The ‘mixed’ economy is not a variety of capitalism; it is a variety of statism. The ‘capital’ that exists in the ‘mixed’ economy is held captive by the State in a ‘mixed’ economy that leans towards socialism, and the ‘capital’ that exists in the more fascist version of the ‘mixed’ economy is undermined by counterfeiting and is made into a means and method of political bribery. To be able to critically evaluate capitalism, then, it is essential to examine its true nature, in a non-propagandized mode of operation.
First of all, if the true nature of capitalism was made known then everyone would reject statism for a whole host of reasons, economic and ethical. In other words the State has to propagandize, with falsity, capitalism or else statism would be cast into the dustbin of failed man-made systems. The self-preservation and lust for power of the State drives its proponents and agents to use propaganda tools to misinform everyone about free market capitalism.
Capital is what makes available goods and services in the future and it is what makes possible any and all improvements of the goods and services available. At the same time it is what pays the income of those who are a part of the production process, whether that production is for goods and services available right now in the market (unless revenues exceed costs), or whether that production is for goods and services that will come into the market in the future. There is no person in the world who is not a beneficiary of capital. It is simply and naturally a part of the economy.
Capitalism (a non-propagandized definition) is a synonym for an unhampered free market economy, a contractual society built upon the foundation of property rights. If you ponder the meaning of these words you will recognize that capitalism has not yet existed at any time on the Earth as of yet. What this means is that all of the negative attributes assigned to capitalism are really just the bad fruits of ‘mixed’ economies.
Theoretically, in both economics and in ethics, the unhampered free market economy is the optimal and the best means for peace and prosperity. There is empirical evidence from various historical examples of when relatively free markets existed for periods of time in various places around the world. None of these were unhampered free market economies or fully contractual societies built upon the foundation of property rights. There has always been some interventionism.
The critics of ‘capitalism’ are perceptive. They see the obvious flaws of the ‘mixed’ economy but because of the propagandized definition of capitalism they foolishly clamor for more statism! Such is the plight of humanity in these, the Dark Ages of economics. There is a technological breakthough in economic science that will help to dispel this blight of economic ignorance. That breakthrough is the divine economy theory.
Check out my new website: http://bruce-koerber.squarespace.com