On this Liberty-minded episode,Nick and Matt switch things up a bit and discuss Capitalism. The guys go over broad definitions, the history, and common objections. Follow along with the blog below or at http://skyclothmedia.com/Capitalism for helpful definitions and links. Subscribe to Politically IncorWRECKED™ on your platform of choice, and leave us a five-star rating please!
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Definitions and Links
Merriam Webster Definition of Capitalism: an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.
Mises Institute: Capitalism
Merriam Webster Definition of Socialism: A system of society or group living in which there is no private property and the means of production are owned and controlled by the state.
Private vs Corporate Ownership: Ownership of goods, property, or business by non-government organizations or a relatively small number of shareholders is categorized as private. Any involvement or ownership by the government, or by government-subsidized groups is categorized as corporate.
Consumer Goods: Consumer goods are products that are purchased for consumption by the average consumer. Alternatively called final goods, consumer goods are the end result of production and manufacturing and are what a consumer will see on the store shelf. Clothing, food and jewelry are all examples of consumer goods. Basic materials such as copper are not considered consumer goods because they must be transformed into usable products.
Capital Goods: Capital goods are tangible assets such as buildings, machinery, equipment, vehicles, and tools that an organization uses to produce goods or services in order to produce consumer goods, and goods for other businesses. Manufacturers of automobiles, aircraft, and machinery fall within the capital goods sector because their products are used by companies involved in manufacturing, shipping and providing other services.
Commodities: A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type; commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers. When they are traded on an exchange, commodities must also meet specified minimum standards.
Production: The process of workers combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption. It is the act of creating a good or service which has value and contributes to the value of individuals.
Distribution: The way total output, income, or wealth is distributed among individuals, or among the factors of production (such as labour, land, and capital).
Economies of Scale: The cost advantage that arises with increased output of a product. These arise because of the inverse relationship between the quantity produced and the fixed costs of each product; i.e. the greater the quantity of a good produced, the lower the fixed cost, because these costs are spread out over a larger number of goods.
Laissez-Faire: (French: “allow to do”) A policy of minimum governmental interference in the economic affairs of individuals and society.
Free Market: All voluntary exchanges that take place in a given economic environment. Free markets are characterized by a spontaneous and decentralized order of arrangements through which individuals make consensual economic decisions. Based on its political and legal rules, a country’s free market economy may range between very large or entirely black market.
Market Planning: The process of analyzing one or more potentially interesting marketplaces in order to determine how an individual or business can optimally compete in them.
Centrally-Planned Economies: An economic system in which the state or government makes economic decisions rather than the interaction between consumers and businesses. Unlike a free-market economy in which private citizens and business owners make production decisions, a centrally planned economy controls what is produced and the distribution and use of resources. State-owned enterprises undertake the production of goods and services.
Mixed Economies: An economic system that features characteristics of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.
Anarcho-Capitalism: political philosophy that advocates the elimination of the state in favor of individual sovereignty in a free market. Economist Murray Rothbard is credited with coining the term. In an anarcho-capitalist society, law enforcement, courts, and all other security services would be provided by voluntarily-funded competitors such as private defense agencies rather than through taxation, and money would be privately and competitively provided in an open market.