Pre-Header Tagline

You don't coerce or injure others. Why can politicians do it?
New Mental Lever

What is capitalism?

Capital is money or resources used for production rather than consumption.

When a farmer pauses his work to create a tool to make future labor easier, that tool is a form of capital. Indeed…

Tools were the only form of capital before the advent of money. And tool-creation is still the main use for monetary capital today. In other words…

Capitalism is TOOLISM.

  • We delay gratification (forgo immediate consumption) in order to save money to invest in tools (shovels, drill presses, tractors, assembly lines, robots, computers, etc.)
  • The new tools allow for expanded or more efficient production
  • Increased production allows for more consumption through increased profits, higher wages, and a decreased cost of living

If you have a savings account or any kind of investments, then you’re a capitalist. It’s really that simple — capitalism is a savings account or investment portfolio that’s used to fund tool creation.

By Perry Willis & Jim Babka

Polling Slider


6 Responses to "What is capitalism?"

Leave a replyLeave a Reply to Perry Willis