What does Capitalism mean?
I try not to bother writing anything that does not somehow qualify as original thought (primarily because I am lazy and it seems rather pointless), though I am sure anything my mind can comprehend has already been written about multiple times before. But I am finally annoyed enough by a number of mind numbing conversations to write about a topic that though probably not original is not written about much:
to whit: what in heaven's name is Capitalism?
A famous Chinese proverb says, "The beginning of wisdom is to call things by their correct name". Its vital that we come up with a concise definition that is comprehensive and accessible.
I have today been subjected to a viewpoint that dropping a few million dollars of aid on Haiti during its devastation was somehow against the principles of capitalism. I was aghast. Capitalism does not prohibit humanitarian aid. The very thought is preposterous. Last week I met some chaps from the Heritage Foundation who ranted and railed against Obama administration's regulation efforts as against capitalism. I asked them whether they believed financial markets should be unregulated and they came up with an emphatic no! So the greatest proponents of capitalism do believe in regulation, ergo, they believe in market failure. It follows either they do not actually propagate capitalism or are not sure what it is.
I have asked professors, think tank chappies, financial professionals and economists and none could come up with a satisfactory definition of capitalism so far. Some say its laissez-faire, but so far haven't come across any serious guy (apart from 1-2 exceptions) only the most daft will admit that its feasible in the real world. Point being, everybody from Newt Gingrich to Glenn Beck is claiming to be a proponent of capitalism while promoting policies that are diametrically opposed to it. The so called 'conservatives' seem to believe that capitalism means lower taxes under all circumstances. But then they come up with more and more areas where government is necessary.
So here is my definition.
Capitalism is a system of economics where the Creation of Wealth is given precedence over its Distribution.
This is the basic succinct version. I am going to add caveats and further detail as I think about this more.
to whit: what in heaven's name is Capitalism?
A famous Chinese proverb says, "The beginning of wisdom is to call things by their correct name". Its vital that we come up with a concise definition that is comprehensive and accessible.
I have today been subjected to a viewpoint that dropping a few million dollars of aid on Haiti during its devastation was somehow against the principles of capitalism. I was aghast. Capitalism does not prohibit humanitarian aid. The very thought is preposterous. Last week I met some chaps from the Heritage Foundation who ranted and railed against Obama administration's regulation efforts as against capitalism. I asked them whether they believed financial markets should be unregulated and they came up with an emphatic no! So the greatest proponents of capitalism do believe in regulation, ergo, they believe in market failure. It follows either they do not actually propagate capitalism or are not sure what it is.
I have asked professors, think tank chappies, financial professionals and economists and none could come up with a satisfactory definition of capitalism so far. Some say its laissez-faire, but so far haven't come across any serious guy (apart from 1-2 exceptions) only the most daft will admit that its feasible in the real world. Point being, everybody from Newt Gingrich to Glenn Beck is claiming to be a proponent of capitalism while promoting policies that are diametrically opposed to it. The so called 'conservatives' seem to believe that capitalism means lower taxes under all circumstances. But then they come up with more and more areas where government is necessary.
So here is my definition.
Capitalism is a system of economics where the Creation of Wealth is given precedence over its Distribution.
This is the basic succinct version. I am going to add caveats and further detail as I think about this more.
posted by Atishbazi | 5:55 AM
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