MY DEFINITION OF CAPITALISM

CAPITALISM (NOUN): An economic system of free markets, which results when and where there is freedom from any forcible or coercive (viz., government) intervention in markets. No other economic system can possibly evolve from such freedom.

Freedom, not capital, is the one and only indispensable element of capitalism.

Capital is important but even without any capital to start an entrepreneur can acquire capital by profiting from engaging in free exchange.

Private property is crucial, but only because it is a crucial element of freedom. Private property could exist in the absence of freedom, but freedom cannot exist absent private ownership. Give me freedom, and I will perforce have or be able to obtain private property.

Competition is important, but with freedom, competition will always arise where markets are free and unhindered profit opportunities exist.

Given the fact that freedom—not capital—alone is absolutely necessary, I much prefer to refer to capitalism as a “free-market economic system” (FMES), and hope to see a word, which was primarily bestowed on what was then called laissez faire by Karl Marks, replaced by FMES.