Frequently Asked Questions about Capitalism

This post was copied from my personal blog.

Today I stumbled across a website called Capitalism.org and honestly I’m amazed that I’ve never seen this before. Apparently it’s a function of Capitalism Magazine, which I subscribe to and read quite often. If you aren’t sure what exactly Capitalism is, or if you’ve learned your definition from people who tell you it’s some evil monstrosity where the rich rule the poor, then please take the quick Capitalism Visual Tour so that you can learn the truth for yourself.
Anyhow, the best part about the site, in my opinion at least, is the FAQ:
This is simply a great resource for people to use whenever they have a question as to how freedom (capitalism) would address common societal or personal issues. They cover topics from education to antitrust to war etc. I enjoyed reading through the different topics and I wanted to share some of my favorites as well as some of my comments. So, here are a few selections, but I encourage you to explore the entire thing:

What is capitalism?
Capitalism is a social system based on the recognition of individual rights, including property rights, in which all property is privately owned. Under capitalism the state is separated from economics (production and trade), just like the state is separated from religion. Capitalism is the system of of laissez faire. It is the system of political freedom.

I bet you never heard that definition in school, or in the pop culture, or on any news program, except for maybe John Stossel’s show on Fox Business.

Don’t the antitrust laws stop monopolistic practices?
Absolutely not. Harmful monopolies from the old AT&T monopoly (created by government regulations), to the U.S. Post Office monopoly were created by the state. The U.S. Post Office, for example, maintains its monopoly on the lucrative first class mail market by having the state outlaw its competition.

They also cover Standard Oil and the “robber barons” of the railroads. Government intervention is the only way for a harmful monopoly to exist, period.
– inflation

What causes inflation?
Inflation is the result of state intervention into the free market for money — specifically the government ‘counterfeiting’ of dollars (also fiat dollars) which compete with your earned dollars for goods and services. As the amount of paper money bidding for goods increases and the amount of goods supplied stays relatively the same, the prices of all goods increase. Inflation is like a secret tax that robs you of the value of your money before you have a chance to spend it.

That reminds me, have you seen Obama’s latest grandstanding about “fat cat bankers?” He plans to tax the big banks to recoup some of the money from TARP. Isn’t that just ingenious? Basically it’s as if Obama sold you a bag full of $100 bills and charged you $20 for it, then went and gave a speech touting the fact that he “taxed” you for $20. Nonsense.- corporation

What is government’s role in regards to corporations?
Government’s job is not to regulate corporations and manage their affairs, but to protect their rights, just as they would any other member of society. Government’s job is to treat a corporation no different than any other citizen, granting it no special favors (corporate welfare is just as wrong as non-corporate welfare).

You have to be very careful here though when you talk about corporate welfare. Bailouts are corporate welfare. When a bank or an airline fail (go bankrupt) they should not get money from the government to save their business. They should file for bankruptcy just like anyone else. However, tax breaks are not corporate welfare. Tax breaks given to certain companies but not other companies are examples of Crony Capitalism, and are evidence that our tax code is immoral and horrendous, not evidence of corporate welfare.- abortion

What is the essential issue concerning abortion?
The essential question concerning abortion is: does the fetus have an inalienable right to be in the body of its’ host against the host’s will?

In my opinion this is an error in identification. The fundamental issue concerning abortion is the definition of a human life and more specifically when a human life beings. It’s not about fetus rights but about human rights, and so we must define objectively the beginning of a human life. After that point, there can be no moral grounds for the destruction of that life. The authors go on to state two definitions: One that a human is defined as a rational animal, in that it uses its mind to survive, and two that a fetus isn’t a human until it is outside of the mother’s womb. Those two definitions offer a stark contradiction. Studies have shown time and time again that the fetus is fully developed with a functioning mind after the first trimester, and that these “feti” actually attempt to fend off the instruments of the abortion doctor in a futile attempt to stay alive. It is simply impossible to rationally escape the conclusion then that a fetus becomes a human the moment it develops brain function, and it should so be illegal to murder the fetus after that point.- profit

What is not profit?
Stealing wealth from others, through fraud or force, is not profit, but theft (an initiation of force). Whether that theft is called a mugging, welfare, or “voluntary” taxation [a contradiction in terms], it is still theft and is always evil. Theft, like loss, is destruction; trade, like profit, is creation. To pursue profit is to pursue creation. It is an act of virtue and not a vice.

Your profit is the symbol and reward for the value of your creation, as judged by the mind’s of others who have freely-given given their wealth to you in exchange for it. Do not let the leftist intellectuals who infect our universities persuade you from thinking otherwise. In truth, it is those altruists who condemn the profit motive, who are guilty of evil.

– taxation

How will one support government without taxation?
The removal of all taxation would be the last step to implement in the transition to a free capitalist society.The costs of a proper government — with an army (engaged only in self-defense and not imperialism), a court system, and a police force — are very small, and easily paid for by voluntary financing methods. Such methods are used by nonprofit agencies, like churches, to raise billions of dollars. Observe how one “know nothing capitalist” Ted Turner recently gave a billion dollars to a useless, anti-capitalist organization like the United Nations.

As an intermediate step toward no taxation, I support the Fair Tax. It’s not truly voluntary: every time you buy something new or purchase a service, you are forced to pay a percentage in taxes. However, you can choose to not buy new things, but buy used things, and you can choose to trade work for work instead of using money to buy services. I believe such a system would free up so much capital by removing all of our existing ridiculous taxes that it is really the only way to save us from total collapse and have a peaceful transition towards Capitalism and Freedom. Otherwise… well there is Secession… but then why secede as a state if your state government is just going to govern under the same premises as the federal government does now?
This is why it is important to educate as many people as possible in the principles of freedom and capitalism. One way or another the fascist empire called the United States of America is going to collapse. I hope we can accomplish a peaceful transition from fascism to capitalism, or that we can peacefully separate like they did in the USSR, so that we can establish capitalism in as many states as possible. If we stick with the ideas of altruism, collectivism and statism though, the collapse will have no chance of occurring without war and bloodshed.