riddle. Why do
Anarcho-Capitalists oppose the State, such as the United States?
“Anarcho-capitalists hold that a modern territorial state is inherently
coercive. For example, the United States maintains that it has
co-ownership of the bodies and possessions of its citizens (i.e., the US
government can punish you for harming yourself, and that punishment can
involve seizure of your property). Another significant example is that
the United States, like any other country, does not allow its citizens
to truly own land.” Abolition of private property is the most important
dictate of Communism and Marxist Socialism. Capitalism expects complete
private ownership. Through Allodial title, Americans truly do not own
their land. These United States of America, it should be noted, is
actually a corporation.
How
would you know who owns what without a government? “Contracts,
explicitly agreed to, are the form of private law that would pervade
such a society.” Prisons or indentured servitude would be the lot of
criminals. In an Anarcho-Capitalist society, only those who coerce or
threaten to coerce others, or those who defy property rights, will ever
become a criminal. Under that system, over half the men in U.S. prisons
today would be freed. These are men and women who have never harmed any
person or property, except their own. However, a multitude would need
to be put into prison for breaking these laws so far without fear of
retribution. Mainstream media propagandists and pension-looting CEOs
are the first to come to mind.
Again,
we are reminded why Anarcho-Capitalism’s ‘inclusiveness’ makes it the
epitome of good society. Anarcho-Capitalism “would be panarchic. This
illustrates the fundamental difference of implementation between
capitalism and communism. A commune can exist within an
anarcho-capitalist world. People may group together and voluntarily
live in a privately owned democracy, or republic, or even a monarchy, if
they so choose. Anarcho-capitalism is capable of encompassing any form
of lifestyle, provided the lifestyle does not involve initiating force
or fraud on another person.
Without government, individuals will be allowed to do what they want.
There should be some way to curb the mostly abberant individual behavior
of theft and violence. Governments have never stopped this behavior,
and have adopted this behavior on a scale impossible by even a large
group of individuals. Individuals can cause slight damage to freedom
and property, the ulimate of which has been serial mass murder, usually
in the dozens. This is a rare occurrence, despite mainstream media’s
insinuations. Governments, however, have been the primary and major
attacker of individual AND collective liberty. Governments have killed
billions and tortured millions. Without government, there would be more
freedom. Capitalism allows for several types of society, including
Communism. If Communists rightfully own land and want to use it
communally, they would be allowed to do so until the rightful owner
sells the land. Under Communism, Capitalism would be stamped out.
My updated analysis, at this point, is that
Anarcho-Capitalism is the ideological theory which allows for the most
liberty, equality, and solidarity. Death to Government! Vive la
private property!