Capitalism vs. Free Enterprise

October 25, 2013 | By | Reply More

According to Thom Hartman, these two concepts are often confused. In fact, he urges that we ditch capitalism and embrace free enterprise:

If you ask someone like Rand Paul, he’d say somebody participating in this sort of system is a “capitalist.” But the cleanest definition of a capitalist is someone who uses their money – their capital – to make more money. Some capitalists do this by investing their capital in the stock market; others do it by investing in other people’s start-up businesses: they are called venture capitalists.

These kinds of capitalists do play their part in our society. Sometimes, they help small businesses get off their feet. But here’s what you won’t hear on Fox Business or CNBC: capitalists aren’t that productive and they aren’t actually necessary. Many are just like Paris Hilton: they sit around on their butts by the pool all day waiting for their dividend checks to come in. They make money while contributing absolutely nothing to the rest of society. And here’s the thing: free enterprise works just as well without capitalists, capitalism, or even venture capitalists. Worker-owned cooperatives are just as successful as any business backed by a massive Wall Street loan. . . . Too much capitalism is actually dangerous. All the major economic crises of the past 200 years were caused by capitalists on Wall Street trying to use their money to make more money.

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Category: Corporatocracy, Politics

About the Author ()

Erich Vieth is an attorney focusing on consumer law litigation and appellate practice. He is also a working musician and a writer, having founded Dangerous Intersection in 2006. Erich lives in the Shaw Neighborhood of St. Louis, Missouri, where he lives half-time with his two extraordinary daughters.

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