I am not sure if I am adding anything to this discussion. However, I think we should be clear on definitions. The first steps in any academic argument must be to agree on (a) a priori assumptions and (b) definitions of terms. Leaving aside a priori assumptions for the moment (for we can’t even expose and examine a priori assumptions without agreed terms) [1], what are our definitions of capitalism, capital and capitalization?
1. Capitalism
Is the Wikipedia definition for Capitalism serviceable here? “Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private property, property rights recognition, voluntary exchange, and wage labor. In a market economy, decision-making and investments are determined by owners of wealth, property, or ability to manoeuvre capital or production ability in capital and financial markets—whereas prices and the distribution of goods and services are mainly determined by competition in goods and services markets.”
When we look at the Wikipedia definition in Wikipedia, we note that a whole list of terms in this definition have color-highlighted. underlined links. These further definitions are essential ingredients to understanding the “capitalism” definition. I’ve sometimes been faced by arguments that capitalism is non-existent, as a system, because it is not pure and not ubiquitous. The biggest plum pulled out of this magic pudding is the mixed economy argument. This argument is much like saying policing does not exist because it is not pure and not ubiquitous.
It is now commonly asserted that capitalism is a global system. I concur. This is despite the fact that it is not pure and not ubiquitous. Purity and ubiquity are not possible for any finite system in the cosmos or in the world. Any system is always embedded in something that is “all systems together” (the monistic totality) and we can always note combinations, conglomerates, agglomerates. The best analogy (and it is not just an analogy but a monistic homomorphic congruence) is a net. Capitalism extends its net, of connections, and (dynamically) nets the world. It hasn’t netted the whole world. Small stuff gets through. Big stuff breaks through, tears the net. But ever the net is expanded, repaired, meshed out autocatalytically, to use Ulf Martin’s applied term. Ultimately, large fundamental forces can (and will) “explode” the net or rapidly unravel the net but that is another topic. Looking back in time (which is more the issue here), we can nominate capitalism’s starting point, with an agreed comprehensive definition of capitalism.
2. Capital
Next we get to the definition of “capital”. Here, “CasP (Capital as Power) already has a problem with classical economics encompassing capitalist economics and Marxist economics.
Note 1 – And our agreed terms can already contain unexamined a priori assumptions. How do we deal with that? I would argue that we can only do that iteratively, after provisionally agreeing on terms, by then examining the set of currently agreed terms, currently agreed principles and currently agreed methods. Thence we find anomalies (internal inconsistencies) and lacunae and then resolve them if possible. We keep trying to iron out and mend our investigative system out until we agree we can find no more wrinkles and no more holes, for the present at least. Then we apply it to the real world for the necessary empirical testing.