8. Capitalist Government vs. Statist Government

This is my interpretation and discussion of the Nature of a Capitalist Government versus the Nature of a Statist Government. The discussion of a Capitalist Government comes first, followed by the discussion of a Statist Government.

THE NATURE OF A CAPITALIST GOVERNMENT

A capitalist government is a proper, objectively established constitutionally-limited government that recognizes, preserves, defends, and protects individual rights, including property rights, and derivative freedoms, including economic freedom, and leaves citizens (individuals) alone to freely make choices and act based on Individual Freedom.

A government whose only purpose is limited to three basic functions:
(1) the police and law enforcement (to protect against criminals),
(2) the military/army (to protect against foreign attacks), and
(3) an objective justice system (courts) that are based on rational and objective rules and laws (to protect against the violation and infringement of individual rights, including property rights, to protect contracts from breach or fraud, and to objectively settle disputes).

See Item No. 2.

For a full discussion on the nature of government, please see Ayn Rand’s essay “The Nature of Government” from her book The Virtue of Selfishness, Chapter 14.

Capitalism is the social system of Individual Freedom, Individual Rights, including Property Rights, where the individual is free to pursue his/her own self-interests and pursuits of happiness, while not infringing upon or violating the individual rights, property rights, and derivative freedoms of any and all other free individuals – where an objectively established, constitutionally-limited government recognizes and is the preserver, the defender, and the protector of the individual’s rights, property rights, all derivative freedoms, and all unregulated, free-market trade, business, and commerce activities.

A true capitalist type limited-government provides only the three (3) essential functions of government: the police (law enforcement), the military, and an objective justice system – all of which are true peace keepers, and preservers, protectors, and defenders of individual freedom, individual rights, property rights, derivative freedoms, upholding contractual agreements, and unregulated free-market commerce and trade.

Under true Laissez-faire Capitalism:

  • No government interference in private affairs.
  • No government force-oriented regulatory departments or bureaus, such as the EPA or the IRS.
  • No special interest groups manipulating government.
  • No government regulation or control of commerce.
  • No taxation of income, wealth, profits, savings, financial activities, or property.
  • No government violation or infringement of property rights or property.
  • No Eminent Domain.
  • No governmental coercion or tyranny against the citizenry or the economy.
  • A government that recognizes, preserves, defends, and protects the individual rights, property rights, and derivative freedoms of its citizenry and businesses.
  • Only free individuals pursuing individual self-interests and happiness, among millions of other individuals doing the same.
  • Millions of free individuals, all coexisting and living together peacefully under individual voluntary cooperation and an unregulated free-trade economy.
  • Encourages genuine goodwill and benevolence towards one’s fellow man.
  • No masters. No slaves. Only free individuals.

That is the nature of Capitalism.

For an insightful discussion regarding the nature of government, see Ayn Rand’s book The Virtue of Selfishness, Chapter 14, “The Nature of Government,” pb pp. 107-115 (Signet, ~1980).

Reference Item No. 30.

THE NATURE OF A STATIST GOVERNMENT

A statist government is an overpowering, tyrannical, and growing government that interferes with, infringes upon, regulates, and controls its citizenry, their individual rights, their property rights and property, their economic freedom, including any and/or all commerce and business activities and applications between both producer and consumer, domestically and/or internationally (if not totally seized by the state).

Statism represents using coercive government force, intimidation, enslavement, and physical terror against innocent citizens and businesses, including the initiation of physical force against other nations (imperialism) if necessary to preserve and sustain its tyrannical system, and maintain its power and control.

A government that forms a police force to control, intimidate, terrorize, rape, and force its citizenry into submission; a government that forms an army to attack and invade other nations, and uses the justice system and courts – based on arbitrary, irrational and/or religious law – to control and terrorize its citizenry.

As Statism grows, the governments, rulers, dictators, etc., become increasingly ruthless in the use of power and terror towards the citizenry and any surrounding nations to maintain their power and control.

Observe the end of the Roman Empire, the Dark Ages, as well as present-day China, Russia, Iran, North Korea, many African Republics, etc.

See Item No. 2.

Statism is the social system of Masters and Slaves, where the state is the master, and the individual is the slave – no matter in what form or for what reason.

A statist type government establishes corrupt police (law enforcement), corrupt military, corrupt justice systems, and corrupt government agencies and institutions (such as the EPA) that are slave enforcers for the state, tax enforcers for the state, and violators and abusers of individual freedom, individual rights, property rights, derivative freedoms, and of any free-market commerce and trade allowed to exist.

Under all and any forms of Statism:

  • Government controlled society.
  • The individual’s life belongs to the State.
  • Unlimited government regulation and control.
  • Government coercion, force, and tyranny.
  • Massive taxation, with the threat of going to jail if you don’t pay the taxes (slavery).
  • Limited or no freedom.
  • Limited or no individual rights.
  • Limited or no property rights.
  • Limited or no derivative freedoms.
  • Encourages contempt and malevolence towards one’s fellow man.
  • Only Masters and Slaves.

That is the nature of Statism.

“A government big enough to give you everything you want, is strong enough to take everything you have.”
Thomas Jefferson

“‘Society’ is a fine word, and it saves us the trouble of thinking.”
William Graham Sumner, 1883

For an insightful discussion regarding the nature of government, see Ayn Rand’s book The Virtue of Selfishness, Chapter 14, “The Nature of Government,” pb pp. 107-115 (Signet, ~1980).

Reference Item No. 30.

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