There are three types of Capitalism.
The three types of Capitalism are:
- Pure Capitalism
- Laissez-faire Capitalism
- Right Wing Socialism
Pure Capitalism discussed in the Three Types of Capitalism article is operated by strict rules. Laissez-faire Capitalism lets things take their own course without interference. Right Wing Socialism is similar to Laissez-faire Capitalism with the exception; they bring in Government interference to benefit the Right Wing Socialists.
There is no such thing as “no rules governing Economics.” There is only one way to have, “no rules governing Economics.” The way to have no rules in Economics is to have no human beings or other forms of life living on planet earth.
As long as we have one human being and other forms of life living on the planet there will be rules governing Economics. These rules will be created between that one person and the other forms of life. These rules are based on how this individual lives, works and interacts with other life forms while achieving existence and prosperity. This individual must at the very least follow rules of exchange with his environment. Example, when and individual employs the use of animals as labor or companionship he maintains an exchange with them. He feeds them and cares for them. They provide him labor and companionship.
There are always rules of interaction between people producing and exchanging commodities, trades, goods and services. There are always rules of exchange between the producing people and their environments. Without rules there is no existence or prosperity possible.
The History of Economics proves this out. In the past and into present time, there has been a tendency to operate an economic system without rules. This would be a free-for-all system.
This system of operating an Economic System without rules has always resulted in recessions, depressions and wars. This system of operation has been very destructive to Mankind.
This leads into the three types of Capitalism. Pure Capitalism operates with much defined rules and the results are and have been prosperity for all who participate.
Laissez-Faire Capitalism is, by its very nature, an attempt to operate an economic system without rules. The result is always failure.
Right Wing Socialism operates like Laissez-Faire Capitalism with the rich and powerful individuals controlling the Government to their advantage. The result is also always recessions, depressions and wars.
Pure Capitalism creates prosperity.
Laissez-Faire Capitalism and Right Wing Socialism lead to failures. Redistributing and concentrating the wealth of a Nation into the hands of a few rich and powerful individuals will always lead to an economic failure for that Nation.
Pure Capitalism is operated by strict rules. It is similar to Producer Rewarded Open Market Economics.
- Pure Capitalism has a Free Market that is Open to all people on equal terms. The Free Market is open to those individuals who create the commodities, trades, goods and services. The producing individuals bring their products to the Free Market and exchange them for money.
- Pure Capitalism maintains a constant money supply.
- Pure Capitalism makes sure the people who create the production are paid in full for their production.
- Pure Capitalism establishes Foundation Social Programs that are funded by taxes. These taxes are levied on the people, themselves, who create all the commodities, trades, goods and services. The programs are established for the construction of roads, bridges, dams, flood control, irrigation, policing, fire control, education, healthcare, harbors, airports, water and sewage treatment, mass transit, etc. These programs are paid for by the Producers. These programs aid the Producers in their production efforts and enterprises.
- The result is prosperity for the vast majority of citizens.
Laissez-faire Capitalism operates with the absence of rules. There is one exception. The exception is a rule where; everyone can operate any way they want.
Laissez-faire; a policy or attitude of letting things take their own course without interfering. Economics: abstention by governments from interfering in the workings of the free market. Oxford American Dictionary.
- The Market becomes a free-for-all Market.
- Monopolies are a part of Laissez-faire Capitalism.
- In Laissez-faire Capitalism the Producers (the people who create the commodities, trades, goods and services) are paid the least
possible that the owners can get by with.
- The money supply is not held constant. There are no rules governing Banking. Banks can expand the money supply at will.
- The money, value, energy, wealth, capital and power are concentrated into the hands of the owners. The Producers (workers) who create all the money, value, energy, wealth, capital and power receive very little in return.
- The results of this system are recessions and depressions.
- The Great Depression, 1929 to 1941, resulted from a Laissez-Faire Capitalist system of economics.
- The vast majority of money, value, energy, wealth, capital and power rested in the hands of 1/10th of 1% of the U.S citizens.
- Massive amounts of money, value, energy, wealth, capital and power had been controlled by a very small number of individuals. This much money, value, energy, wealth, capital and power concentrated into the hands of a very small number of individuals caused the money velocity in the U.S. to grow slower and slower. This led to the collapse of the economic system.
Right Wing Socialism
Right Wing Socialism operates much like Laissez-Faire Capitalism.
- The major difference is: a small minority, less than 1/10th of 1% of the citizens, takes control of Government and sets up Government programs that allow them to redistribute and concentrate the wealth of the Nation into their hands.
- Laissez-faire Capitalism doesn’t have any rules. The government stays out of the economic system or has a very minimum involvement with it. There are no rules of operation. There are no government programs, either, to benefit the wealthy or to benefit the Producers (Worker/Laborers.)
- Right Wing Socialism is more like a form of Socialism. That is why it is given the name Right Wing Socialism. It really is not a form of Capitalism. They call themselves Capitalists. That is why I placed them in this article as a form of Capitalism. They carry out Government programs that benefit them like Socialists.
- In Right Wing Socialism there are rules and government programs that benefit the wealthy people. The Government is involved in the economic system for the benefit of the Right Wing Socialists.
- The Money supply is not held constant.
- In Right Wing Socialism, the owners pay those who produce the commodities, trades, goods and service the least amount possible.
- Right Wing Socialism is operated very similarly to Communist Socialism. The Government is involved in both systems. In both systems the Government sets policies that redistributes and concentrates the money, value, energy, wealth, capital and power into the hands of the powerful people who control the Government.
- The result of this system is also recessions and depressions. War is also a result because it is another major Government program used to redistribute and concentrate money, value, energy, wealth, capital and power into the hands of a few rich and powerful individuals.
Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
February 8, 2017