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What is a Capitalist?

Posted by deleted 10 years, 11 months ago to Philosophy
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"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?


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  • Posted by Herb7734 10 years, 11 months ago
    The definition of capitalism, and thus the capitalist changes with the context for which it is used. The primary use of the word capitalism is as an economic system. All other economic systems are either completely or partly controlled by the state. Capitalism is the only economic system in which the means of production are privately held. That means, in its purest form, capitalism is the only system which allows complete freedom to the individual. That allows a capitalist to rise or fall, succeed or fail, through his own effort and ability. Capitalism is one of the key foundations of Objectivism and the only economic system viable for a free society.
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  • Posted by woodlema 10 years, 11 months ago
    Animal really provided the only REAL correct definition.

    " 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.
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    • Posted by XenokRoy 10 years, 11 months ago
      I have always wondered why the founders of the US changed the principle of natural law from "Pursuit of Property" to "Pursuit of happiness" as the original is far more clear than the generalized version that was used.
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      • Posted by woodlema 10 years, 11 months ago
        First, to clarify, Locke's three-fold expression was simply "life, liberty and property". But the "change" to "pursuit of happiness" was NOT something Jefferson himself dreamed up. Rather the idea also went back to Locke's discussion of rights -- and the WORDING in the Declaration of Independence was based on the way this was all expressed a month before that document by George Mason.

        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-......
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        • Posted by XenokRoy 10 years, 11 months ago
          Woodlema,

          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.
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  • Posted by Animal 10 years, 11 months ago
    The flaw in every argument here is that there really is (or, at least, should not be) any -ism in capitalism. 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. There is no governing philosophy required other than the two pillars of a truly free society: Liberty and Property.
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    • Posted by teri-amborn 10 years, 11 months ago
      Very good.
      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".
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    • Posted by XenokRoy 10 years, 11 months ago
      Animal,

      Great definition, but how do you define what Liberty and Property mean in the context in which you have used these words?
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      • Posted by Animal 10 years, 11 months ago
        Liberty: My life is mine, to live as I see fit. The only limits government may legitimately place on my actions is that I cannot cause financial or physical harm to others.

        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."
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  • Posted by strugatsky 10 years, 11 months ago
    Seems that Google is being progressive when it comes to the definition of words (I am shocked!). Other dictionaries define "capitalist" as someone who supports capitalism. One's personal wealth does not enter the definition.
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  • Posted by BrettRocketSci 10 years, 11 months ago
    Hi broskjold22. Since you don't have any answers or comments to your question and article here yet I came to help you out. :-) Or say hello at least.
    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.
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    • Posted by $ allosaur 10 years, 11 months ago
      This evening I'm doing something capitalist. Someone I (trust and) loaned $600 to and has completely paid that back with six $100 monthly visits will now pay an extra $100 in interest as agreed.
      All in cash.
      I'll be sure to report this to the IRS. You betcha. Sure I will.
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  • Posted by ObjectiveAnalyst 10 years, 11 months ago
    Hello broskjold22,
    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.
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  • Posted by $ Olduglycarl 10 years, 11 months ago
    In a sense, all that work and earn money, no matter how or to what extent are investors of sorts. Do we not invest in a future of a company when we support (buy) it's product or service? Those that do not work and take money from the state which gets it money from those that do work also invest Our money in the free market. (By Proxy).
    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.
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  • Posted by $ blarman 10 years, 11 months ago
    Google's definition is - to be quite frank - bunk. Capitalism is the investment of one's own assets in the pursuit of his own goals. Not everyone has money/material wealth in quantity to invest, but everyone has one simple asset: labor.
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  • Posted by bsudell 10 years, 11 months ago
    My understanding is that they changed from "property" to "pursuit of happiness" because of slavery. Slaves were considered "property" so the founding fathers wanted to avoid people thinking that they agreed with slavery.
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  • Posted by Ed75 10 years, 11 months ago
    From the above statement it might be good to define the word "wealth". Here is my suggestion...
    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.
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  • Posted by DrZarkov99 10 years, 11 months ago
    The Google definition, isolating the capitalist as "wealthy" is part of Progressive propaganda promoting class warfare. With the wealthy being demonized, most people shy away from being called a capitalist, which is almost as bad as being called a climate change denier. A capitalist is anyone who engages in the exchange of goods, with the expectation that such exchange is valued by market pressures of supply and demand, and that profit is the just reward for a supplier of goods or services desired.
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