There are three types of Capitalism.
- True Capitalism
- Laissez-faire Capitalism
- Right Wing Socialism
True Capitalism is operated by strict rules. Laissez-faire Capitalism lets economic activities take their own course without Government interference. Right-Wing Socialism uses Government interference to benefit the Right-Wing Socialists.
There is no such thing as “No rules governing Economics.” 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 an 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, 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 has been very destructive to Man.
This leads into the three types of Capitalism. True Capitalism operates with defined rules and the results are, and have been, prosperity for all who participate.
Laissez-Faire Capitalism operates an economic system without rules and Government interference. The result is failure.
Right Wing Socialism operates an economic system with rich and powerful individuals directing Government interference to their advantage. The result is recessions, depressions and wars.
True Capitalism creates prosperity.
Laissez-Faire Capitalism and Right-Wing Socialism lead to failures. Their activities lead to the redistribution and concentration of the wealth and power of a Nation into the hands of those in power. 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.
- True 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.
- True Capitalism maintains a constant money supply.
- True Capitalism makes sure the people who create the production are paid in full for their production.
- True Capitalism establishes Foundation Social Programs that are funded by taxes. These taxes are levied on the Producers, themselves. 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. They 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; everyone can operate any way they want.
Laissez-faire; a policy or attitude of letting things take their own course without interfering. Laissez-faire 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 big 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 amount possible.
- 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.
- The vast majority of wealth and power rested in the hands of 1/10th of 1% of the U.S citizens.
- This much wealth and power concentrated into the hands of a very small number of individuals slows money velocity (rate at which money changes hands in a Society.) This led to the collapse of the economic system.
Right Wing Socialism
- A small minority, less than 1/10th of 1% of the citizens, takes control of Government and uses Government interference (Programs) to allow them to redistribute and concentrate the wealth of the Nation into their hands.
- Right Wing Socialism is a form of Socialism not a form of Capitalism. This is why it is given the name Right Wing Socialism. 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 themselves. This is Socialism. Any Government Programs funded and administered by Government is Socialism.
- 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 services the least amount possible.
- Right Wing Socialism is operated very similarly to Communist Socialism. The Government interferes in both systems. In both systems, the Government sets policies that redistributes and concentrates the wealth and power of the Nation into the hands of a small number of powerful people who control the Government.
- The result of this system is recessions and depressions. War is also a result because it is another major Government program used to redistribute and concentrate wealth and power into the hands of a few rich and powerful individuals.
Producer Rewarded Open Market Economics
By: RP Obrigewitsch
April 11, 2019