Rethinking the clash between Socialism and Capitalism.

September 4, 2024 - The ideological clash between socialism and capitalism is often presented as a binary choice, with proponents on both sides arguing that their preferred system offers the best solution for society. This simplistic left-right view misses a crucial element: it’s not the ideology itself that determines whether a system is moral or not, but whether it is based on voluntary participation and bound by ethical constraints like the Non-Aggression Principle (NAP).

The NAP opposes theft, assault, fraud and vandalism, making it clear that no individual or group has the right to initiate force against others. When applied to economic systems, this principle shines a light on how both socialism and capitalism can either promote freedom and voluntary cooperation - or become mechanisms of tyranny. The key difference between moral and immoral systems lies not in whether they are left- or right-wing but in whether they rely on force or voluntarism.

Democide: The Dangers of Authoritarian Socialism and Capitalism

R.J. Rummel, in his book Death by Government, coined the term democide to describe the murder of people by their own government, which encompasses the atrocities committed by both socialist and capitalist regimes. The 20th Century, in particular, saw an unprecedented level of state-sponsored violence, leading to the deaths of over 262 million people. These deaths occurred not through war but through internal purges, genocides, forced labor camps, and starvation policies carried out by governments across the political spectrum.

Socialist governments, such as those under Stalin, Mao and Pol Pot, were responsible for some of the highest death tolls. The forced collectivization of agriculture, for instance, led to widespread famine and millions of deaths. Political purges eliminated perceived enemies, often through executions and labor camps. Socialism’s inherent focus on central planning and state control inevitably leads to coercion when people are forced to surrender their property and resources to the collective. While the rhetoric may promise equality, the reality often manifests in oppression and death.

Capitalist governments have also been responsible for significant atrocities, particularly through imperialism, colonization and cronyism. When capitalism becomes unbound by ethical constraints like the NAP, it can lead to exploitation, monopoly, and the use of state violence to protect corporate interests. Historical examples include European colonial empires, where capitalist powers engaged in genocide and brutal suppression of native populations. In the United States, the government-backed removal of Native Americans and the horrors of slavery further illustrate the potential for capitalist systems to violate the NAP when force and coercion are employed.

Both socialist and capitalist governments have proven capable of committing democide when they abandon voluntarism and the NAP in favor of authoritarian control. The moral question, then, isn’t about whether socialism or capitalism is inherently better but whether either system respects individual freedom and refrains from initiating force.

The Nolan Chart: Moving Beyond Left and Right

The traditional political spectrum - focused on left and right - often fails to capture the full range of ideological possibilities. Most people are familiar with this horizontal spectrum, where the left is associated with socialism, collectivism and state control, and the right with capitalism, individualism and free markets. This simplistic view obscures the fact that both the left and right can lean either authoritarian or libertarian.

The Nolan Chart, developed by David Nolan, expands the political spectrum by adding a vertical axis, creating a two-dimensional grid. The horizontal axis still represents economic freedom, with socialism on the left and capitalism on the right. The vertical axis, however, measures personal freedom, with authoritarianism at the bottom and liberty at the top. This framework clarifies that both socialism and capitalism can exist in either authoritarian or libertarian forms.

• Authoritarian socialism involves state control over both the economy and personal life, as seen in regimes like the Soviet Union or Maoist China. It demands coercion to enforce redistribution and conformity to state policies, often leading to democide.
• Authoritarian capitalism exists when economic freedom is limited by a powerful state that supports corporate interests through cronyism, monopolistic practices or imperialism. Examples include fascist regimes, which favor private ownership but are heavily controlled and directed by the state.
• Voluntary socialism, on the other hand, allows individuals to choose collective or cooperative arrangements without coercion. An example would be communes or worker cooperatives where participation is entirely voluntary, and property is not forcibly seized.
• Capitalism under the NAP refers to a system of free markets where voluntary exchange and private property are respected, but no force, fraud or coercion is used. This version of capitalism aligns with agorism, a libertarian philosophy that advocates for peaceful markets operating outside of state control.

The Nolan Chart exposes the fallacy of viewing politics solely through a left-right lens. The real divide isn’t between left and right but between coercion and voluntarism - between authoritarianism and liberty.

Agorism: The Voluntary Free Market

Agorism, a form of Anarchism and libertarianism, envisions a society where all interactions are voluntary and free from state interference. It aligns with capitalism bound by the NAP, emphasizing free exchange, private property and entrepreneurship without coercion. Unlike crony capitalism, where businesses seek government favors or subsidies, agorism rejects the state entirely, advocating for a black or gray market that operates independently of government control.

In an agorist society, individuals engage in peaceful trade, producing goods and services without the interference of taxes, regulations or licensing laws. The black market, often vilified by governments, becomes a moral and necessary space for free exchange in agorism. Participants adhere to the NAP, meaning they do not initiate violence or fraud, and all transactions are based on mutual consent.

The appeal of agorism lies in its commitment to non-violence and its rejection of both state socialism and state capitalism. It offers a model for voluntary cooperation, where people are free to pursue their own economic interests while respecting the autonomy of others. Without the state to enforce monopolies or redistribute wealth through coercion, agorism fosters innovation, competition and individual responsibility.

Voluntary Socialism: A Moral Alternative

Just as capitalism can be ethical under the NAP, so can socialism - if it is entirely voluntary. Voluntary socialism allows for collective ownership, communal living and cooperative workplaces, but only for those who willingly choose to participate. In this system, individuals retain the right to private property and self-determination, but they can freely join or form socialist collectives if they prefer.

Examples of voluntary socialism can be seen in worker cooperatives, where employees share ownership of the business and profits are distributed equitably among members. Another example is intentional communities or communes, where resources are shared, and decisions are made collectively. As long as participation is voluntary and no one is forced into these arrangements, socialism can exist without violating the NAP.

Voluntary socialism respects individual rights because it does not rely on state enforcement. People are free to join or leav these collectives as they see fit, and the resources within the collective are pooled by choice, not through coercion or confiscation. In this sense, voluntary socialism aligns with the values of personal liberty and mutual aid, offering a moral alternative to state-enforced collectivism.

Binding Capitalism to the NAP

Capitalism, when constrained by the NAP, becomes a moral system of voluntary exchange. The NAP ensures that no individuals or businesses can initiate violence, fraud or coercion to achieve their goals. In this model, the market operates freely, but ethical boundaries prevent the exploitation or manipulation of others. Competition is fair, and transactions are consensual.

Without the NAP, capitalism can devolve into cronyism, monopolies and exploitation, as businesses seek government favors, subsidies, or protection from competition. This perversion of capitalism undermines the very principles of free exchange and individual liberty. The NAP restores balance by ensuring that all market actors respect each other’s rights.

Capitalism under the NAP supports private property, entrepreneurship and innovation while protecting individuals from the initiation of force. It ensures that no one can use violence to accumulate wealth or power, making it a moral system of economic organization. When the market is free and voluntary, it fosters prosperity and freedom without the abuses of state capitalism or socialism.

The Vertical Spectrum of Liberty vs. Coercion

The debate between socialism and capitalism is often reduced to a false binary, where proponents of each ideology accuse the other of immorality. However, the real divide is not between left and right but between authoritarianism and liberty - between coercion and voluntarism. Both socialism and capitalism can be moral systems, as long as they operate voluntarily and respect the Non-Aggression Principle.

R.J. Rummel’s concept of democide reminds us that state power, regardless of ideology, leads to mass murder and oppression when unrestrained by moral principles. The lesson is clear: no system, whether socialist or capitalist, should rely on force or coercion to achieve its goals.