As with most ideologically laden words, "capitalism" has many meanings, especially in the latter sense. What a Marxist or Green would describe as capitalist ideology may seem thoroughly alien to what an advocate of Laissez-faire Liberalism means by the term. Anarcho-capitalism 's definition of "capitalism" is incompatible with the existence of a state, while the view of Conservatism is that capitalism absolutely ''needs'' a state. Even Marx's contention that capitalism is the natural ideology of the class of business owners (i.e. capitalists) is itself controversial. Indeed, Adam Smith looked on the tradesman class with suspicion, and warned that they would engage in attempts to fix prices, gain government monopolies, or attempt to stifle competition.
''Within'' a certain ideology, the meaning of "capitalism" normally remains constant. Thus, for example, all Marxists mean the same thing when they say "capitalism". ''Between'' ideologies, however, the meaning of "capitalism" can vary. When a Libertarian says "capitalism", for instance, he is usually not talking about precisely the same thing as the Marxist who says "capitalism".
There can be great confusion amongst these meanings, and readers must be careful of which meaning a writer intends in any particular usage. The closer a notion of " Capitalism " is to the core of an ideology (either in support or in opposition) the more likely writers within that ideology will have a specific technical definition in mind, which might conflict with other ideologies' definitions of the same term. Therefore, different ideologies that support "capitalism" may not support exactly the same thing, and different ideologies that oppose "capitalism" may not oppose exactly the same thing either.
At least one basic feature of the economic system known as "capitalism" is agreed upon by all ideologies and viewpoints - both those who support and those who oppose it. This basic feature is that . ''Beyond'' this one feature, however, there is no agreement on what ''other'' criteria an economic system needs to meet in order to be considered "capitalism". For this reason, capitalism is often used as a Straw Man or a Shibboleth , to damn or justify almost any imaginable policy choice or social arrangement.
With all the above in mind, this article aims to classify political ideologies according to their relationship with capitalism ''as they define it''.
- , which can be considered a branch of ''' Classical Liberalism ''', defends a capitalist Free Market with minimal state intervention. (See Laissez-faire .) Minarchist libertarians see the role for government in the economy as solely defending the property rights of the participants against violence, theft, fraud, and damages such as pollution.
- sees no role for government whatsoever. They believe that all government functions, including physical security and the adjudication of commercial disputes, will be better achieved by market mechanisms, such as Mercenary Armies and private Arbitration .
- argues that capitalism is a social system based on the protection of individual rights, especially property rights, including the private ownership of resources or capital. It further argues that free markets are created by the Rational actions of free men who act within the bounds of their unalienable, and rationally derived, Rights .
- varies depending between countries in its specific stances. In Western nations, conservatives often defend the ''status quo'' of capitalist practices. These are often called Business Conservatives . Many people who call themselves Politically Conservative , however, prefer a government-regulated capitalism (sometimes called "mercantilism") over free-market capitalism. According to them, free-market capitalism disrupts traditional ways of life and what they often call "family values". Thus, others might classify conservatives as being in favor of a mixed economy.
- . Because of the broad application of the word, not every "liberal" party makes support for unrestricted laissez-faire capitalism part of its ideology. However, most liberal parties over the course of the 20th century, have made the continuance of capitalism a primary objective, and have made Free Trade a centerpiece of their economic programs. In many contexts Liberalism is synonymous with reduction in regulations, trade barriers and state monopolization, and Liberalization is defined as the political and economic process of accomplishing these goals. Again the applicability is context dependent.
- defends a mostly free market within the nation, but proposes state intervention to protect domestic commerce and industries against foreign competition. See also Protectionism , and in opposition, Free Trade , and Crony Capitalism . Business corporations have frequently favored forms of ''mercantilism'', under which the state supports domestic business against foreign interests. Depending on one's definition of capitalism, mercantilism may be seen as entirely capitalist, partially capitalist or even not capitalist at all. However, many capitalist nations engage in mercantilist policies from time to time. Modern Japanese capitalism after World War II might be seen as capitalist mercantilism, while the European Mercantilism of the period before 1600 or so has been seen by some economic historians as being pre-capitalist.
- defends a mostly free market within the nation, but proposes state intervention so as to direct industry into areas of higher priority, or so as to make it more efficient.
- argues for extensive state regulation and partial intervention in an otherwise capitalist economy. Social democrats occupy a position between socialists and classical liberals with regards to economic matters. They see a need for government to regulate employment, trade, and labor, and sometimes favor Nationalization of certain industries. This view is also held by some Liberal Parties , particularly in regard to natural monopolies and Public Good s. See also Welfare State . A prime modern-day example of a social democratic state is Sweden and its neighboring Scandinavian countries, which practice regulated capitalism but provide extensive government benefits for their respective populations.
- desires an economy with private property and with almost all people possessing a means of production. This would take place in for example a country of subsistence farmers. In a distributist economy, laws would be made to restrict large corporations from taking over. Distributists favor achieving these goals not primarily through government regulation, but firstly through grass roots efforts and collaboration.
- is a Third-way economic and political system in which legislative power is given to civic assemblies that represent economic, industrial, agrarian, and professional groups. Unlike pluralism, in which many groups must compete for control of the state, in corporatism, certain unelected bodies take a critical role in the decision-making process. These corporatist assemblies are not the same as contemporary business corporations or incorporated groups. Corporatism was adopted as the basis for some Fascist economic thought, especially in Mussolini 's Italy.
- argues for public control of the economy, under a more extensive kind of democracy than is usually seen in capitalism. Areas of private ownership may remain in certain sectors (such as Small Business es) under socialism, but most economic sectors are run by the state for the benefit of the populace at large. In particular, the state is to control the "commanding heights" of the economy, such as the banking system and the major industries.
- goes further in the direction of government and/or social control of production, and calls for the overthrow, democratically or by revolution, of the capitalist system and the establishment of Public Ownership of the Means Of Production . Communists advocate socialism, but only as the first stage towards the establishment of a stateless and classless economy.
- argues for collective control of the economy without the need for a State .
- strives for the immediate abolition of both the state and private property, and the establishment of a communal society quite similar to the one advocated by communists as their final goal (but in contrast to the communists, anarchists oppose the idea of a transitional socialist stage).
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