Category: Natural Law and Reciprocity

Q:CURT:–“WHAT DO YOU DEFINE AS CAPITALISM AND AS RULE OF LAW?”–

Both Capitalism and Rule of Law are systems governed by the principles of Demonstrated Interests (Investments), Sovereignty (Property Rights), and Reciprocity (Voluntary Exchange).

Capitalism (Philosophy):
– A system characterized by a bias in favor of private control of the means of production.
– Operates with incomplete accounting for externalities that affect the demonstrated interests of others.
– Employs income statement measurements, emphasizing short-term gains and transactional efficiency.

Rule of Law by Natural Law (Science):
– A system favoring investment by any class capable of organizing resources across the spectrum of time horizons, enabling a mixed economy.
– Requires full accounting for externalities, ensuring reciprocity and the protection of demonstrated interests.
– Relies on balance sheet measurements that track changes in all forms of capital, including personal, shared, common, genetic, cultural, informal, and formal assets.

Additions:
(i) While traditionally limited to investments in military and infrastructure, there is no reason the state cannot assume venture capital objectives for strategic investments that private sectors are unwilling or unable to make, particularly when advancing long-term strategic objectives.

(ii) Under a fiat monetary system, the private provision of consumer credit at interest for durable goods and assets is unnecessary. As demonstrated by Singapore’s benefit provision model, the state could engage in consumer credit provision, eliminating practices that bait individuals into financial hazard.

(iii) These changes result in a system where the private sector is directed away from consumer rent-seeking and toward organized capital investment for medium-term returns, fostering greater economic productivity and long-term stability.

(iv) The state an reduce dependency on taxation (indirect) and increase dependency on returns on investment (direct), increasing the accountability of the public sector by creating common interests between the people, industry and state.

Cheers

Reply addressees: @RichardArion1