# Is capitalism different from free enterprise? **URL:** \ **Category:** Great Debates\ **Created:** [December 15, 2005, 8:56pm UTC](https://boards.straightdope.com/t/is-capitalism-different-from-free-enterprise/335805 "2005-12-15T20:56:27Z")\ **Posts on this page:** 9\ **Page:** 1
**Author:** ![flintlock](https://avatars.discourse-cdn.com/v4/letter/f/cc9497/32.png) [@flintlock](https://boards.straightdope.com/u/flintlock)\ **Post date:** [December 15, 2005, 8:56pm UTC](https://boards.straightdope.com/t/is-capitalism-different-from-free-enterprise/335805/1 "2005-12-15T20:56:27Z")
We hear that Russia is picking on capitalists, but it seems that’s only those who are like the robber barons that the US fought off when they created all the anti-trust laws. Can rigning in capitalists with monopolistic tendencies actually be a way to promote free enterprise for all the other companies? ---
**Author:** ![smiling\_bandit](https://avatars.discourse-cdn.com/v4/letter/s/e9a140/32.png) [@smiling\_bandit](https://boards.straightdope.com/u/smiling_bandit)\ **Post date:** [December 15, 2005, 9:51pm UTC](https://boards.straightdope.com/t/is-capitalism-different-from-free-enterprise/335805/2 "2005-12-15T21:51:53Z")
You’re asking three distinct questions. Free Enterprise, more or less, refers to the ability of individuals to engage in free exhcange of goods and services. Capitalism refers to an economic system where by individuals pool or create capital to invest in promising enterprises. It arises naturally from certain conditions, the most notable of which is Free Enterprise; this is why they are generally understood to be the same thing in the modern sense, though not in the ancient (pre-1000 A.D.) > [@](#): > > Can rigning in capitalists with monopolistic tendencies actually be a way to promote free enterprise for all the other companies? Capitalism promotes monopolies when those are most efficient for the market. The problem with monopolies is that they tend to accumulate political (non-economic) power. Otherwise, Capitalism tends to be broken up or replaced naturally over time. This is because there is never a shortage of opportunity; only a shortage of capital. A monopoly is not attractive, capital-wise, but creates opportunities to profit from breaking it. There are some other situations where individuals have been so successful that it is not clear that outside factors could break their monopoly. I believe this is generally because they were so exceptionally good at finding opportunity in the first place no one could compete in capital. In any case, the “Robber Barons” were not obviously bad for America in retrospect. They had both good and bad points. As for Russia, I would not be eager to accept the state’s party line or favor the “Capitalists.” ---
**Author:** ![BrainGlutton](https://avatars.discourse-cdn.com/v4/letter/b/82dd89/32.png) [@BrainGlutton](https://boards.straightdope.com/u/BrainGlutton)\ **Post date:** [December 15, 2005, 9:55pm UTC](https://boards.straightdope.com/t/is-capitalism-different-from-free-enterprise/335805/3 "2005-12-15T21:55:13Z")
> [@smiling bandit](#): > > As for Russia, I would not be eager to accept the state’s party line or favor the “Capitalists.” Does the state even **have** a party line these days? ---
**Author:** ![jayjay](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jayjay/32/6765_2.png) [@jayjay](https://boards.straightdope.com/u/jayjay)\ **Post date:** [December 15, 2005, 10:08pm UTC](https://boards.straightdope.com/t/is-capitalism-different-from-free-enterprise/335805/4 "2005-12-15T22:08:45Z")
> [@BrainGlutton](#): > > Does the state even **have** a party line these days? It’s two long rings for Olga, two long and a short for Ivan, and three short for Katerina. ---
**Author:** ![Liberal](https://avatars.discourse-cdn.com/v4/letter/l/848f3c/32.png) [@Liberal](https://boards.straightdope.com/u/Liberal)\ **Post date:** [December 15, 2005, 10:14pm UTC](https://boards.straightdope.com/t/is-capitalism-different-from-free-enterprise/335805/5 "2005-12-15T22:14:30Z")
For whatever it might be worth toward your question, free enterprise in a classical liberal context (a la von Mises) means enterprise that is free from coercion. Capitalism, on the other hand, can be very coercive, particularly if it is institutionalized and tycoons partner with governers. ---
**Author:** ![Polycarp](https://avatars.discourse-cdn.com/v4/letter/p/82dd89/32.png) [@Polycarp](https://boards.straightdope.com/u/Polycarp)\ **Post date:** [December 15, 2005, 10:16pm UTC](https://boards.straightdope.com/t/is-capitalism-different-from-free-enterprise/335805/6 "2005-12-15T22:16:37Z")
> [@jayjay](#): > > It’s two long rings for Olga, two long and a short for Ivan, and three short for Katerina. What about Igor? ( **Smiling Bandit** did a great job on the serious answer I opened this to give; I might as well have some fun while I’m in here.) ---
**Author:** ![John\_Mace](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/john_mace/32/185_2.png) [@John\_Mace](https://boards.straightdope.com/u/John_Mace)\ **Post date:** [December 15, 2005, 10:50pm UTC](https://boards.straightdope.com/t/is-capitalism-different-from-free-enterprise/335805/7 "2005-12-15T22:50:31Z")
> [@Liberal](#): > > Capitalism, on the other hand, can be very coercive, particularly if it is institutionalized and tycoons partner with governers. Hence the term [“Crony Capitalism”](http://en.wikipedia.org/wiki/Crony_capitalism), of which Russia is probably a good example. ---
**Author:** ![smiling\_bandit](https://avatars.discourse-cdn.com/v4/letter/s/e9a140/32.png) [@smiling\_bandit](https://boards.straightdope.com/u/smiling_bandit)\ **Post date:** [December 15, 2005, 10:56pm UTC](https://boards.straightdope.com/t/is-capitalism-different-from-free-enterprise/335805/8 "2005-12-15T22:56:40Z")
> [@](#): > > by **smiling bandit** > Otherwise, Capitalism tends to be broken up or replaced naturally over time. This should read, “Monopolies tend to be…” > [@](#): > > by **Brainglutton** > Does the state even have a party line these days? Putin does, anyway. ---
**Author:** ![Liberal](https://avatars.discourse-cdn.com/v4/letter/l/848f3c/32.png) [@Liberal](https://boards.straightdope.com/u/Liberal)\ **Post date:** [December 16, 2005, 5:28pm UTC](https://boards.straightdope.com/t/is-capitalism-different-from-free-enterprise/335805/9 "2005-12-16T17:28:27Z")
> [@John Mace](#): > > Hence the term [“Crony Capitalism”](http://en.wikipedia.org/wiki/Crony_capitalism), of which Russia is probably a good example. Russia? Sure. But I think the US is a good example as well. That’s what pork is for.