I just published Semantic Infiltration as a glossary term and I nearly fell for it myself recently. I am an anarcho-capitalist and refuse to relinquish the word capitalism as if it means corporatism or cronyism, but there is an insidious plan afoot that has converted so much of the world’s production into financial wealth amassed among purely financial actors, that in describing it I nearly adopted the term of collectivism: Financial Capitalism. First of all, that’s basically a redundancy – capital is money, finance is money – but the phenomenon propagated by fiat money and fractional reserve banking through which the richest, most powerful people in the world create money, lend it to governments, corporations and individuals, multiply it and forever benefit from investing something they never had while the productive borrower pays out all his surplus in interest. This financial structure underlying every asset drives up prices so that we can only access those assets through financial instruments like school loans, mortgages, health insurance (all three fostered by government policy, I might add). But what to call this? I nearly fell for the trap and started calling it financial capitalism as if the “financial” didn’t transform the word capitalism into something bad, then it hit me – call it what it is – financial fascism, whereby cronies leverage the power of government to gain control of the financial system and grow it until it consumes all that is good. It’s fascism, not capitalism.
Update: I wish he had said anti-fascism!!
Matt Ridley’s ‘Case for Free-Market Anticapitalism‘
Ridley argues that the champions of markets need to recapture their radicalism.