Definition: Capitalism Refers to a Bias within Government, Not a System of Government.

A couple of thoughts for you:

GOVERNMENT

Is an organization for the purpose of producing commons.

In practice that may mean Commons for a few.

In practice that may mean Commons for some.

In practice that may mean Commons for all. 

PRODUCTION Capitalism isn’t a form of government. It’s often inarticulately referred to as an economic system (god knows what that means). But operationally, it’s a means of voluntarily organizing production using private property, contract, money, prices, and interest.

  ORGANIZATION We can organize production voluntarily(market capitalism), We can organize production semi-voluntarily(mixed economy), or We can organize production involuntarily(socialism/slavery).

DIVIDENDS We can leave individuals with all of the proceeds (no commons). We can leave the individuals with most of the proceeds (some provision for commons). We can leave individuals the minimum proceeds necessary to preserve the incentives required to voluntarily organize production. We can never let the individuals see the proceeds of their production (socialism, slavery).

In practice all economies are mixed. Out of necessity.  The current attempt at ‘maximizing taxation’ is an attempt to determine the maximum takings that can be appropriated by the government before the incentive to cooperate fails to allow for the rational formation of the voluntary organization of production.  (In other words, they are looking to reproduce slavery.)

A BIAS

When we say ‘capitalism’ we are referring to a bias in favor of either the voluntary means of organization, the voluntary means of distributing dividends, or both.AXIS (A Better Nolan Chart):

 

Organization:

capitalism<—->mixed<—->slavery

vs

Distribution:

meritocratic (liberty)<—->utilitarian<—>equalitarian(communism)

vs

Decision:

authoritarian<——->republican<——->democratic

Source: Frequently Asked Questions |