Abstract

A small puzzle: the terms ‘capitalism’ and ‘socialism’ initially present themselves as contraries, the one affirming what the other rejects. However, once removed from the dictionary, they function otherwise. The theory of capitalism is very much contained within the science of economics. The positive theory of capitalistic institutions, but also its normative superstructure, rest most easily within the language and methodology of the economist. What distinguishes the free market? It is efficient ; allocation of factors of production are optimized ; individuals maximize their utility ; and so on. These are the terms with which justifications of capitalistic production typically begin – begin, and often end.