Capitalism is hard to define. Most people would agree that capitalism is an economic system in which the means of production are controlled primarily by private interests (individuals and/or corporations) and in which development proceeds mainly due to accumulation and reinvestment of profits gained in a free market.
Capitalism is not the same thing as a free market economy; a free market can exist without capitalism, and similarly, an economy can have the means of production controlled by private interests accumulating and reinvesting profit, without necessarily having a free market (monopolies and cartels can create such an environment).
Cazort.net has a nuanced stance on capitalism. We generally support the free market, but we do not necessarily agree with all positions typically taken by free-market advocates.
Capitalism, as an economic system, has many advantages, but it also has downsides. Furthermore, the effect of capitalism on an economy depends on how it is implemented, including details such as how the money system is designed and regulated, how government is structured, the tax system, and laws governing corporations, investment, and banking.
Capitalism alone is not sufficient to ensure prosperity for all people. Capitalism on its own, when paired with an ineffective or unjust money system, can lead to massive economic failure (think great depression, or the Asia crisis), and can also lead to a massive concentration of wealth in the hands of a very small number of people (as is happening in the U.S. today, or as is the case in many third-world economies).
We also do not believe in complete privitization. Some things simply make more sense to be controlled by the government. A successful brand of Capitalism must involve:
- A fair and effective money system
- An effective government
- A simple and fair tax system
- Effective Laws governing Corporations - In particular, preventing monopoly and anti-competitive behaviour.
However, it is important to note that we do not uniformly reject capitalism, and in particular, we strongly support the free market. Communism (as it played out in the former U.S.S.R.) was a failure because of the complete rejection of capitalism--and in particular, because of a command-and-control approach to the economy, rather than using the free market to allow business to self-regulate.
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