Anyone can assemble letters and assign definitions as they please, but that does not make them correct. The Marxian definition of capitalism, along with the entire Marxist social philosophy was based upon the erroneous labor theory of value. Marx could never complete his ideas on capital because they were founded upon a false premise. He also turned class analysis sideways and the results of applying his theories are manifest in the historical record. Therefore the definition of capitalism needs consistency and coherence before its nature can be rightly understood.
Capitalism is private ownership of the means of production. Every government intervention that excludes, compels, redistributes, directs or controls the means of production, even if privately held in name, distorts the production process. It distorts the system of production based on private ownership of capital resources, including, but not limited to, fiduciary media. There is no such thing as a mixed economy, the economic system is in constant motion and is either moving in the direction of private producers (every producer is a consumer and vice-versa, no exceptions) or in the direction of political control.
Every political decree distorts the system of private ownership and produces unintended consequences. These distortions lead to calls for further political intervention that yield even greater distortions and exacerbates the myopic political actions. Nowhere is this more fundamental than in the production of currency.
Those on top despise competition that would challenge their position, so they use the political means to suppress the productive activities of others. Hamilton was a frontman for the Rothchilds and their control of the London banking cartel. “Hamilton’s Curse” was the introduction of a central bank to the newly formed Republic, which in Jefferson’s view, made the achievements of the Revolution in vain.
The Roosevelts worked at the behest of the Morgans and both paved the way for the establishment of central banks that benefitted the politically connected at the expense of every American citizen. This was done without regard for what was written in the Constitution and the Coinage Act of 1792. The U.S. of A was supposed to be different, but like all interest articulation, distributed costs and concentrated benefits attract vultures to use the political means in increasing their earnings. This is true for military contractors and “too big to fail” businesses as much as it is for those looking for Socialist Security Insurance and government “provided” medical services. It requires government coercion and manipulation in order to force the redistribution of privately held capital assets.
That the charter for the First Bank of the US was not renewed and Jackson’s highest achievement, by his own words, was “killing” the Second Bank of the US, should inform ideas about central banking in the American experience. Government arrogating itself (or a proxy) a monopoly on currency production (or any other productive endeavor), is NOT capitalism. Forcing everyone within a jurisdiction to only use, by penalty of legislation, a fiat currency (or any other artificially manipulated product or service, including labor) is NOT capitalism. The United States has had periodic spurts of true market capitalism throughout its history and since the creation of the latest central bank in 1913, the free market and the private ownership of the means of production has been increasingly marginalized. The periods surrounding WWI & WWII gave birth to War Industries Boards and other government controls on production assets that spawned the Military-Industrial Congressional Complex. This era has also witnessed continual increases in poverty levels (despite unprecedented social spending), street riots, flash mobs, the need for two working parents and diminishing returns on higher education. It has also been the era of increased frequency for low intensity skirmishes, insurgencies and indecisive warfare.
Private ownership of the means of production (including money) is capitalism and the mainspring of human progress. It is what allowed humanity to escape the Malthusian trap. It is what brings about the highest good for the highest number of people and the Socialists still have not been able to reconcile their theories with the empirical data, so they try to justify the political manipulation of private property with calls for a “mixed economy”. This is nothing more than creeping socialism and the source of societal decay, breakdowns in cooperation and a continual source of conflict.
Private ownership of the means of production, on the other hand, creates social harmony as no one is forced to act contrary to their best interests and everyone is free to trade value for greater value as they give what they have to get what they want. Value grows as each individual “appreciates” the products and services of others. Sound money, itself a an asset rightly attributed to private production, serving as a stable means of calculating profit and loss, is the cornerstone for facilitating exchange.
The just, equitable and Constitutional solution to these encroachments and distortions is to ensure a complete separation of the economic activities of private property holders and political manipulation by the State. The proper sphere of government is to serve as the security agency that protects the atmosphere where individuals are free to act in their chosen productive endeavors.