What is a Capitalist?
Posted by deleted 10 years, 11 months ago to Philosophy
"Capitalist" is used in different contexts to meet definitions of the exact opposite criteria. Where is the contradiction? Let's break down the definition provided compliments of Google and see what we find. Per Google, a capitalist is "a wealthy person who uses money to invest in trade and industry for profit in accordance with the principles of capitalism" (here siting Google). In one sense, it is correct, common sense dictates a capitalist must be a proponent a capitalism. Moreso, the capitalist must "invest and trade in industry for profit". But must the capitalist be "wealthy" and "use money" for this purpose? If so, Rand would not have been considered a capitalist. She would have been considered an "advocate of capitalism". I too would be considered an "advocate of capitalism". I do not have the wealth of J P Morgan, or Andrew Carnegie, or Steven A Cohen, or Elon Musk. Relative to them, I have much less wealth, or - at least - capital with which to practice capitalism. So it would seem. But, if I advocate individual rights, then logic dictates I advocate the right to life, from which follows the right to keep what I produce. Of course, we cannot imagine that a self respecting capitalist would not also agree with such tenets, whether implicitly or explicitly. But all of us now who have 401 plans use our money to invest. And it's no small "chunk of change", I imagine.
Thus, if I am tied to the "Google standard" definition, it must be that I am not wealthy by some standard, and that that standard renders me separate from those giants who would be titled as such. This is a double-edged sword. Each person of greater wealth imagines the true capitalist is much greater than he, or - in the case of our current and ridiculous culture - much less (i.e. an Occupier's feeling about the world). Continuing on: each person who puts money to use to accrue capital, would be a capitalist. Thus anyone with a 401k is a capitalist. From that standard then, each person who DOESN'T, simply isn't a capitalist. That is the divide Marx set out to propose in his book Capital. Of course, basic subsistence is a lamentable state. But even a person who by definition spends his earnings daily (i.e. the proletariat) has the power to accrue property for that exact length of time. He can, for example, go without meat in order to save for coat. He can, for example, go without a smart phone payment in order to save for a car. He can, for example, go without a formal education to work on his fortune, and to invest his capital accordingly. So what of Marx's claim, or Google's definition of wealth?
Is wealth possible to those who have nothing? Yes, it is 100% possible. Is wealth possible to those who do not receive free education, free food, free water, or free wages (minimum wage)? Of course, per the previous answer. Wealth is not a given to any individual, who must use his mind to produce. We are not in an oligarchical hell that Bernie Sanders describes.
Productive minds (i.e. capitalists) use money as a tool to translate the image of their values into the physical world. That is a better definition of "capitalist" than Google's, in my humblest opinion. Then, anyone might ask, how is it that our incomes are taxed, that our streets are crumbling, that buildings are closed, that stock markets crash so profoundly? Are we the victims of market stagnation, where capital doesn't move and the life force of the economy runs dry?
Who is John Galt?
Thus, if I am tied to the "Google standard" definition, it must be that I am not wealthy by some standard, and that that standard renders me separate from those giants who would be titled as such. This is a double-edged sword. Each person of greater wealth imagines the true capitalist is much greater than he, or - in the case of our current and ridiculous culture - much less (i.e. an Occupier's feeling about the world). Continuing on: each person who puts money to use to accrue capital, would be a capitalist. Thus anyone with a 401k is a capitalist. From that standard then, each person who DOESN'T, simply isn't a capitalist. That is the divide Marx set out to propose in his book Capital. Of course, basic subsistence is a lamentable state. But even a person who by definition spends his earnings daily (i.e. the proletariat) has the power to accrue property for that exact length of time. He can, for example, go without meat in order to save for coat. He can, for example, go without a smart phone payment in order to save for a car. He can, for example, go without a formal education to work on his fortune, and to invest his capital accordingly. So what of Marx's claim, or Google's definition of wealth?
Is wealth possible to those who have nothing? Yes, it is 100% possible. Is wealth possible to those who do not receive free education, free food, free water, or free wages (minimum wage)? Of course, per the previous answer. Wealth is not a given to any individual, who must use his mind to produce. We are not in an oligarchical hell that Bernie Sanders describes.
Productive minds (i.e. capitalists) use money as a tool to translate the image of their values into the physical world. That is a better definition of "capitalist" than Google's, in my humblest opinion. Then, anyone might ask, how is it that our incomes are taxed, that our streets are crumbling, that buildings are closed, that stock markets crash so profoundly? Are we the victims of market stagnation, where capital doesn't move and the life force of the economy runs dry?
Who is John Galt?
" In an ideally free, laissez-faire market, "capitalism" is nothing more than free people making their own economic decisions, in accordance with their own best interests, unfettered by any external authority"
The problem is that people have this innate desire to control others via some means which is rarely the free trade between individuals of value for value.
Usury laws are a violation of real Capitalism. If I want to charge 600% interest, and your willing to pay it because my loan provides you a value you want and cannot get anyplace else, the so be it. Just because you may have miscalculated or did not think it through means nothing.
People cry and whine about banking and loans, but how often do they even bother reading the documentation? I have always told people NOBODY ties you up, drags you into a bank, forces you on your knees, sticks a gun to the back of you head and forces you to sign mortgage papers so YOU can live in a McMansion you cannot afford.
Under TRUE Capitalism, as this country was established, you are Free to "PURSUE" happiness, but there is no guarantee of it. You are perfectly free to succeed just as you are free to fail and suffer from your own bad decisions.
These "safety nets" are complete BS, and in direct conflict with any definition of real true Capitalism.
Part of the solution is to clarify what these terms MEANT to Locke and the founding fathers -- neither the mention of "property" nor of "happiness" means quite what WE tend to think.
By "property," Locke meant MORE than land and goods that could be sold, given away, or even confiscated by the government under certain circumstances. Property also referred to ownership of one's self, which included A RIGHT TO PERSONAL WELL BEING. Jefferson, however, substituted the phrase, "pursuit of happiness," which Locke and others had used to describe FREEDOM OF OPPORTUNITY as well as the duty to help those in want.
http://www.crf-usa.org/Foundation_doc......
Perhaps the easiest way to see this connection is to look at the very first paragraph of the "Virginia Declaration of Rights" written by George Mason in 1776, JUST BEFORE the Declaration of Independence. Note how his list pulls together "property" and "pursuit of happiness" --
"That all men are by nature equally free and independent, and have certain inherent rights, of which, when they enter into a state of society, they cannot, by any compact, deprive or divest their posterity; namely, the enjoyment of life and liberty, with the means of acquiring and possessing property, and pursuing and obtaining happiness and safety."
http://odur.let.rug.nl/%7Eusa/D/1776-......
Thanks a great deal. I have read Locke extensively and looked for why the change. The statement from the Virginia Declaration of Rights is wonderful and bridges a gap I have tried to fill on and off for some years. I would not have thought to look at it.
Very much appreciated.
Edit: the link to the Virgina declaration of rights was broken. I went to; https://en.wikipedia.org/wiki/Virgini... to read a bit more.
To go a bit deeper I would define a capitalist as a person who uses his time, energy, mind and will to make more of what is available to him from the earth's resources or from what others have subdued and extracted from the earth.
That is why "environmentalism" is the opposite of "capitalism".
Great definition, but how do you define what Liberty and Property mean in the context in which you have used these words?
Property: The fruits of my creativity and my efforts are mine, to dispose as I see fit. Government may legitimately tax me for certain distributed interests such as national defense, but it is not the role of government to confiscate a portion of my property to protect others from the consequences of their own poor decisions.
Or, to put it more pithily:
"I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for mine."
Thanks,
XR
The Google definition has a flaw with the "wealthy" qualifier, as you also pointed out. Plenty of entrepreneurs and business people are capitalists when they are early in their careers or ventures. Before they create their wealth.
I looked in my handy Ayn Rand Lexicon and there are large sections for capitalism and businessmen. No entry for capitalist. So thinking a little for myself (always nice), I would say a capitalist is someone who understands and honors the principles of capitalism in his/her philosophy as well as actions. To the extent they have that ability, which of course is going to be different for everyone. Differences from personal abilities, upbringing, and external factors. It's very hard to be a consistent and successful capitalist when you are living in a society that doesn't respect individual rights in multiple ways. But it is still possible to succeed! And the more successful capitalists we have (especially in this community) the better off we will all be. Whether we remain to stay and lead the charge or go on strike and start over somewhere else.
All in cash.
I'll be sure to report this to the IRS. You betcha. Sure I will.
I agree with others here in that this definition is progressive nonsense. A capitalist is one that promotes capitalism as a moral system of trade among others and uses whatever "capital" they have, even if it is only labor or knowledge, to further enrich their lives and fulfill needs and desires. One's individual level of wealth is irrelevant.
Regards,
O.A.
To answer the last question (last par) I would say that up until the advent of 'Kick starter like programs' we were to a degree victims of market stagnation. But the right product or service for those times would likely get funded, I think history has shown us some examples otherwise we would have never recovered.
My kinda people
When a person, by their own effort, produces any surplus over what they need for sustaining themselves, that surplus is their "wealth". The size of it is not the relevant measure.