Capitalism..

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Capitalism is an economic system based on the private ownership of the means of production, with the goal of making a profit.

Central elements of capitalism include capital accumulation, competitive markets, and a price system.

There are, however, multiple variants of capitalism, including laissez-faire, welfare capitalism, and state capitalism.

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Laissez-faire, is an economic environment in which transactions between private parties are free from government restrictions, tariffs, and subsidies, with only enough regulations to protect property rights.

The phrase laissez-faire is French and literally means “let (them) do”, but it broadly implies “let it be,” “let them do as they will,” or “leave it alone”. Scholars generally believe a laissez-faire state or a completely free market has never existed. (Source Wikipedia).

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Welfare capitalism refers to capitalist economies that include comprehensive social welfare policies. Alternatively, welfare capitalism refers to the practice of businesses providing welfare services to their employees. Welfare capitalism in this second sense, or industrial paternalism, was centered in industries that employed skilled labor and peaked in the mid-20th century.

Although European welfare capitalism is often associated with mixed economies, welfare states can and do exist independently of the economic policies associated with mixed economies, such as state interventionism, regulation and macroeconomic stabilization policies. (Source Wikipedia).

State capitalism is usually described as an economic system in which commercial (i.e. for-profit) economic activity is undertaken by the state, with management and organization of the means of production in a capitalist manner – maintaining the conditions of wage labor arising from centralized ownership, even if the state is nominally socialist.

State capitalism is characterized by the dominance of state-owned business enterprises in the economy. Examples of state capitalism include corporatized government agencies (agencies organized along corporate and business management practices) and states that own controlling shares of publicly listed corporations, effectively acting as a large shareholder or a capitalist.

State capitalism has also come to refer to an economic system where the means of production are owned privately but the state has considerable control over the allocation of credit and investment, as in the case of France during the period of dirigisme. Alternatively, state capitalism may be used (sometimes interchangeably with state monopoly capitalism) to describe a system where the state intervenes in the economy to protect and advance the interests of large-scale businesses.

This practice is often claimed to be in contrast with the ideals of both socialism and laissez-faire capitalism.

There are various theories and critiques of state capitalism, some of which have existed before the 1917 October Revolution. The common themes among them are to identify that the workers do not meaningfully control the means of production and that commodity relations and production for profit still occur within state capitalism.

Other socialists use the term “state capitalism” to refer to an economic system that is nominally capitalist, such that private owners gain the profits from an economy where decisive research and development is done or subsidized in the public sector at public cost.

Marxist literature typically defines state capitalism as a social system combining capitalism, the wage system of producing and appropriating surplus value with ownership or control by a state. By that definition, a state capitalist country is one where the government controls the economy and essentially acts like a single huge corporation, extracting the surplus value from the workforce in order to invest it in further production.

Friedrich Engels, in Socialism: Utopian and Scientific, argued that state capitalism would be the final stage of capitalism, consisting of ownership and management of large-scale production and communication by the bourgeois state.

Libertarian socialists and some left communists use the terms “state socialism” and “state capitalism” interchangeably, with the latter intended to be pejorative.

Some even use the term to refer to capitalist economies such that the state provides substantial public services and regulation of business activity, this could refer to several ideologies ranging from social liberalism and social democracy to fascism.

The term is also used by some in reference to a private capitalist economy controlled by a state, often meaning a privately owned economy that is subject to statist economic planning.

In the 1930s, Italian Fascist leader Benito Mussolini said that were Fascism to conform itself to modern capitalism, it would end up as being “state socialism turned on its head”.

This term was often used to describe the controlled economies of the great powers in the First World War.

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A free market is a market structure in which the distribution and costs of goods and services, along with the structure and hierarchy between capital and consumer goods, are coordinated by supply and demand unhindered by external regulation or control by government or monopolies.

A free market contrasts with a controlled market or regulated market, in which government policy intervenes in the setting of prices. An economy composed entirely of free markets is referred to as a free-market economy.

Although free markets are commonly associated with capitalism in contemporary usage and popular culture, markets have been also advocated by socialists and have been included in various different proposals for market socialism, co-op businesses, and profit sharing…

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..as referenced briefly in (radical socialist champion) Michael Moore’s film, Capitalism: A Love Story.

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Capitalism is considered to have been applied in a variety of historical cases, varying in time, geography, politics, and culture.

There is general agreement that capitalism became dominant in the Western world following the demise of feudalism.

(Sidebar).

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According to Webster: “feu·dal·ism,” A political and economic system of Europe from the 9th to about the 15th century, based on the holding of all land in fief or fee and the resulting relation of lord to vassal and characterized by homage, legal and military service of tenants, and forfeiture.

Continuing…

Economists, political economists, and historians have taken different perspectives in their analysis of capitalism. Laissez-faire economists emphasize the degree to which government does not have control over markets and the importance of property rights.

Others emphasize the need for government regulation, to prevent monopolies and to soften the effects of the boom and bust cycle.

Most political economists emphasize private property as well, in addition to power relations, wage labor, class, and the uniqueness of capitalism as a historical formation.

The extent to which different markets are free, as well as the rules defining private property, is a matter of politics and policy.

Many states have what are termed mixed economies, referring to the varying degree of planned and market-driven elements in an economic system.

Proponents of capitalism use historical precedent to claim that it is the greatest wealth-producing system known to man, and that its benefits are mainly to the ordinary person.

“Critics” of capitalism “associate it with economic instability” and an inability to provide for the wellbeing of all people.

(Sidebar).

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modern slavery in America 1a

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 ..and/or, communism! 

Continuing…

The term capitalism, in its modern sense, comes from the writings of Karl Marx. In the 20th century defenders of the capitalist system often replaced the terms capitalism with phrases such as free enterprise and private enterprise and capitalist with investor or rentier in reaction to the negative connotations sometimes associated with capitalism.(Source Wikipedia).

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 (Ludwig von Mises).

If history could teach us anything, it would be that private property is inexorably linked with civilization. – Ludwig von Mises.

Ludwig Heinrich Edler von Mises, Born September 1881 – 10 October 1973) was a philosopher, Austrian School economist, sociologist, and classical liberal. He became a prominent figure in the Austrian School of economic thought and is best known for his work on praxeology.

Fearing a Nazi takeover of Switzerland, where he was living at the time, Mises emigrated to the United States in 1940.

Mises had a significant influence on the libertarian movement in the United States in the mid-20th century.

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Unfortunately, the good folks above and the shiny new car, “The Fisker Karma,” displayed in the image I have provided above are in Finland. Not that I don’t want to see Finland’s economy flourish, albeit with 24 million Americans either out of work or underemployed, (call me selfish) …

(Sidebar).

In 2010, the Department of Energy awarded Fisker a US $529 million green-energy loan, primarily to assist the company in transitioning the Karma, which is assembled in Finland, before entering the American market.

Fisker collected nearly US $200 million until February of 2012, when the government froze the loan because the company was failing to meet the government’s milestones.

Three months later, in May, Fisker spokesman Robert Ormisher told ABC News that negotiations with the DOE were ongoing, and “We’re hoping for a conclusion fairly soon.”

Question: What is it about Barack Obama and $500 million loans to green companies that fail?

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If a private citizen lost even 1/10 the amount of money in bad investments as Barack Obama has lost, he or she would be out of a job, and very likely facing charges of embezzlement.

A gentle reminder, “Barack Obama” is not…

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 ..a MONARCH  

Nor does he show any interest when it comes to supporting the American worker…

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On domestic policy, let’s just say that our “Commander in Chief’s” first priority isn’t (job creation)…

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..and when it comes to national security, Barack Obama and his administration have proven themselves to be thoroughly inadequate… 

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..by their response, ..or more correctly, ..their utter lack of response, to the “jihadists” attack on America’s embassy in Benghazi.

So what the hell happened to… 

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Now multiply this guy by 24 million and then subtract the fact that Barack Obama simply doesn’t give a damn, and you will understand why it was unequivocally stupid to reelect Barack Obama.

The generation that grew up with values passed down from their parents, (my generation), is all but vanished in the 21st  Century. (Let’s call today’s generation the Obama “Commie”generation), since he’s the current leader of America’s “march to communism.”

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Truth forges understanding, I’ll be back tomorrow

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Crusader Rabbit…

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