Is Unlimited Capitalism Freedom and Individual Responsibility?

New blog on the kid: Is Unlimited Capitalism Freedom and Individual Responsibility? · Assorted retorts from yahoo boards and elsewhere: Freemarket Holodomor on Ireland, 19th C.

Understanding Capitalism
7 lessons, 4h total length, Hillsdale College: Economics
https://online.hillsdale.edu/courses/register/capitalism?sc=02082H0000L21DODEES

Capitalism rewards man with profit or punishes him with loss, depending on the merit of his actions. It expresses the freedom and rationality of human nature in an economic system. The capitalist system depends upon private property rights, the freedom of exchange and contract, sound money, and the rule of law that supports all of these through formal and informal structures. Such a system encourages innovation and morality along with economic prosperity.

I would argue that Distributism (a conscious fostering of small property, small enterprises, small units of housing) and Corporativism (a trade unionism respectful of property rights) fulfills above better than for instance the Capitalism of the Finance Bubbles or of Industrial Manchester / Chicago in the 19th C.

Oh, once thing "innovation" is also not unlimited for the models I prefer, as some innovations can be deceptive and bad:

Christians Need to WAKE Up About AI—Before It’s Too Late
Answers in Genesis | 14 March 2025
https://www.youtube.com/watch?v=HfTIW4JTY0Q

Or we are happy that Benfluorex (marketed as Mediator in France) and Talidomide (marketed as Neurosedyn in Sweden) are now banned in both countries, which is obviously a restriction on the free market.

Now, I'll copy the summaries of the lessons, and then comment on the snag of each:

Human Nature and the Cost of Choice

Capitalism depends upon property rights, sound money, the freedom of exchange and choice, and the rule of law. Within these conditions, capitalism has produced greater human flourishing for more people than any other economic system.

Snag

The only real snag is semantics, taking these things as part and parcel of Capitalism only, while they are common ground and sometimes better implemented by Corporativism or Distributism.

Profit, Loss, and the Economic Structure of Society

Profit and loss are economic indicators of the success of our choices. In a free society, responsible choices produce profit while irresponsible actions incur loss.

Snag

Any lack of luck can incur loss. If "irresponsible" means depending on luck, so do many "responsible" choices that produce profit.

There are also inbuilt factors in Capitalism, which make losses probable. For instance, full freedom to replace manpower with cheaper and more effective machines will up to a certain point involve making the production more secure and more varied and allowing more people productions of luxury. But "full freedom" means it doesn't stop at this point.

Both a lowering of business cycles and simply overdoing it can mean there are no more outlets for luxury production, so no more works to be had that way. As a result, more and more of the population gravitate to very low paid jobs, to a dependent existence as out of work, to a dangerous existence as out of work AND to sth the summary doesn't mention, jobs that manage the dependents and watch out about the dangerous. The prolongation of, I will not say so much medium length of de facto school attendance, but how much of it is legally or socially a requirement, is one of the variations on dependence, and is a breeding ground for the danger. Have you noticed school shootings are more numerous, not just in the US, not just because of liberal gun laws, across the world and with widely different gun laws, than for instance "farm shootings" or "factory shootings" or "cinema shootings" or "truck driver shootings" ...

Production and the Division of Labor

Economic production refers to the production of value. As human innovation creates new forms of value, a division of labor emerges to meet the demand for these new goods and services.

Snag

With, as said, one of the specialisations being "becoming dependent", one being "becoming dangerous" and two more being "social worker for the dependent" and "police, private security, shrink etc for the dangerous" ... many much more lovely specialisations are only available during certain business cycles. Remember the Broadway Musicals and the Film versions of them? When was the latest hit like Sound of Music (1965)? Or like Chitty Bang Bang (1968)? Or like Mary Poppins (1964)? Or Finnegans Rainbow (1968)? Singing in the Rain isn't the sixties, right? No, it's 1952. What about Robin Hood or the 101 Dalmatians? 1973 and 1961. Aristocats (1970), Lady and the Tramp (1955), The Sword in the Stone (1963)? I think since then there has been like one per decade, Grease in the 80's and The Lion King in the 90's.

Economies of Scale and Scope

Large operations tend to be more efficient at production, but they require greater investments in management and organization. Individuals and corporations maximize their efficiency by balancing the proper size and scope of their endeavors.

Snag

Individuals who need cost reductions drive large corporations (American, not Italian sense), which in turn will have more people working as employees needing cost reductions and fewer working their own company and able to afford.

Trade and Comparative Advantage

Trade allows men who specialize in the production of one good to exchange with men who specialize in the production of another. This increases total production and wealth.

Snag

This part is obviously common ground for Capitalism, Communism, Distributism, Corporativism, even, to a lesser but nt negligeable degree, Manorialism (the economic side of Feudalism, the political one being a parallel to the US division of Nation, State, County, but with more monarchic and militaristic or ecclesial touches).

In some cases, this however in Capitalism comes down to entire countries being ... even enslaved to a point ... to specialisation. Ghana needs to export cocoa to import necessities ... but before international trade, Ghana was able to produce necessities.

Technology and Resources

Technology is the unique human ability to discover how to convert resources into useful implements. Economic resources are created by human ingenuity as we discover new uses for previously worthless materials.

Snag

Technology is also a means of production, and the more rationalisations, the more you make manpower superfluous.

Prosperity, Morality, and Freedom

Capitalism is not the simple pursuit of profit without regard for moral restraints. Capitalism produces wealth by serving the desires of society. A moral and free society will reward good economic activity, which in turn creates prosperity for the people.

Snag

Basically one per sentence:

"Capitalism is not the simple pursuit of profit without regard for moral restraints."

Did you steal that line from a Kulak or Mom and Pop shop defending themselves against a Socialist accusation?

This is very largely the case with small business. It is far more often disregarded by Big Business.

"Capitalism produces wealth by serving the desires of society."

And sometimes produce desires by unfair means ... cheap goods are desired by the employees of Big Business and by the Unemployables who aren't self imployed, and also, as "Unemployables" aren't employed. Such Employees and Unemployables are produced by fewer opportunities for real self employment or small business. I oversimplify, some Employees are obviously well paid and some Unemployed are frugal but pay certain select goods a bit more.

"A moral and free society will reward good economic activity, which in turn creates prosperity for the people."

This is very often true of Distributism and Corporativism, but also of the parts of Laissez-Faire Capitalism that are closest in functioning to these ideals.

This is much less true of Usury or of certain "exotic derivatives in the stock- and finance-markets" — as denounced by Louis Even (RIP, if he still needs it) or by the late Lyndon LaRouche (did he die a Catholic?). In both items, the Capitalist condition is a sin against "sound money", and therefore indirectly against "the freedom of exchange and choice".

Hillsdale College, I rest my case, if you wish for debate, it's a fun activity which can even be lucrative (my dialogues blog posts obviously have double authorship and double right to royalties ...).*

Hans Georg Lundahl
Paris
Oculi LD
23.III.2025

* Copyright issues on blogposts with shared copyright.