Again: What is Capitalism?

I keep reading and viewing items about capitalism. It is almost universally assumed that we know what capitalism is, and with this assumption the discussion goes on to praising, condemning, or improving capitalism. What is praised is the efficiency of production and technological innovations, making more goods available at cheaper prices. What is condemned in the resulting poverty and unemployment. What is advised — as by social democrats — is more government involvement is regulating industry, promotion of worker-owned factories, and extending welfare programs.

But the question of what is capitalism is not addressed. And when it is addressed, it is misrepresented. The first misrepresentation is to view that capitalism is only a form of economy — specifically a market-economy. But a market-economy is just barter or trade, which has existed from time immemorial. Neither can capitalism be identified with factory production — again something that has almost always existed as a specialized form of production.

Contrary to being an economic system, it is a political system. How so? It is a political system which bars people from taking up free subsistence land. This is a necessary condition for the existence for an industrial market-economy. What I am saying is that capitalism is a political system which forces people into a market-economy.

So, what would be the antithesis of capitalism? It would be a political system which grants everyone the right to a chunk of free subsistence land. Does such a system exist anywhere in the world? Yes, all indigenous people who have not been forced into the market-economy are free of capitalism. The next closest to this are, for example, the peasant villages which are to be found in Eastern Europe and Asia, which are more or less self-sufficient.

Because under capitalism one is, as Chomsky says, “driven into the industrial system, and into wage-slavery”, and “driven” is another word for “forced,” and the “force” comes from the laws of government, capitalism is a political system.

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There are only a few writers that have viewed the essence of capitalism as I view it. See my previous postings:

  • What is capitalism?
  • Is Capitalism a Political rather than an Economic system?
  • Criticism of Capitalism by G. A. Cohen, reflecting on Al Capp’s creature, the Shmoo
  • Capitalism = Proletarianism
  • Origins of the State, Land and Population
  • Primitive Accumulation of Capital (Dispossession of peasant land)

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