17. Capitalism

Capitalism's critics and defenders tend to talk past one another because they understand the term differently. “Capitalism,” according to James M. Buchanan (2005:29), is an “unfortunate but widely used term again loosely described in terms of the range and scope for individual liberty outside collectivized direction and control.” As capitalism has never existed entirely separate from government, it has come in many forms, including crony capitalism, political capitalism, state capitalism, and entrepreneurial capitalism. We focus on understanding capitalism in the classical liberal tradition.