Commentary
The term capitalism lacks a consistent definition and should perhaps be retired altogether. Nevertheless, its use persists due to vested interests and misuse.
I have ceased attempting to impose my definition on others, as I see disputes over vocabulary as a distraction from the substantial debates on concepts and ideals.
However, for the sake of discussion, let’s imagine a stable definition of a capitalist economy. Let’s define it as a system of voluntary and contractual exchange of disputable and privately owned property titles that allows for capital accumulation, rejects central planning, and favors social processes over state control.
It ideally represents an economic system based on consent.
This is an idealized concept. In practice, it is intertwined with freedom and opposes state planning, favoritism, and unequal privileges. How do current systems align with this ideal? In numerous ways, our economic structures fall short, leading to expected consequences.
Below is a brief list of ways in which the U.S. system deviates from an ideal capitalist marketplace.
1. Tech and media platforms have become major clients of governments, promoting political compliance and censorship. Despite their origins as disruptors with a libertarian ethos, they now serve state agendas, stifling dissent and spreading propaganda.
2. A medical cartel in the U.S. collaborates with regulators to push harmful substances, inflate prices, and discourage alternatives, fostering addiction and poor health.
3. The U.S. education system, largely government-funded, restricts competition, mandates participation, wastes time, and enforces political conformity.
4. Agricultural subsidies create large industries that stifle small farms, control regulators, and distribute unhealthy food to the public.
Small farms are struggling to stay afloat due to compliance costs and investigations, leading to a fear of government intervention even among sellers of raw milk. The agricultural industry is becoming increasingly consolidated, reliant on patented pharmaceuticals, insecticides, and fertilizers that harm public health. This consolidation, along with complex and punitive taxation systems, hinders social mobility and wealth accumulation, creating a form of commercial and industrial servitude.
The introduction of fiat paper money and floating exchange rates has given governments unlimited funds, leading to inflation and devalued currencies. This system benefits politicians and totalitarians, allowing for endless bailouts and financial manipulations. The financialization of the economy has shifted focus away from industrial production, leading to a decline in U.S. industries.
The court system fosters extortionate litigation, forcing businesses, especially small ones, to live in constant fear of legal action. This environment has normalized diversity, equity, and inclusion (DEI) hiring standards out of fear of bankruptcy. The patent system grants private industry production cartels, stifling competition in various sectors.
The commodification of ideas through intellectual property rights limits innovation, restricts competition, and benefits monopolists. This system hinders progress and learning, creating barriers to economic development. The capture of pro-capitalist thinkers by patent theory represents a significant historical breach.
Authentic Property Rights Weakened
Property rights are now weaker than ever, easily overridden or abolished with a simple stroke of a pen. Landlords can’t evict tenants, and small businesses can’t operate freely. This was once common in despotic governments of poorer countries, but now it’s prevalent in the industrialized West. Business owners can’t be sure of their rights to their own enterprises, all due to the devastating consequences of COVID lockdowns. Economic freedom indexes have yet to adapt to this new reality, showing the serious impact of public health authorities having the power to shut down businesses at will.
Bloated Federal Budget and Regulatory Burden
The bloated federal budget supports over 420 agencies that heavily regulate commercial society, increasing compliance costs for entrepreneurs and creating uncertainty about the rules of the game. Deregulation attempts fall short of fixing the core problem, with virtually every product or service in the U.S. being subject to some form of regulatory control. Any new disruptive innovation, like cryptocurrency, is crushed until only compliant firms remain, serving the interests of the incumbent financial industry.
The commercial freedom in the U.S. is under siege by state power, often with the cooperation of dominant industry players. This new form of surveillance-based despotism rewards businesses aligned with state power and punishes those that resist. It’s a system that defies easy classification in the 21st century, resembling aspects of corporatism, fascism, and a digital surveillance state.
Opinions expressed in this article are solely those of the author and do not represent The Epoch Times.
