What Is Capitalism?

Capitalism as defined by Dictionary.com gives the impression that individuals and corporations run the economy by producing, distributing, and exchanging wealth. This is a partly true, partly untrue definition. Capitalism is an economic system, and it is maintained by private individuals as opposed to the government. As corporations are run by private individuals, and the definition still does not cover the full scope of capitalism objectively.

In Objectivism, capitalism is the only social system that is able to protect individual rights. Ayn Rand's article “What is Capitalism” within the book, Capitalism: The Unknown Ideal, spells out the system beautifully.

Within the system of laissez-faire capitalism, the government's place is the defender of individual rights. Its job is to protect rights by preventing the unlawful use of force against innocent individuals, and will only use its monopoly of force against those who initiated it.

All men within capitalism are free to trade, exchange, and conduct business with other men in a voluntary manner. Every person within a capitalist society is free to achieve his highest potential, or even to choose to not achieve anything, as no one is allowed to use physical force to move men. Every person would have the same opportunities to succeed, as all objective laws would apply to all men equally.

So why does capitalism have such a bad reputation in the 21st century? It is mostly because as a social system, capitalism is incompatible with the social systems that dominate the world today: varying degrees of socialistic and free economies, aka the “mixed economies.”

As spelled out in Rand's article, capitalism cannot “survive in a culture dominated by mysticism and altruism....” Meaning those philosophies advocating the sacrifice of one person for the “good” of others, whether for a god or for society. “No social system (and no human institution or activity of any kind) can survive without a moral base. On the basis of the altruist morality, capitalism had to be—and was—damned from the start.” (1)

For those who believe it is okay to take resources, money, and the lives of others in order to preserve the society or appease some deity, capitalism is not for you. Without a recognition of individual rights, capitalism cannot survive in today's society.

By: John_Smith_2010

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Without a recognition of individual rights, capitalism cannot survive in today's society...Read the rest of this post here or visit www.objectivistblogger.com