Well you have mercantilism, which was the predecessor of capitalism
Basically, the difference is the role of government. Think of it in feudal terms - a noble owns a mine, owns an expedition, uses their soldiers for both security of their land and their monetary interests. As far as raw resources/resource producing land, you couldn’t buy that without buying a title first
But it’s a line that blurred as time went on. If you’re a leather worker, that leather came from an animal owned by the king or by livestock owned by a noble. So you’re paying taxes on the inputs, but you can probably sell stuff freely - although imports and exports might be taxed. And if you’re a merchant, you might buy spices from one noble and sell it to others
But the means of production were owned by a noble - they owned the land and the serfs that work it, they own the animals and the mines.
As time went on, it kinda faded… Maybe you sell the rights to mine a site, maybe you partner with a merchant to go on an expedition for spices, maybe you just require a permit to hunt on the land, and so on
But then as supply chains gets more complicated, you kind of naturally evolve into capitalism
See, the trick there is in your first paragraph I feel like. Under mercantilism, trade is under the almost exclusive purview of the government. So I would argue this doesn’t really meet the definition of “free trade.”
But, to steel man a bit, when “the government” is fairly unstructured, like in a feudal system, the line between government control of trade and “private citizen” control of trade can be a bit blurry. And over time I’m sure it gets messy whether a person is a “government entity” or not.
I do also feel like there’s a “difference of scale is difference of kind” problem here. Obviously if you own a copper mine and employ hundreds of people to go down and mine it for you, you own the means of production. But also, if you run a small restaurant in a strip mall and hire a half dozen servers to wait tables, you also own the means of production.
And, to your point, there probably were private innkeepers under mercantilism that took coin in exchange for goods and services. They probably employed people to help work the place. Does that make it capitalism? What if the owner used the money from that inn to build another, then another and another, and eventually had the money to buy a title and become part of the “noble class”? Is it capitalism then? Does a system that allows for that count as a capitalism, or does it need to actively encourage it?
Idk. I think my big issue, at the end of the day, is that the word capitalism doesn’t really mean anything. Or, rather, no one can really agree on what it means, and it just turns into a tribalism stand in word for “anyone who disagrees with me on economic policy.” But that’s so unspecific as to be totally useless. What parts of “capitalism” are you decrying? What would you replace it with? But I feel like any questions are met with anger that you’re not bought into the anti-capitalist agenda, even though no two people seem to agree on what that actually means.
To address your first point, you go into the bazaar, and you buy a shirt vs another shirt. The lord owns the cotton fields, they both come from the same place but have different prices and different quality/traits - that’s a free market. The raw materials belong to the lord, but what you do with it is up to the artisan
You’re trying to cut the difference between raw materials and value added - that’s the murky difference between mercantilism and capitalism
Remember, there was an age where shipping iron to a town was how farmers got tools - mercantilism is about raw materials in and out, once things get complicated it doesn’t make sense
Fair, though it seems like you’re saying that capitalism is just complicated mercantilism, at which point it ceases to be a good example of free trade without capitalism, no?
Though, I do get your overarching point that capitalism has more to do with private ownership of the means of production.
I think though, especially in a service economy like the US, it’s hard to define “the means of production” in a way that is distinguishable from generalized private property and enterprise.
Sorry, I don’t think I understand what you’re trying to say
If you want free markets without capitalism - this literally existed
What are the means of production? Machines that weave thread into cloth. Machines that weave cotton fibers into thread. The land that grows the cotton. The people that harvest the cotton. The land itself
The was something that money could not buy, until it could. That’s the line
Sorry, iirc this conversation started with the question about what does free trade look like in a non-capitalistic system, and you pointed to mercantilism. You then seemed to say that the main difference between capitalism and mercantilism is the complexity of the marketplace. Which, if true, seems like a poor example of free trade without capitalism, as they’re largely the same system.
But I do understand your point. When trade is controlled by the state (a la mercantilism), I don’t know that I’d call it free trade, but, really, I’m not too hung up on this point, as I think the real blurring of the line is on the micro vs macro scale. You can have local free trade without large scale free trade (e.g I can sell leather goods, but not be involved in the import and export of animal products which remains the purview of the “government”). I might argue that this is localized capitalism in a non-capitalist system, but typically when we talk about capitalism we are talking about governmental economic organization.
I also really feel like this breakdown is due to trying to map this into the modern economy. Does the definition of the “means of production” breaks down in a service economy like the US? The amount of total jobs involved in any part of cloth production (or other manufacturing sector jobs) is a minority. What does “seizing the means of production” look like when what’s being “produced” are services not goods?
I think, if nothing else, it makes it hard to distinguish the “leather worker” from the “animal products exporter” as those are only different in scale not kind when there is no immutable aspect of nature or industry under control. The difference between my local burger joint and McDonalds is of scale, not kind, so how do I seize the means of production from one and not the other?
Capitalism isn’t the same thing as free trade, we’re talking about literal individual markets. It could be a free market, the lord could be involved with workshops and give them exclusive rights, it could be a guild system, or he might just let the people do whatever
As for the means of production in the service industry… It’s the building, the fryers, the computers, the agreements with suppliers or customers… some of these things are more abstract, but if you swap out the people, anything that’s still there
Keep in mind, supply chains were pretty simple back then. You didn’t make shovels, you have a local blacksmith who takes in iron and makes what you ask for. But everything is done at the prerogative of the lord, if he decides you need to make something you do it, if he decides you’re overcharging he can set your prices, maybe you get ordered to take on apprentices
Think of the town as another resource - the lord gets more taxes the better the local economy is, but can also meddle in it however they like
Does the smith own the smithy? Kind of, but you could also say the smithy kinda owns the smith and the town owns the smithy and lord owns the town
Well you have mercantilism, which was the predecessor of capitalism
Basically, the difference is the role of government. Think of it in feudal terms - a noble owns a mine, owns an expedition, uses their soldiers for both security of their land and their monetary interests. As far as raw resources/resource producing land, you couldn’t buy that without buying a title first
But it’s a line that blurred as time went on. If you’re a leather worker, that leather came from an animal owned by the king or by livestock owned by a noble. So you’re paying taxes on the inputs, but you can probably sell stuff freely - although imports and exports might be taxed. And if you’re a merchant, you might buy spices from one noble and sell it to others
But the means of production were owned by a noble - they owned the land and the serfs that work it, they own the animals and the mines.
As time went on, it kinda faded… Maybe you sell the rights to mine a site, maybe you partner with a merchant to go on an expedition for spices, maybe you just require a permit to hunt on the land, and so on
But then as supply chains gets more complicated, you kind of naturally evolve into capitalism
See, the trick there is in your first paragraph I feel like. Under mercantilism, trade is under the almost exclusive purview of the government. So I would argue this doesn’t really meet the definition of “free trade.”
But, to steel man a bit, when “the government” is fairly unstructured, like in a feudal system, the line between government control of trade and “private citizen” control of trade can be a bit blurry. And over time I’m sure it gets messy whether a person is a “government entity” or not.
I do also feel like there’s a “difference of scale is difference of kind” problem here. Obviously if you own a copper mine and employ hundreds of people to go down and mine it for you, you own the means of production. But also, if you run a small restaurant in a strip mall and hire a half dozen servers to wait tables, you also own the means of production.
And, to your point, there probably were private innkeepers under mercantilism that took coin in exchange for goods and services. They probably employed people to help work the place. Does that make it capitalism? What if the owner used the money from that inn to build another, then another and another, and eventually had the money to buy a title and become part of the “noble class”? Is it capitalism then? Does a system that allows for that count as a capitalism, or does it need to actively encourage it?
Idk. I think my big issue, at the end of the day, is that the word capitalism doesn’t really mean anything. Or, rather, no one can really agree on what it means, and it just turns into a tribalism stand in word for “anyone who disagrees with me on economic policy.” But that’s so unspecific as to be totally useless. What parts of “capitalism” are you decrying? What would you replace it with? But I feel like any questions are met with anger that you’re not bought into the anti-capitalist agenda, even though no two people seem to agree on what that actually means.
To address your first point, you go into the bazaar, and you buy a shirt vs another shirt. The lord owns the cotton fields, they both come from the same place but have different prices and different quality/traits - that’s a free market. The raw materials belong to the lord, but what you do with it is up to the artisan
You’re trying to cut the difference between raw materials and value added - that’s the murky difference between mercantilism and capitalism
Remember, there was an age where shipping iron to a town was how farmers got tools - mercantilism is about raw materials in and out, once things get complicated it doesn’t make sense
Fair, though it seems like you’re saying that capitalism is just complicated mercantilism, at which point it ceases to be a good example of free trade without capitalism, no?
Though, I do get your overarching point that capitalism has more to do with private ownership of the means of production.
I think though, especially in a service economy like the US, it’s hard to define “the means of production” in a way that is distinguishable from generalized private property and enterprise.
Sorry, I don’t think I understand what you’re trying to say
If you want free markets without capitalism - this literally existed
What are the means of production? Machines that weave thread into cloth. Machines that weave cotton fibers into thread. The land that grows the cotton. The people that harvest the cotton. The land itself
The was something that money could not buy, until it could. That’s the line
Sorry, iirc this conversation started with the question about what does free trade look like in a non-capitalistic system, and you pointed to mercantilism. You then seemed to say that the main difference between capitalism and mercantilism is the complexity of the marketplace. Which, if true, seems like a poor example of free trade without capitalism, as they’re largely the same system.
But I do understand your point. When trade is controlled by the state (a la mercantilism), I don’t know that I’d call it free trade, but, really, I’m not too hung up on this point, as I think the real blurring of the line is on the micro vs macro scale. You can have local free trade without large scale free trade (e.g I can sell leather goods, but not be involved in the import and export of animal products which remains the purview of the “government”). I might argue that this is localized capitalism in a non-capitalist system, but typically when we talk about capitalism we are talking about governmental economic organization.
I also really feel like this breakdown is due to trying to map this into the modern economy. Does the definition of the “means of production” breaks down in a service economy like the US? The amount of total jobs involved in any part of cloth production (or other manufacturing sector jobs) is a minority. What does “seizing the means of production” look like when what’s being “produced” are services not goods?
I think, if nothing else, it makes it hard to distinguish the “leather worker” from the “animal products exporter” as those are only different in scale not kind when there is no immutable aspect of nature or industry under control. The difference between my local burger joint and McDonalds is of scale, not kind, so how do I seize the means of production from one and not the other?
Capitalism isn’t the same thing as free trade, we’re talking about literal individual markets. It could be a free market, the lord could be involved with workshops and give them exclusive rights, it could be a guild system, or he might just let the people do whatever
As for the means of production in the service industry… It’s the building, the fryers, the computers, the agreements with suppliers or customers… some of these things are more abstract, but if you swap out the people, anything that’s still there
Keep in mind, supply chains were pretty simple back then. You didn’t make shovels, you have a local blacksmith who takes in iron and makes what you ask for. But everything is done at the prerogative of the lord, if he decides you need to make something you do it, if he decides you’re overcharging he can set your prices, maybe you get ordered to take on apprentices
Think of the town as another resource - the lord gets more taxes the better the local economy is, but can also meddle in it however they like
Does the smith own the smithy? Kind of, but you could also say the smithy kinda owns the smith and the town owns the smithy and lord owns the town