Capitalism

This blog post is not about capitalism. It is about the word “capitalism”. I believe it is often not a useful word.

Look up definitions of capitalism. A few typical ones, from my four favorite on-line dictionaries, are given at the end of this post. The only element which enters into every definition is (1) the private property of the means of production. Very often, something about (2) a free market is added. So these should be the core elements of capitalism – at least the first, and especially when joined with the second.

Yet, it seems to me that many people talk about “capitalism” without meaning either of these. They use it to mean whatever they see around them, without regard to whether it is caused by (1) or (2) or not. Generally it is the things they don’t like that some corporation does. Pollution of a river will be blamed on capitalism, even though the river is publicly owned. A company suing for patents will be blamed on capitalism, even though patents are a restriction on the market.

If you use the word to mean either (1) or (2) or both, bless you. If you use it to mean anything else, curse you. But besides this blessing and this curse, I have nothing to add to the situation. I wrote this blog post to explain why I have renounced the word. I try to avoid using the word “capitalism” at all, especially with people I don’t know. I can refer to the private property of the means of production, and to the free market, just fine without it. And you can hold me to this, I will not use the word “capitalism” in this blog in the future. Whenever it could be expected, I will link to this post to show people why.

For the sake of context, I am currently in favor of both (1) and (2). Which I thought meant I am in favor of capitalism, until I had some very unpleasant conversations.

an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market

— Merriam-Webster

An economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state.

‘an era of free-market capitalism’

— Oxford

1. (politics) A socio-economic system based on private ownership of resources or capital.
2. (economics) An economic system based on private ownership of the means of production and their operation for profit.
3. (politics, economic liberalism) A socio-economic system based on private property rights, including the private ownership of resources or capital, with economic decisions made largely through the operation of a market unregulated by the state.
4. (economics, economic liberalism) An economic system based on the abstraction of resources into the form of privately owned capital, with economic decisions made largely through the operation of a market unregulated by the state.

— Wiktionary (at the moment)

An economic system in which the means of production and distribution are privately or corporately owned and development occurs through the accumulation and reinvestment of profits gained in a free market.

— The Free Dictionary