This video clip from the documentary video “Overview of America” explains differences between the major economic systems of free market Capitalism, Fascism, Naziism, Socialism, and Communism. It is explained that all types of economic systems include elements of “capital” and “property,” with differences between the systems being varying combinations of types of ownership and control of those two elements.

Following is a description of points made in the video clip:

— Most people are confused about the characteristics of major differing economic systems. During the 20th century, Americans were led to believe that a "great struggle" existed between the Capitalist and Communist worlds, but most people do not know what the defining principals of the systems are.

— One of the most basic aspects of any economic system is the concept of “capital,” which means “the means of production.” An example of capital is explained as a spear being made as the result of someone’s time and energy in order for that person to eventually be able to use to spear to catch fish to eat. Capital can be tools, machinery, and even people.

— By strict definition, every type of economic system is “capitalist,” including Communism. The difference between Communism and the American Capitalist type of systems lies in the ownership of the capital. Communist capital is “monopolistic and state controlled,” and American capital is “competitive free enterprise.”

— The term “free market” means a self regulating system in which all parties are completely free to transact with one another, and where force, fraud or injury damages one party, the government’s role is only to punish those who commit such offenses and to vindicate the rights of the other party, which protects the integrity of the free market.

— “Private Property” means private ownership and control of property being a key component in the free enterprise system. In order for ownership of private property to be complete, four aspects must be met— the person’s right for Title, Control, Use, and the Ability to Dispose. In a free market economy these aspects are unrestrained, as long as the person does not infringe on the rights of others. True ownership of property and freedom go hand in hand.

— Some basic differences exist between the two major types of economic systems. In the competitive free enterprise system, capital or property is both owned privately and controlled privately. In a monopolistic system, holding title to capital can be accomplished privately or by the state, however, the capital is controlled by the state or the elite few who control the state.

— The Communist Manifesto, which contains the basic program for all Communist and Socialists, explicitly preaches the destruction and abolition of private property. Karl Marx understood the power of controlling capital as have all Communists who have ever looked and still look to Marx as their leader. State controlled capitalism (Communism) always results in high prices and low quality, because the lack of competition offers no incentive to improve.

— On the other hand, hard working competitive free enterprise producers create low prices and high quality. Competition results in excellence, and always has.

— The various economic systems can be plotted along a spectrum representing amounts of government control in the market. The last century has seen four forms of state controlled economies on the far left of the spectrum: Fascism, Nazism, Socialism, and Communism. In each, the government controls the capital, with the difference among these being how much is owned outright by the government. Following are aspects of each:



— Two major types of configurations of goverment and economy types would be an Oligarchy with a monopolistic, state controlled economy, and a Republic with a competitive, free enterprise system economy. [ Note that the practical application of the Government and economy in the United States has been gradually shifting to the left on the spectrum from being a free enterprise Republic. See the article A Summary of the Booklet “Restoring the Rights of the States and the People”. ]

— The founding fathers knew that the system of a free market economy in a Republic which they designed would not last without without a certain degree of shared morality in the citizenry. James Madison cautioned, “limited government alone is inadequate for our nation,” and John Adams said “Our Constitution was made only for a moral and religious people, it is wholly inadequate to the government of any other.” George Washington said “.. reason and experience both forbid us to expect that national morality can prevail in exclusion of religious principle.” Benjamin Franklin said “Only a virtuous people are capable of freedom.. As nations become corrupt and vicious, they have more need of masters.”

— The alternative to Americanism is what has condemned most of the human race to live as slaves throughout the past millennium— with the ideas that rights are privileges dispensed by an Oligarchy, the nation’s capital and all economic activity being directed from a central power, morality being inconsequential, and security needing to be preferred over freedom and opportunity.

— It is explained that the United States continues to be steered off-course through the principals that led to it’s greatness being cast aside, and what is needed is a sufficient number of Americans getting involved to return the nation to having less government and more personal responsibility of citizens.