Capitalism

What is Capitalism? 

One thing is certain, Capitalism (With a capital C) is not synonymous with exploitation and oppression. Rather than talking about those sorts of corruption that may be present within any economic system, whether intended or unintended, let's look at three defining traits that make up a capitalist system. Forewarning, this will be presented in a positive light.

Three Defining Traits of Capitalism

#1 Private Property

You are allowed to own the fruits of your labor. You are the agent that is responsible for what is done. It is not owned by a sovereign, lord, king, state, dictator, community, religious authority, or tribe. This is an important foundation for the next two points to be possible. This gives you a personal responsibility for the stewardship of the capital and resources at your disposal.

#2 Voluntary trade

Because you own the capital, and fruits of your labor you are allowed to keep, trade, sell, barter, or give your 'fruits' to others without compulsion. You cannot force others to trade or work, and they should not be able to force you to do these things either. (This is known as slavery, servitude, bondage, feudalism)

This also means your labor. 

You are free to sell, trade, barter, or give your labor to others of your own choice. In other words; you can make a job, get a job, or have no job. You have the liberty to live as you choose. This is important for the last defining trait of Capitalism.

#3 Profit Motive

You are allowed to do things to make your life circumstances better (or worse). This can also be called creating gain, getting more, or making a profit.

When two people trade, it is because they value what they are getting MORE than what they are giving. (Otherwise, why would you trade? If you didn't like the trade it would be stupid to do so.)

What this means is that when people are in service to others (creating something others value), they themselves benefit!

What shall we make of all of this? To give a short and simple explanation, the ideals of capitalism began to develop in reaction to the feudal states of the time. You did not have property, the lord did. You would trade for what the lord decided, and any gain belonged to the lord, who would distribute or take from the lower classes at their pleasure.

Profit motive means you are allowed to thrive and change your circumstances. It is not left to some privileged individual(s) who feel they have the moral superiority to know what you need better than yourself.

Voluntary trade means that you are free to make your own choices. You don't have to suffer at the inaction, indifference, or moral superiority of privileged individuals who think they know what you want and don't want better than yourself.

Private property means that you own yourself, and what you can produce. You are free.

Is this perfect? No. You still get greed where people try and take from others at their pleasure. You will still see poor, and rich. You will still see those who are good, bad, selfish, and selfless. But you will see less of the bad...because it seems that most of the time people try to be decent human beings and the incentives favor the good.

It does away with the 'systemic' in systemic problems. It creates the incentive to do good for others without force or violence. Capitalism becomes a reflection of what is in the hearts of the people that live within it. (For good, or bad)

It gives a chance for everyone to make that choice.

Do you really disagree with Capitalism?

(As a side note, competition AND cooperation are a natural result of this for BOTH good and bad. The basis (speaking of capitalism) is really really good for improving peoples lives, though externalities, and perfect information act as limits on it (Though I think these limits will also exist with greater impact in other systems generally.) Capitalism also utilizes a Market system, which I view as a natural extension of the above points and the social, navigational, and technological changes at its early period of history. Further discussion of markets compared to earlier systems (Command, or Tradition) might be a good discussion in another post.)