Topic: Economics
Socialism and Capitalism Endless confusion has resulted from the re-definition of the terms "socialism" and "capitalism".by Dan Clore
(libertarian)
Tuesday, July 15, 2008
Socialism and Capitalism
by Dan Clore
One must be careful to make one's intended meaning known when using the terms "socialism" and "capitalism" (as well as related terms) because they have undergone polemic re-definition over the decades that can cause a great deal of confusion.
In the traditional sense, "capitalism" means the ownership and control of the means of production by a class of "capitalists" (in the traditional sense, the owners of capital, or means of production used by workers other than the capitalists/owners themselves) and an economic and political system that favors this.
In the traditional sense, "socialism" means the ownership and control of the means of production by the workers themselves, whether as individuals, cooperatives, collectives, communal groups, or through the state, and an economic and political system that favors this. One should note that this does not necessarily mean by the people as a whole, nor does it necessarily mean state ownership, nor does it necessarily imply a non-market form of organization; historically, anarcho-individualism (e.g., in the free-market form advocated by Benjamin Tucker) has been an important form of socialism.
In the later re-definition, "capitalism" means the private (non-government) ownership of the means of production, and more generally the absence of central planning by the state.
In the later re-definition, "socialism" means the ownership and control of the means of production by the people as a whole, generally by means of the state, or simply the ownership and control of the means of production by the state, or more broadly any form of central planning by the state.
Matters have become especially confused because these terms have been used in ways that include both the traditional sense and the later re-definition of the terms. Thus, Marxist-Leninists will define "socialism" in the traditional sense, but at the same time refer to examples of "socialism" in the later re-definition, in order to gain support for totalitarian Bolshevik regimes that actually destroy any examples of "socialism" in the traditional sense. Likewise, their "capitalist" opponents will do the same, in order to support the belief that There Is No Alternative (TINA) to "capitalism" other than a tyrannic despotism. (In this connection, one should note that according to Marx and Engels, the "dictatorship of the proletariat" is a transitional stage between capitalism and socialism/communism, which will not exist until the state has withered away to nothing.)
In the same way, advocates of "capitalism" will define the term with the later re-definition, but actually refer to concrete examples that instead fit the original sense, even citing dictatorships such as Pinochet's in Chile as positive examples. And just as with "socialism", some opponents of "capitalism" will do likewise in order to discredit it in the sense of the later re-definition. At present, state-corporate globalization, in which there is rule by states, corporations, international financial institutions (IFIs), and the like, is the typical form of "capitalism" actually advocated by most avowed capitalists, rather than a truly free market. This effectively means that there are (at the least) three common usages of the terms "socialism" and "capitalism", and so it behoves one to make clear in what sense one is using these and related terms, and to what empirical examples one refers.
One should also note the term "state-capitalism", used by socialists (in the traditional sense) to refer to state ownership and control of the means of production in varying degrees ranging from capitalist dictatorships such as Pinochet's through to Marxist-Leninist dictatorships such as the Bolshevik regimes. This extends the traditional sense of "capitalism", as the state (at least partially) replaces the traditional "private" capitalist class to varying degrees.
The views expressed in this
article are those of Dan Clore only and do not represent
the views of Nolan Chart, LLC or its affiliates. Dan Clore is
solely responsible for the contents of this article and is not an
employee or otherwise affiliated with Nolan Chart, LLC in his/her role as a columnist.
Dan it's a great piece, but my simple mind says being a Capitalist, is generally one who believes in private investment, ownership, and production as a free enterprise and the system is Capitalism. A Socialist, is generally one who believes in Public or community investments, ownership, and production as a member thereof, and the system is Socialism, one small step from Communism
Not more comments? You just elucidated what I have thought to be true for a long time! Bravo! As always, memetic engineering is just as crucial to understand as any other instrument of debate. In this case, the way we redefine words has caused arguments to take place on false causes.
I myself have long argued that socialism is not this nightmarish system that many hardcore libertarians decry it to be, the only distinction being that there is no element of "capital" in socialism. And you articulated it quite well. Again, splendid job.
I'm just curious if anyone can tell me why this article is so popular. It's by far the most popular of my own columns, getting many more hits than any other. And as I write, it's the most visited column on Nolan Chart for the past two days.
I do think that I did a good job explaining something that needs to be explained, to clear up popular misconceptions.
But I've written other columns that I think deserve as much attention as this one.
While there may be technical differences between these "isms", I don't think people want to go there mentally. They might not think it matters much.
On another site a "progressive" was explaining a tea party event he attended and saw a sign "No to socialism" which angered him. He asked the woman "do you even know what socialism is" ? The woman replied "No! And I don't want to know". Which angered him more. He wanted to choke her. She was "stupid".
I think most people know socialism means shared work and shared wealth, seen over by some group. Most people in this country do not believe in that. They know instinctively that this system ends up corrupted and eventually fewer and fewer people do the work for the shared wealth. The cadre at the top do fine, the rest of the people share the misery.
As that russian worker once said "they pretend to pay us, and we pretend to work".
Yes I know that was Communism.....it holds true for the other socialism. IMO.
Socialism does not mean shared work and wealth overseen by "some group" unless its run by the state, which isnt much different than working for someone else, having no say in the decisions that effect your life and being subject to economic coercian.Whether the rule makers are a small group of rich people or a government or a government controlled by a small group of rich people makes little difference to me.Anarchist socialism can manifest in as many different forms as the people involved set about to organizing themselves."Shared wealth" is also misleading, giving people the idea that there is no personal property,which is untrue.You can have a town library and still own your own books.If I'm working in a collective company and my fellow work associates and I decide to create a healthcare package for ourselves we actually have more say on the nature of that package than if I'm waiting for or demanding a handout from a privately owned business.The difference between anarchist socialism and capitalism is that everybody gets to work for themselves in as much as they have more of a say in the decisions that effect their lives while being a part of, rather than subjected to, economics.Perhaps a new word like free market socialism is in order.Another difference is that under capitalism hoarding excessively is often considered necessary and encouraged even though it contributes to an unhealthy social and political atmosphere and while I've heard every reason and excuse in the book as to why this is a good and just darwinian way to do things I've never understood why creating an envirenment that encourages using the excess created in one area to help other areas prosper, which would benefit us all, in the long run, is such a bad thing.I guess if your goal is to impoversh more than 1/2 the world so you can better take advantage of them then maybe it is a bad thing.Also, when profit is the only motive worth speaking of we tend to end up with lots of cheap and useless "stuff" and brilliant minds end up being funneled towards whatever is profitable at the time, rather than letting free and creative association determine one's creative future-unless your rich or are good at begging from the rich,which essentually capitalism does to the vast majority of people in the world,makes beggars of them.I'd like to live in a world where my education as well as libraries and other non-profit commons can be obtained without begging some rich foundation or asking for government welfare, secure in my knowledge that my labor and other contributions are worth more than the crumbs we currently compete for.Another myth I'd like to dispell is the myth that one can't operate independantly,you can be an independant artisan or whatever of any kind if you'd like, however if your goal is to own a piece of land the size of texas and make wage slaves of the people that live on that land you may find that what you call freedom and what they call freedom are two different things.
Posted By: Paul Benedict
Date: 2010-01-08 10:16:41
A great article. I cringe every time I hear Rush or Hannity espouse the wonders of capitalism. They mean the free market, but when they use the Marxist term "capitalism" they walk right into a hail storm of hot steel.
JAK and others: Pardon me for my stating FACTS and not my opinion. Having lived through 'the Depression', WW11, and everything after, second generation American, may I say we can do without all you smart alecks with your semantics ,theories, and biases.My grandparents did not come over on the Mayflower but as dirt poor immigrants seeking a life with at least opportunity not available in 'the old country' They suffered REAL discrimination, and hardship for many years. However it was the sacrifices of those people who made it possible for today's cry babies, beginning with the Woodstock Generation of rabble to have the 'right' to tear down the country in the name of some 'freedom' or other. You who fancy yourselves 'intellectuals' who must 'educate' the rest of us ...from politics, to 'isms', to creating a 'movement' for the purpose of educating the masses in proper eating habits...ostensibly to protect our kids from 'THE SINGLE GREATEST THREAT TO THEIR FUTURE'!!, [we] understand the difference between socialism, communism, capitalism, and we are aware that it was capitalism which created the best [although not without flaws] system ever devised. So why don't you take your theories and your comrades and get on a slow [leaky] boat to hell. Grandmother in PA
JAK and others: Pardon me for my stating FACTS and not my opinion. Having lived through 'the Depression', WW11, and everything after, second generation American, may I say we can do without all you smart alecks with your semantics ,theories, and biases.My grandparents did not come over on the Mayflower but as dirt poor immigrants seeking a life with at least opportunity not available in 'the old country' They suffered REAL discrimination, and hardship for many years. However it was the sacrifices of those people who made it possible for today's cry babies, beginning with the Woodstock Generation of rabble to have the 'right' to tear down the country in the name of some 'freedom' or other. You who fancy yourselves 'intellectuals' who must 'educate' the rest of us ...from politics, to 'isms', to creating a 'movement' for the purpose of educating the masses in proper eating habits...ostensibly to protect our kids from 'THE SINGLE GREATEST THREAT TO THEIR FUTURE'!!, [we] understand the difference between socialism, communism, capitalism, and we are aware that it was capitalism which created the best [although not without flaws] system ever devised. So why don't you take your theories and your comrades and get on a slow [leaky] boat to hell. Grandmother in PA
You do an excellent job of pointing out the need to define these terms before they are thrown around accusing people of one thing or another, and defending systems they in truth don't want to defend. I believe in a truly free market, going beyond a capitalist system and where every individual is free to make their own economic decisions without impediment from other individuals or organizations. Such a free market system is closer to "socialism", the system where power is in the hands of the workers, than the many attempts at socialism that have taken place during the last century. Both concepts, however, do not describe individual liberty as strongly as a truly free market.
wow, simply amazing. I think you nailed it, great article.
People cringe at the mention of socialism, and in my experience, they have little to no clue what it is, they think they do, but really its the same old B.S. being spewed on tv and movies.
Amelia, you have stated very little facts, more so an observation. American immigrants were not the only ones to struggle, and it's kind of funny that they did struggle under a system that you defend and call the best. Being able to clearly define the 'isms' and understand the history on these systems is a great thing. I believe humanity should be well educated and articulate as so we can see things more clearly and be free. I believe all systems work and all are flawed equally. I personally do not like when a definition gets distorted or transvalued. I am sick of people who ignorantly regard socialism and capitalism. Let's just say it requires much thought when discussed. And for anyone else out there who wants to send scholars, intellectuals and thinkers to hell, I pity you.
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