1/ There are really only three political forms. What confuses people is that they are divided between manifestations in government and manifestations in economics, creating a total of six versions. The six forms are; Feudalism and monarchy Capitalism and democracy
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Anarcho capitalism and piracy
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2/ To understand this simply realize that each stage represents various levels of competition. Under feudalism the state owns the entire economy. This is why communism and feudalism are essentially the same thing under a different name, and why communism always produces fascism.
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3/ Under feudalism the king owns both the state and economy, and "sublets" his property to various lords or bureaucrats. In contrast, democracy is a marketplace for the purchasing of laws. It is a competitive rent-seeking market run for the benefit of lobbyists.
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Democracy of course embraces a limited form of capitalism that is overtaxed, overregulated, etc. "Neoliberalism is the ideology of having only enough capitalism to support the welfare state."
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4/ Finally we reach anarcho capitalism, which is the most competitive form of government and naturally has the most competitive form of economics: piracy. It is not a coincidence that the Medieval Iceland Republic had Vikings, while Somalia has pirates.
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5/ Capitalism is NOT the most competitive form of itself: piracy is. Capitalism involves mostly secure property rights. Now what I have described is three pure archetypes; feudal monarchy, capitalist democracy, and pirate anarcho capitalism.
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6/ People get confused because must of the world's regimes are mixed types. Dubai combines capitalism with monarchy. N. Korea is a pure feudal monarchy but doesn't yet have hereditary offices, and calls itself communist. America is moving towards a feudal form of economics but
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7/ still maintains the pretense of being a democracy. A lot of nations are "mixed" because historical processes do not allow them to admit what they are. So the continue to be other things well into their transformation.
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