01/21/2025
John Locke is often cited as a foundational thinker for capitalism, but what he was actually writing about was a previous economic order, mercantilism.
Mercantilism:
• Property is seen as a tool to serve the state and national wealth.
• For example, landowners, merchants, and industrialists were expected to align their property use with the state's economic strategy, such as growing cash crops for export or supporting colonial expansion.
• Economic activities were often limited to benefit the nation, with property sometimes expropriated or taxed heavily for state projects like military expansion or infrastructure.
• The state has extensive control over property rights.
• Governments can impose tariffs, quotas, or laws dictating how property is used.
• Private property can be confiscated or repurposed if deemed necessary for national interests.
• Monopolies and exclusive trade rights often limit individuals' property use or access to markets.
Capitalism:
• Property is seen as a means of individual wealth creation.
• Owners have the freedom to use their property as they choose, whether for personal enjoyment, investment, or trade.
• The focus is on individual entrepreneurship and market-driven innovation, where property is leveraged to maximize productivity and personal profits.
• The state plays a “protective” role, ensuring property rights are upheld.
• Governments enforce contracts, adjudicate disputes, and “defend against theft or fraud.”
• Property rights are inviolable, with expropriation rare and typically requiring compensation (e.g., eminent domain laws).