The Defining Fundamentals of Capitalism:
Ayn Rand describes Capitalism as a social system that recognizes individual rights, including property rights, where all property is privately owned.
For the full discussion and exact text by Ayn Rand regarding Capitalism, refer to her book Capitalism: The Unknown Ideal, Chapter 1, “What is Capitalism?” pb, pp. 11-34, def. p. 19 (Signet, ~1980).
The Defining Fundamentals of Statism:
Ayn Rand describes Statism as a social system based on the fundamental idea that “man’s life belongs to the state,” where the government, or any ruling group, regulates and controls a country’s economy in any manner or to any extent, “for any purpose whatsoever.”
For the full discussion and exact text by Ayn Rand regarding Statism, refer to her book Capitalism: The Unknown Ideal, Chapter 19, “Conservation: An Obituary,” pb, pp. 192-201, def. p. 192 (Signet, ~1980).
The following is My Interpretation and Commentary.
The two fundamental principles of Capitalism are:
(1) A social system that recognizes individual rights, including property rights;
(2) All property is privately owned.
The principle of recognizing individual rights, including property rights, not only applies to the private individual, but also implies recognizing commerce and business rights as well – since commerce and business is essentially the application of individual freedom, individual rights, including property rights, to commerce and business activities. And that a proper, objectively established, constitutionally-limited government of a true, laissez-faire capitalist society will have NO constitutional and/or legal power to interfere with, infringe upon, limit, prohibit, dictate, regulate, mandate, violate, and/or control – in any manner whatsoever – the economy, meaning all commerce, all trade, all banking, and all business, including the use of any and all property associated with commerce, trade, banking, and business.
For a brief, yet important, discussion regarding the concept of what a “right” is and what it implies, including references to the writings by Ayn Rand regarding rights, please see Item No. 5.
NOTE: The purpose of first creating a proper, objective constitutional document for a capitalist society is to establish, define, outline and set the limits of the proper, objective functions of a constitutionally-limited government. Furthermore, such a constitutional document is established to recognize (not decreed by the government), preserve, defend, and protect individual and economic freedom, individual rights, including property rights, derivative freedoms, and all free-market commerce – and to limit and prevent the government from interfering with, infringing upon, limiting, prohibiting, dictating, regulating, mandating, violating, and controlling individual rights, including property rights, derivative freedoms, and all commerce. Finally, such a constitutional document would prevent any and all forms of government taxation on any property, wealth, income, profit, trade, and commerce – and establish a non-taxation method of financing the government.
A Capitalist-oriented Constitution is designed to limit and control the government, and to outline its only proper functions of recognizing, preserving, defending, and protecting man’s individual rights, including property rights.
The two fundamental principles of Statism are:
(1) A social system established based on the fundamental idea that the individual’s life belongs to the state (government or ruling group);
(2) The government regulates and controls a country’s (or geographic region’s) economy.
The fundamental idea that an individual’s life belongs to the state implies that individual rights, including property rights, are NOT recognized, preserved, defended, or protected by the statist government. Therefore, all manner of abuse, infringement, regulation, control, and violation against an individual’s life and rights, property rights, all derivative freedoms, including against all commerce and business freedom and activities, are possible and occur under any social-political system of Statism.
NOTE: The constitutional documents of statist governments, even if one exists, are always formed and established under the premise that an individual’s life belongs to the state (government or ruling group), and usually set up so that the state is given the coercive power to regulate, limit, and control the lives and actions of its citizenry and business. Usually, such statist constitutional documents will not only define what “duties” the citizenry must follow, but may also define, outline, layout, and decree which particular rights and freedoms (if any) the individual, the citizenry, and businesses will be allowed by the government to practice, and under which particular conditions and/or limits they will be allowed to practice such.
A Statist-oriented Constitution, if one exists at all, is designed to limit and control individual and economic freedom for all citizens involved, and outlined to preserve political power and institutionalize tyrannical force by the state over society.