Monday, May 17, 2010



"Capitalism" and "Capitalist" as terms, were popularized by Collectivist German Political Theorist, Political Economist, and Sociologist, Karl Marx as pejoratives demonizing the "Haves" in his secular prophecy; a dichotomous and inevitable struggle with the "Have Nots". 
In Real Economics, Capitalism is synonymous with a "Free Market"; that is free from interference except to establish voluntary market conditions which necessarily exclude both "Positive Rights" and "Caste Systems".

Laissez Faire: From the phrase "laissez faire et laissez passer": Literally 'Let do and let pass'  Substantively "let (people) do (as they think best); chosen to express the ideal of government non-interference in business and industry; the motto of a certain 18 Century French School of Economists known as the Physiocrats
Adam Smith: The eighteenth-century Scottish economist popularized the term "Laissez Faire" ['Leave/Allow, to do'; more colloquially: 'Let them get on with it'] in his book "The Wealth of Nations" in which he describes the "Invisible Hand" that provides for the maximum good for all, if businessmen are free to pursue there own profitable opportunities as they see fit. 
Capitalism necessitates, Private Ownership/Property Rights, Individual Sovereignty/Self Ownership, and Rule of Law, using Supply and Demand, the Price System, functioning over time with the general principle of Kondratiev Waves; although significantly irregular.

Capitalism creates a meritocratic class mobility system; No system being able to abolish classes, those trying inevitably becoming dictators/oligarchs thus making up a very small tyrannical upper class overseeing a vast underclass still itself made unequal in its poverty by inevitable black markets.

Capitalism is distinguished from Communism, Socialism, Keynesian-ism, and Corporatism by minimal Govt. interference in the Free Market; A Free Market's Principal Freedoms being FROM Govt. Interference, and criminals' theft.

'Capitalist' as a pejorative; usually denotes today someone who has broken from the necessities of Capitalism into criminality or corporatism; an Economic Alinsky-ite with a motto of 'any means necessary' [to gain wealth] OR one who has been demonized for their success, often hypocritically by other "Haves" who contribute far less of a percentage in charity.

Capitalism is closest to a purely economic system; although it requires Govt. it does so only for Civic Equality, Equal Justice, and Govt.'s own limitation. 
'Equal Justice' should not be confused with any of the Orwellian terms used by socialists and progressives, It is juxtaposed to 'Disparate Treatment' (or so called 'Social Justice' - forced redistribution of wealth with a hostility towards individual property).
The U.S.A. deviates [functionally; not necessarily criminally] from Capitalism by...
Minimum Wage [an idiotic national standard where costs of living VARY State by State, District by district], 

Black Market Labor, [Artificial underclass created by negligently open borders and minimum wage law]

Corporatism; defined loosly as any regulation of industry outside of the criminalization of fraud, or standardization of interstate commerce, [the original constitutional meaning of 'Regulate'], 

Keynesian Income Redistribution: encompassing Welfare and  Entitlements, as well as 'Corporate Welfare' in the form of Bail Outs or Stimulus. Also Quantitative Easing [Printing and or Digitizing Money], and spending on Inferstructure [Valid, Wasteful, or Useless Bridges and Airports To Nowhere]. Subsidies, and 'Positive Rights' in general, etc

The Federal Reserve; [unaccountable non-govt/non-private]Central Banking, Unbacked Paper Currency, [other complicated machinery like purchasing national debt]

and Antitrust and Monopoly Laws.


Trickle Down Economics

[Opportunity Cost and The Law of Comparative Advantage]


Art Laffer's Andrew Melon's [Laffer Curve]
the concept behind the Laffer curve was earlier expressed by Andrew Melon

The Long Depression, The Depression of 1920 
The Great Depression, and The Great Recession



William Kurt [Hauser's Law]

“sort of like a funnel cloud. It doesn’t mean it’s going to crash, but it’s a high probability. 
You don’t get a tornado without a funnel cloud.” -Jim Miekka




Human Action: 
A Treatise on 
Economics by 
Ludwig von Mises 
Wealth of Nations 
by Adam Smith 
Free To Choose 
by Milton And 
Rose Friedman 

Theory of Moral Sentiments


Use of Knowledge In Society by F.A. Hayek (1945)
The Problems and Limitations of a Rational Economic Order 
Published 1945 with 2011 Synopsis/Commentary by Asderathos 


The Piety Myth: and the Law of Unintended Consequences; Intentions for a policy bare no relation to the effects of the policy

The Greed Myth: Selfishness vs Self Interest; Ayn Rand vs Adam Smith   

Synopsis: How to Argue Against Socialism and Defend Capitalism by Aaron Clarey

[Part 1] Merit-Philosophy and Law-Perspective (N-Korea and Cuba)

[Part 2] Methodology of the Opposition and Empirical Evidence
USA vs USSR, Cayman/Bermuda vs Cuba, Ireland vs Europe,
Hong Kong vs China, East vs West Germany, North Vs South Korea

[Part 3] Logic and Fact vs Illogic and Emotionalism
Hiroshima Nagasaki Atomic Bombings Example of Logic
and the St. Republicans

[Part 4, 5, and 6 of 14 parts] Data Mining, Economy of Argument, Socialist Belief, and Leftist Tactics 
Scape-Goating and Gaia Crying

The Libertarian Papers:
The Two Constructs: [Federation vs Union of Liberty]
Mises Institute Book Review:
"Millennium Doom, Fallacies About The End of Work" By Mauricio Rojas [PDF - LINK]

The Future of Freedom Foundation:
"Misreading the Industrial Revolution" by Lawrence W. Reed (September 1993) [Article - LINK]

The Industrial Revolution: Myths and Realities by Peter Landry [Essay - LINK]

Foundation for Economic Education [FEE]:
The Myth of the Robber Barons
[Article - LINK]
(Adapted from a lecture by Professor Folsom given at the History and Liberty Seminar in June of 08
Published: 19 December 2008

The Question of Monopolies by Nathaniel Branden
This essay was originally published in “The Objectivist Newsletter” June 1962.

Richard Epstein



The Parable of 
The Broken Window 
by Frédéric Bastiat 

(Read It Online, In Blog)
I, Pencil: 
A Parable of 
Civilization's Basis 
Upon Self Interested 

The Parable of Pizza on the Train via Stu & Pat


Alongside Night 
by J. Neil Schulman 
(Free PDF eBook)


Public Choice Economics 

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