Capitalism, unlike a caste system, is not based on rigid, distinct social classes.  While individuals may amass wealth, this is not due to their birthright or inherent status but to their ability to meet the demands of consumers.  In a capitalist society, wealth is earned by creating value—by providing goods or services that others are willing to pay for.  Entrepreneurs and capitalists do not maintain their wealth indefinitely.  They must continually innovate and persuade consumers to choose their products.  If someone else develops a superior offering, they can quickly lose their market share.  This fluidity is a key feature of capitalism, where success is contingent on consumer satisfaction rather than rigid, unchanging hierarchies.

In contrast, a caste system locks individuals into predetermined roles, with wealth and power often inherited rather than earned.  Historically, people born into wealth remained wealthy because of their connections to the ruling class, not because they served the broader needs of society.  Exceptions, such as figures like Beethoven, who rose above their stations, were rare and not representative of the system as a whole.  Under capitalism, however, there is no formal division between rich and poor.  These categories are dynamic, with individuals able to move between them based on merit and effort.

Unfortunately, as political forces gain influence, we see the re-emergence of caste-like structures in modern society.  This new caste system is not based on traditional class lines but on divisions imposed by the political class.  Rather than the ruled being united, they are divided by artificial groups created by those in power.  Politicians exploit envy, encouraging different factions of society to see each other as enemies.  This tactic ensures that the masses are too fragmented to challenge the political class itself, which benefits from maintaining power through division.

Today’s privileges are no longer confined to a hereditary elite; instead, they shift to a small, interchangeable group at the top of the political hierarchy.  The essence of the system remains unchanged: the political class operates above the law, enjoying special privileges that the average citizen does not.  Under capitalism, by contrast, every individual is subject to the same natural laws and must abide by the same rules.  The current system, however, places the masses beneath a layer of privilege enjoyed by a select few.

This modern caste system thrives on collective envy.  By keeping different groups focused on their own grievances, the political class ensures that no unified opposition arises.  It’s a strategy designed to prevent the masses from realizing that their real adversaries are those above the law, the parasites who live off the productive efforts of others.  Rather than directing their frustrations toward one another, society’s discontented groups would do well to unite against the system’s true beneficiaries—the parasites who manipulate and exploit envy to maintain their grip on power.

References

Ludwig von Mises; The Anti-Capitalist Mentality

Gonzalo Fernández de la Mora; Egalitarian Envy