teal, you make some very valid points. As with Pure Marxism, pure capitalism is an unatainable goal as long as soceity is composed of falible human beings. However, because capitalistic theory assumes and makes use of the falibility of man instead of ignoring or rejecting it as comunnism does, even an imperfect capitalistic system can result in a stable, prosperous nation. While the imperfect communist system will trend towards totalitarianism as the government strives to maintain growth and order in the absence of personal incentive.
The rule of law is required for a stable society regardless of economic system. Most laws have nothing to do with the produciton and distribution of goods and services. Those that do should strive to use as light of a touch as possible, to allow the "Unseen hand" unfettered movement.
Social programs are not by definition anti-capitalist, and neither is government as a whole. But either can be done to an excess that becomes anti-capitalist.
Government with a light touch that encourages entrepreneurship and competition can be most decidedly pro-capitalist.
Social programs that act as safety nets for the truely unfortunate members of a soceity can also be pro-capitalist as it can help prevent the spread of crime and disease which are bad for the wealth of the nation. Pro-capitalist social programs must be designed with incentives for the receipients that encourages their own personal entrepreneurship. To provide them the means and opportunity to better themselves. Not to simply provide their needs and wants indefinetly. Or they are no longer part of the market. They become non-productive.
Government is also neccesary for the common good. To do the things that individuals can't, and business shouldn't do. Infrastructure, defense, keeping the peace, enforcing the rule of law. But they need to be accountable to the public, and strive to be as efficent as possible. As Smith said these duties may be noble, but they are by their nature unproductive. Government cannot be productive, but it should strive to keep it's level of non-productiveness to an absolute minimum that is still sufficent to maintain the general welfare of the population.
Jeez, this is turning into a manifesto here.
Geoschmo
P.S. And Tbontob, Anti-Trust laws are not anti-capitalist, because capitalism needs competition between providers of goods and services. Monopolies are anti-capitalist.
[ May 15, 2003, 19:49: Message edited by: geoschmo ]