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Life On Purpose - By Xenia's avatar

This is a great definition of what capitalism means

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Benny Goodman's avatar

You’ve written in defence of capitalism, leaning on Ayn Rand’s *Capitalism: The Unknown Ideal*. Fair enough — we’ve all got our influences. But the essay reads less like an analysis and more like a brochure for “Capitalism World,” a theme park where the rides never break down, the chips are always hot, and everyone goes home smiling. Let me take your argument, paragraph by paragraph, and explain why it doesn’t hold up.

The Definition Game

You start by saying capitalism isn’t cronyism, state-capitalism, or today’s messy economies. No — yours is pure, pristine, unicorn-grade capitalism. Trouble is, that version has never existed. Historically, capitalism has always been propped up by the state: enclosure of land, colonial expansion, subsidies, and military muscle. Mariana Mazzucato shows the state is the engine of innovation, not some meddling uncle at the feast. Your “real capitalism” is an immaculate conception — very convenient, because it can never be sullied by actual history.

Property, Liberty, Life

You equate property with liberty. If I own my house, my tools, and my bright ideas, I’m free. But property is not a divine right; it’s a social contract backed by force. Try squatting in someone’s “private property” and see how quickly the police arrive. Erich Fromm nailed it: capitalism gives us “freedom from” interference, but rarely “freedom to” realise our potential. People may formally “own” things, but they’re still chained to debt, low wages, and jobs that drain the soul faster than a tax inspector in January.

The Bakery Without Permits

You wheel out a cheery baker who just wants to open shop without pesky permits. Lovely image. Except history tells us unregulated food industries poisoned milk, stretched bread with chalk, and locked children in flour mills. Those “endless fees” are usually fire codes, hygiene standards, and labour protections — you know, the boring stuff that stops your croissant coming with a side order of typhoid.

Government as Night-Watchman

Your government does nothing but police, prisons, the military, and courts. A sort of bouncer with a nightstick. Sounds neat until you face climate change, pandemics, or financial crashes. Try taking ExxonMobil to court single-handedly for global warming. Rand’s night-watchman state would be asleep in the chair while the house burned down.

Contracts and Power

You say contracts are fine unless they violate rights. Noble sentiment. But who defines rights? In reality, it’s the powerful. A “free” contract between Amazon and a zero-hours worker is about as free as a fox negotiating with the farmer. Consent in unequal conditions isn’t freedom — it’s coercion in a suit and tie.

No Taxes, Just Voluntarism

Here’s the utopian bit: no taxes. Schools, science, and libraries are funded by voluntary donations, raffles, and good vibes. I admire the optimism, but history suggests otherwise. Nobody volunteers to build sewage systems or universal healthcare at scale. Without taxation, you don’t get freedom; you get potholes, cholera, and billionaires with bigger yachts.

The Capitalist Daydream

This is where you really go full Disneyland. Everyone owns their home, food is dirt cheap, roads are perfect, and jobs are deeply fulfilling. Even a modest income buys abundance. Honestly, it reads like an Ikea catalogue written by Walt Disney after a heavy night on the gin. Real capitalism looks different: unaffordable housing, wage stagnation, and inequality so baked in it makes sourdough blush. Graham Scambler calls it the “class/command dynamic” — a polite way of saying the rich call the shots while the rest of us make do.

The Unknown Ideal

Finally, you retreat to Rand’s favourite hiding place: true capitalism has never existed. This is the theological move. Every failure — sweatshops, child labour, the 2008 crash — can be brushed aside as “not the real thing.” That’s not analysis; it’s capitalism as religion, complete with saints, sinners, and a paradise deferred.

The Human Self Problem

Underneath all this is your faith in the liberal human self: a rational, free, sovereign chooser. Trouble is, neuroscience (Robert Sapolsky) shows free will is an illusion. Our choices are shaped by genes, hormones, and environment. Sociology piles on: class, race, and gender shape our lives long before we “choose” anything. The Randian self — master of its fate — is a nice bedtime story, but reality is messier.

Your essay is tidy, hopeful, and utopian. But it’s a fantasy. What you call “freedom” is really the freedom of the powerful to dominate. If you want a humane society, you don’t get it through Rand’s unicorn. You get it through solidarity, collective provision, and a recognition that we’re all tangled up in one another’s lives — whether we like it or not.

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