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WAKE UP AMERICA! - CHAPTER ELEVEN

AMERICA - CAPITALIST OR COMMUNIST?

By "capitalism" I mean an economic system characterized by private property and voluntary exchange. By "communism" I mean an economic system characterized by public property and compulsory exchange. The myth that the America is a "capitalist country" is widespread. According to the Communist Manifesto by Marx and Engels (first published in 1848), the following ten steps are necessary for a communist takeover:

  1. "Abolition of property in land and application of all rents of land to public purposes.
  2. A heavy progressive or graduated income tax.
  3. Abolition of all right of inheritance.
  4. Confiscation of the property of all emigrants and rebels.
  5. Centralization of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly.
  6. Centralization of the means of communication and transport in the hands of the state.
  7. Extension of factories and instruments of production owned by the state; the bringing into cultivation of wastelands, and the improvement of the the soil generally in accordance with a common plan.
  8. Equal liability of all to labor. Establishment of industrial armies, especially for agriculture.
  9. Combination of agriculture with manufacturing industries, gradual abolition of the distinction between town and country, by a more equitable distribution of the populace over the country.
  10. Free education for all children in public schools. Abolition of children's factory labor in its present form."

For each of these ten planks I now give the measures that could be interpreted as implementing the plank, as well as my "communist percentage," determined by the extent to which I think the plank has been implemented:

1. Abolition of Property Rights.

2. Heavy Progressive Income Tax

3. Abolition of Rights of Inheritance

4. Confiscation of Property of Emigrants and Rebels

5. Monopoly National Bank

6. Centralization by the State of Communication and Transportation

7. Extension of factories and instruments of production owned by the state; the bringing into cultivation of wastelands, and the improvement of the the soil generally

8. Equal liability of all to labor; Establishment of industrial armies, especially for agriculture

9. Combination of agriculture with manufacturing industries, gradual abolition of the distinction between town and country, by a more equitable distribution of the populace over the country

10. Free education for all children in public schools; Abolition of children's factory labor in its present form

The average for my "communist percentages" is 53.5%, that is, according to these criteria America is halfway between capitalism and communism. Note that for four of the most important criteria - education, communication, banking/currency, and taxation - my "communist percentages" are very high.

Note that the U.S. Constitution specifically empowers Congress to implement five of the communist planks. In practice, Congress has demonstrated its power to implement, at least to some extent, all the communist planks.

Also note that the two essential distinguishing characteristics of capitalism are private property and voluntary exchange. The U.S. Constitution gave Congress wide powers to violate private property and voluntary exchange. In practice, this is exactly what Congress has been doing. The Bill of Rights has slowed down Congress's march towards communism. But gradually the Supreme Court has been effectively dismantling the Bill of Rights. Today many courts rule defense based on the Bill of Rights inadmissible, particularly regarding tax matters.

Capitalism is individual power. Communism (including socialism and much of modern "liberalism") is coercive state power. Private property and voluntary exchange constitute individual power. Government ownership and regulation attempt to eliminate individual power.

The solution is for individuals to seize back the power they have relinquished. The next three chapters will tell us how.


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