Capitalism is private ownership.  Socialism is government ownership.  Fascism is government control.  Statism is some combination of socialism and fascism.  Nearly all are statists whether they think so or not.  Under fascism, the terms of capitalism are retained.   That will give it the appearance of capitalism, but it’s definitely not, don’t confuse the two.  What about communism?  Well, socialism is used to get to communism, which is Marx’s utopia.  Of course, statists of all stripes will say it wasn’t “real,” but statism is statism.  The fundamentals are the same.

The entrepreneur is one who uses saved up money to create new goods.  There are not entrepreneurs outside of capitalism.  Superficially, it may seem like the entrepreneur is deciding what goods to create.  He is not.  He creates goods based on the demands of the public.  The products have to be sold.  If they are not, liquidation is around the corner if correct adjustments are not made.  Now, when a company liquidates, the capital goods don’t disappear.  They switch hands to more efficient producers.

It’s much different in a statist economy.  If demand is not accurately predicted, does the company liquidate?  Not necessarily.  They have to have friends in certain positions.  If they don’t, they will have to be liquidated.  If they do, they will get bailed out.  Under capitalism, losses are suffered by those involved, meaning, there are no bailouts.  Under statism, losses aren’t suffered by those involved, the masses suffer other’s losses.  How are companies bailed out?  As stated above, the masses pay for this.

 It could come from tax revenue, borrowing, or printing.  The masses are paying for it in all cases.  Tax revenue: the money is taken directly from the public.  Borrowing: the bailout funds are taken out on a loan and paid for by the public in the future.  Printing: the money is taken directly from your account.  The third way is the most insidious.  In the first two cases, money will have to be taken from the public, which is seen.  In the third, it’s not seen, prices rise, and the business cycle is set into motion, or made worse.  In all cases, the public will be paying for goods they don’t want.