Free Enterprise Capitalism versus Monopoly Capitalism

The millions of people who have lived in America have enjoyed a unique form of free market capitalism coupled with a republican form of government that protects private property. We Americans own our businesses, hold title to them and we have the ability to dispose of it as we choose. We can donate our wealth, give it away or squander it if we so desire. In a monopoly capitalist system as Cuba's no one owns anything. Even the people are the property of the government.

The free enterprise system has produced the greatest wealth the world has ever known. The key to it all is that the capital has been in the private hands of millions of people and not concentrated in one location like a socialist bureaucracy. The other form of capitalism is when the capital (the means of production) is controlled by the government or the few who run the government. That system impoverishes everyone except those at the top.

The most common forms of monopoly capitalism beginning in the 20th century; history books label them as: communism, nazism, fascism and socialism.

It is these forms of state monopoly that have led to poverty and misery for those who have lived under those forms of monopoly capitalism. It is those forms of state monopoly that lead to shortages and shoddy goods and services. Those who own all the capital aren't under any pressure from consumers to produce anything of quality nor worry about things that free market capitalists worry about such as customer relations, production control, qualilty control, overhead and marketing, etc.

The socialist use capital ( machinery, tools, factories, farm equipment, oil rigs, computers, etc.). But the key to understanding the difference between a socialist's capitalistic system and a free enterpriser is who owns and controls the capital.