I decided to make this thread for any arguments for or against capitalism, but I must define some specifics, or standards, that will be used to base any arguments off of. I'm setting myself in the affirmative that [free-market] capitalism is a better economic process than socialism, communism, National Socialism, or a mixed-economy (or any variation of).
First off I must distinguish by when I say capitalism I mean unhampered, laissez-faire, free-market capitalism. I must also say that I will be arguing from the Austrian view, in comparison to let's say Keynesian economics. (I'll be defining free-market capitalism in the Austrian view.)
I'll even go further to define some foundations of capitalism, such as:
1. Private property is a building block of civilization. Private property rights should be respected, and that private property leads to prosperity more so than communal, or State, ownership of property and resources. Private property is a part of individual freedom and creativity, if one owns their own property, they can do as they wish, and invest, save, or produce.
The Ethics and Economics of Private Property
"Human Rights" as Property Rights
Property Rights and the Theory of Contracts
2. The division of labor is superior to the organization of labor. The division of labor (with private property) leads to specialization of skills and resources and an interdependence through cooperation in the market. Individuals will specialize in their most productive means.
Freedom, Inequality, Primitivism, and the Division of Labor
3. Value is subjective. Compared to an objective view of value, or the labor theory of value, that ensues the value of a product or service comes from the amount of labor put into it, and this is objective. The subjective theory of value embraces individuals own subjective value preferences, that we value commodities differently from one another, and the value of a good does not equal the work put into it.
This also leads to differences of opinion on value judgments. If value is subjective then what one might view as less one views as more. If one prefers sports to reading, that's a value judgment on their part, if one prefers poetry to detective stories, that's a value judgment, if one prefers black metal to classical music, that's a value judgment, on the part of the individual.
Principles of Economics - Chapter III: The Theory of Value
Artwork and the Subjective Theory of Value
An Introduction to Value Theory
4. Prices are an important part of the market process. This leads into economic calculation, and that without the formation of prices on the market through the individuals on subjective values that the value of commodities in comparison to the demands of the market are distorted, as no one can really know what their real worth is, and the allocation of resources becomes failed. This would be in contrast to a communist economy where there would be no prices, or prices would be set arbitrarily. Prices are an important part of economic calculation.
Principles of Economics - Chapter V: The Theory of Price
Economic Calculation in the Socialist Commonwealth
5. Intervention in the market causes distortions in the market. This can branch off into different sub-topics, such as price fixing of all kinds (minimum wage laws, price fixing on commodities, artificially lowering or raising interest rates), the printing of new money, and a redistribution and confiscation of resources (such as taxation) can hamper a market economy. Yet, intervention can only be caused from the imposing State of a given territory or region.
6. Competition leads to more innovation, creativity, and better quality amongst goods and services. With competition businesses will compete, and try to keep their customers by constantly trying to provide better goods and services at lower prices. Competition keeps businesses in check, and through competition you will know the best allocation of resources from the least productive to the most productive sectors of an economy. Competition gives choices amongst consumers and producers alike, to pick from a variety of goods and services. This itself can relate to the division of labor, of many people who specializing in various areas of the market competing with each other to meet the demands of the consumers.
The Meaning of Competition
7. Central banking is hazardous to an economy. As there is competition in the market so should there be competition in banking, even as far as allowing competing currencies. By having a central banking you are giving a monopoly of the money supply to one group of people, and they are the sole counterfeiters of this currency. This leads to a disastrous policy of inflation. Also, with central banking, the government can get money instantly for whatever means they want, whether it be war or to fund a large government program, they can inflate and devalue the money supply for instant cash, and with this increase in the money supply so goes the value of the currency as it is devalued with the increase. This is a vicious tax on the people as prices will rise, and the value of the currency diminishes. A central bank is a tool of the State, it is a scapegoat for those in business with a central bank, as they can be bailed out for their own bad businesses decisions.
The Case Against the Fed
End the Central Bank
Fractional Reserve Banking
Abolish The Fed
These are just a few points I'm making on capitalism. It would be nice to also take a look at the top 10 myths about economics, and capitalism in general.
Also, as a debate or discussion, I'd like to keep it civil, and stay on topic, that's why I made this thread in comparison of breaking off discussions on capitalism from other threads![]()
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