Strictly speaking, there is
no such thing as “capitalist government”.
There are basically two types
of social organization; statism and freedom, and thus fundamentally two types
of government. Statism features authoritarian government, under which people
live and act only by permission, or by order, of some ruling authority. Freedom
features rights-securing government, under which people enjoy legal protection
of inalienable individual rights to life, liberty, earned property, and the
pursuit of happiness. All governments are one or the other, or a mixture
thereof.
Under statism, the government
often favors some groups over others, such as “labor” or “workers” over
“business” or “capitalists,” or vice-versa, but neither recognizes nor secures
individual rights. Under rights-securing, or free, government, government
favors no group, but treats everyone equally under the law by securing every
individual’s rights, equally and at all times, regardless of race, creed,
religion, natural endowments, inheritance, economic status, gender, sexual
orientation, etc. A free, rights-securing government steps in only against
those who violate anyone else’s rights **.
Since capitalism is the
social system of individual rights, including rights to free trade, free market
capitalism naturally flourishes under free government. But there cannot be a
“capitalist government,” since capitalism is freedom and freedom cannot
logically be imposed; it can only be protected. Freedom is the absence of the
government imposing its will on law-abiding citizens.
Importantly, the same free
government can not stop anyone from living according to their own values,
including non- or even anti-capitalist values, so long as they respect the rights
of others. The Communistic Societies of the United States by Charles Nordhoff and History of American Socialisms by John Humphrey Noyes document the many
experiments in socialism forged by America’s early (pre-Marx) socialist
movements. A crucial point stressed repeatedly throughout the books is the
reverence with which these pioneering socialists of the era held for America’s
system of free government--the very government that fostered the free market
capitalism that they rejected. Many of these socialist communities were created
by refugees from European persecution seeking the freedom to practice their
socialist creed. Typical of their attitude is expressed by Noyes, the Founder
of one of the socialisms, during the conclusion of his book:
The example of the Shakers [one of the
longer-lived voluntary socialisms] has demonstrated, not merely that successful
Communism is subjectively possible, but that this nation is free enough to
let it grow. [P. 669, my emphasis]
In other words, the free
limited government created by the Founders made sure that the socialists could
not be stopped by people who disagreed with their socialistic lifestyles. Quite
the opposite, the socialists coexisted peacefully with the surrounding
capitalism, including through trade. The freedom guaranteed by the laws of
America’s rights-securing government extended to socialist and non-socialist
alike. As Melvin D. Barger observed,
“Then or now, nothing in the fundamental American idea was opposed to the
socialistic communities of the early 19th century, since they were voluntary
arrangements and used peaceful means.” Voluntary socialism is perfectly
compatible with laissez faire capitalism precisely because capitalism features
free government, not “capitalist government”.
Redistribution of wealth is
by definition a feature of socialism, not capitalism. Forcible
redistribution of wealth is a feature of statist socialism--socialism
imposed from the top down by government force. Redistribution for the poor
(welfare), for the “workers” (unemployment “insurance”), for the middle class
(Social Security), or for business (corporate bailouts) are all manifestations
of socialism, by definition. As long as the redistribution of wealth is
voluntary, with those who wish to keep their wealth left unmolested, it is
perfectly compatible with laws under free government. Respect for property
rights is a feature of free government. It is not a feature of statism. Government
bailouts of corporations, like government imposed welfare, unemployment
insurance, and Social Security, would never happen under a free government
because those programs violate the property rights of the individuals and
businesses whose wealth is seized for redistribution. They are features of
statist socialism, not a free government.
As to the question at hand,
the premise that “capitalist governments bail out large corporations” is a
contradiction-in-terms. “Capitalist government” is a myth. A free government,
the only type of government under which capitalism can flourish, would never
bail out a corporation because that would violate individual rights. Likewise,
a free government wouldn’t forbid any individual, or association of
individuals, from voluntarily agreeing to pool their wealth to bail out a
corporation because voluntary socialism would not be outlawed ***. A government
that bails out corporations may superficially seem like a “capitalist
government” ****. But in fact such a government policy is socialism for
business, and cannot logically be labeled “capitalist” in any form. Corporate
bailouts are a policy of socialist government--a statist government that
imposes socialism by force.
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* [Quora is a social media website founded by
two former Facebook employees. According to Wikipedia:
Quora is a
question-and-answer website where questions are
created, answered, edited and organized by its community of users. The company
was founded in June 2009, and the website was made available to the public on
June 21, 2010.[3]Quora aggregates questions and answers to topics. Users can
collaborate by editing questions and suggesting edits to other users' answers.[4]
[You can also reply to other users’ answers.]
** [Rights are guarantees to freedom of action
in pursuit of one’s values, not a claim on the lives or property of others
based on need, misfortunate, or the like.]
*** [“Voluntary socialism” is, in fact, a
feature of capitalism. Freedom of association is one of the inalienable
individual rights that are guaranteed under free government.]
**** [A government that favors business and
corporations may, in a very narrow sense, be described as “capitalist
government” in that it is in “partnership” with big business. But that is not
capitalism as a social system. One must distinguish between capitalists
in the narrow economic sense and capitalism in the broader
philosophic sense. Capitalists, or business corporations, can exist under some
forms of statism, such as fascism. Genuine capitalism features the separation
of business and state in the same way and for the same reasons as separation of
church and state.
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