Entrepreneurialism is rational but capitalism is intellectual but they are often confused with each other. The distinction is based on two different ways of thinking. Capitalism is by definition wasteful because it is premised on an individualist mind-set and this is divorced from reality. For us reality is enmeshed in community. Entrepreneurs are focused on Community. It is in helping others that we obtain definition and true identity. Entrepreneurs pay all  his or her costs whilst a capitalist transfers some of the costs he or she creates onto society.

There are two types of wealth and two ways of producing it. Entrepreneurs create wealth by focusing on community and what it needs - entrepreneurs create assets. Capitalists create wealth as measured in and in the form of money. This easily degenerates into selling worthless paper as securitized debt. Where wealth ceases to be based on the production of real goods is where entrepreneurialism becomes Capitalism. As is easily imagined it does not take much for the one to transform into the other. Indeed most business people start off as entrepreneurs and upon success focus more on producing wealth for wealths sake.

However, the real problem is not Capitalism it is our debt-based monetary system for it is the use of debt-based money that tempts wealth-creating entrepreneurs to become debt-creating capitalists. Love of money reduces rationality to intellectuality. Intellectuality is the serpent in the economic Garden of Eden.

Using debt to create wealth is contradictory.  The world cannot pay back this debt without eliminating economic activity except that which can be done with barter. Nor can we as a nation and individuals keep on borrowing without restraint becomes uncontroled debt makes money worthless. So the economy surges ahead as debt grows until the debt becomes unmanageable and the value of the currency begins to fall then economic activity collapses as borrowing is reigned in and the debt is paid down.

We need to analytically separate entrepreneurism from capitalism to provide a solution to this impasse. Entrepreneurs create wealth by creating assets. Assets increase the wealth of the world. But unless entrepreneurs have access to debt-based money this asset-creating impulse is stymied. A simple activity such as painting a house becomes an insurmountable problem if the homeowner has insufficient access to the nations money supply. This is silly to the point of treason. Which citizen has the right to prevent another citizen from getting his or her house painted when it gives work to another citizen and this exchange of goods and services between citizens is the basis on which the nations existence depends?

 

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Capitalism And Entrepreneurialism