There’s a lot of misuse of the word “capitalism.” Anything that needs a qualifier—like “bailout capitalism” or “crony capitalism”—probably isn’t capitalism at all.  People often confuse capitalism with things like bailouts and preferential policies, but true capitalism doesn’t involve these. Misusing the term can lead to a misunderstanding of what capitalism really is. Capitalism poses a threat to statism, so it’s attacked from many angles.

Under capitalism, people are free to pursue their own goals. Statist measures, on the other hand, create artificial barriers. Capitalism is about mass production for the masses. While big business is often criticized—sometimes justifiably—not all big businesses are the same. Some have grown large because they’ve succeeded in meeting the needs of the public. Others have become or remained big due to preferential treatment.

A brief history of the term “lobby”: Over 100 years ago, people would wait in the lobbies of government buildings to bribe politicians. Grover Cleveland popularized the term “lobbyist,” although he didn’t coin it. Essentially, it’s a job description for someone who bribes politicians professionally.

The power of big businesses in a capitalist system comes from people voluntarily spending their money with them. This changes when a company bribes politicians for preferential treatment. Such businesses gain an unfair advantage over competitors, reducing consumer choice. They can then lower quality and/or raise prices, and people are stuck with fewer options. That’s not capitalism—it’s statism.

The negative portrayal of capitalism often comes from those threatened by the public’s rising standard of living. This misrepresentation is repeated by shills and many who unknowingly act as pawns for others. For example, higher prices are often blamed on capitalism, but that’s actually a result of statism—specifically inflation caused by central banks. I have a whole section of articles on that. Don’t let yourself be used as a pawn in someone else’s game. Life isn’t a game.

Reference

Ludwig von Mises; Economic Policy