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Difference Between Capitalism and Corporatism

Capitalism vs Corporatism

Capitalism is a social and economic system which recognizes individual rights, including the right to own properties and the possession of goods for the individual’s personal consumption. Corporatism, on the other hand, is a form of economy that was created as an option to socialism and intends to achieve social justice and equality without the need to take away private property from individual members of society. It stresses the positive role that government has in ensuring social justice while restraining social unrest as people look after their self-interests.

The key player in a capitalist economy is the individual or a groups of individuals. They are given equal opportunity in competing as buyers or sellers of property or goods in a free market without the intervention of the government except for rules and regulations that maintain a level playing field. The trading of goods and services are independent actions of the individuals. There is no room for aggression in a capitalist society. The heart of a corporatist economy, on the other hand, is the political community that must reach its full potential to enable individuals of society to attain self-fulfillment and happiness.

Capitalism allows individuals unlimited opportunities in creating wealth for themselves and own as much properties and goods that they can afford to buy. This results in inequality that can eventually motivate individuals to work for more wealth to catch up with other individuals. Individuals are, however, to respect the rights of other individuals and avoid coercion. All forms of aggression against another individual are considered illegal.

In comparison, corporatism is a collectivist society just like socialism. Corporatism, however, only nationalizes private property in fact and not by operation of law. It blends capitalism and socialism in governing society and the economy. As such, it allows private businesses to operate within tolerable limits while prioritizing and promoting major projects of the state. The government justifies the creation of public ventures claiming that there are no takers of certain projects that are essential to the people from the private sector because the projects are huge and require a large amount of investment that the businessmen cannot afford.

In terms of labor issues, capitalism resolves labor questions through collective bargaining where representatives of management and the labor union sit together to reach an agreement on the issues. Corporatism, on the other hand, organizes labor and management into major interest groups or corporations to negotiate problems including labor issues through their representatives.

Both capitalism and corporatism are still practiced today and even co-exist and are adopted by politicians as advocacies.


1. Capitalism is an economic system that recognizes individual rights while corporatism is a political and economic system that seeks social justice and equality among individuals.

2. The key player in a capitalist society is the individual who must work for his own well being while the central figure in a corporatist society is the political community that must work for the individual’s self-fulfillment and happiness.

3. Capitalism is an individualist society while corporatism is collectivist.

4. Labor issues in capitalism are resolved through collective bargaining while corporatism tackles such issues through negotiation.

5. Both capitalism and corporatism are still in use today.

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  1. I wrote about corporatism recently on my website.

    It all started to go down hill when Corporations became protected under the Bill of Rights and the 14th amendment as “Natural Born Citizens” this gives them the right the petition the government and all other rights of an individual citizen.

    It was not always like this, i go into much more detail in my article here:

    I take an early look at the history of corporations in America and give a few different examples from the modern era. I thought you might want to take a look at this. Thanks for the good read.

    • Who cares about the Bill. The Corporatism will still rise no matter what (sooner or later). Ignore those stuff.
      Too many people looking for Jobs and fighting for products.

    • I just watched a very interesting documentary on NetFlix.

      It is called “Nietzche and the Nazis”.

      The two philosophies are compared.

      The Nazis thought that they based a lot of their way of doing things on Neitzche’s thoughts.

      But Neitzche had other reasons for saying what he did.

      I knew a fair bit about the Nazis, but not very much about Neitzche.

      The objective of the movie was to try to convince us not to do the same things the Nazis did.

      As the movie played, it occurred to me that the combination of Corporatism and the far right Tea Party ARE looking a lot like the Nazis did.

      I think we could be heading for serious trouble if Corporatism and the Tea Party take over our government.

      As a result, I Googled “Corporatism versus Capitalism”.

      That Google search showed me that comparing Corporatism and Capitalism just confirms how we could be headed for serious trouble.

      I recommend that you watch the movie and make your own comparison.

      Then act and vote accordingly. I think it could be our last vote. It was for the Germans in the 1930s.

      • >Then act and vote accordingly. I think it could be our last vote. It was for the Germans in the 1930s.

        Yes, they never voted since -.-

        How about “Your life may depend on it”? “It could be the end of democracy *as we know it*”? You know, things that are both dramatic _and_ true…

      • I think you’re confusing your terms (most people seem to think corporatism is a component of capitalism… it is not). In your example, the Tea Party would be supporting individual liberties… that is capitalism, not corporatism.

      • Ugh…it’s literally the opposite. It’s the leftist elites

    • You are absolutely correct. SCOTUS turned the table on us starting with Buckley v Valeo -where our 1st Amendment rights were applied to corps. And made it worse since Citizen United & a number of subsequent campaign finance, bribery, public corruption cases in state & federal court.

  2. A few notes on Neitzche: He severed his relationship with both Wagner and his sisters husband because of their proto-nazi beliefs. Also “Will To Power” is not Neitzche, its a collection of his discarded notes compiled by his sister (a proto-nazi herself) who also added much of her own philosophy in as well.

    However Neitzche also went on at length talking about how nasty “The Group” can be.

    Corporatism empowers the mob and by proxy empowers the megalomaniacs who seek to control the mob, while Capitalism empowers the individual. The group truly is an ugly thing, its like a stampede that only needs something to send it in the direction of its next victim.

    Nazi’s as a group killed millions, no individual has ever come close.

    • Stalin has killed MILLIONS and made many *vanish* if they disagreed.

      People have been *ran over* by the trucks that bring road tar and cement people’s bodies under communism.

      All nations have mountains of skulls over communism but let’s just let the powers to be remain drunk with status and titles.

      We’ll worry about the mounting death tolls later.

  3. The only difference in between capitalism and corporatism is that, corporatism does NOT exist ….


    Your first paragraph is hilarious : capitalism recognizes individual rights.

    How are you going to have individual rights when entire water resources, farmland or other strategically important resources are owned by few private wealthy individuals.

    Dont answer – you are not going to have any such rights. Just like how today you dont have any, in the current, CAPITALIST economy.

    • You seem to be confused. We are not a CAPITALIST society anymore, we have moved to CORPORATISM. Before government intervention and a “planned economy” were implemented, our society worked and lots more people had way more opportunity to advance and move up the ladder. Today’s environment has become way more corporate with less opportunity for the individual to improve his lot in life. The only thing corporatism guarantees is equality of misery.

    • Do you even know what corporatism is? A genuine capitalist society is not what you claim capitalism to be. A capitalist wouldn’t like the current economy unless they are already rich. Not the wealthy the RICH 8 fig plus. However if the rich actually liked capitalism they would know they face repercussions. They don’t support capitalism. Corporatism is the control of state directly or indirectly by large intrest groups. If you know what a lobbyist does, and how CORPERATIONS use them, you’d realize that this isn’t capitalism, because a capitalist society wants MINIMUM regulation from both sides aside from mandatory regulation. We live in a borderline corporatist society. We are indirectly controlled by corporations and politicians that won corporations, stocks, property ect. This isn’t a capitalist society

    • Come on don’t be silly, it’s corporations that own that.

  4. Quit trying to wake people up on the difference between capitalism and corporatism. Just let the wonkers have their party and be drunk both literally and symbolic with power.

    They don’t want to hear the *doom* and *gloom* crap even if it’s true.

    Humanity needs to go thru a massive reset then we can rebuild.

  5. This article unfortunately presents somewhat of a bias toward capitalism. An example: “The government justifies the creation of public ventures claiming that there are no takers of certain projects that are essential to the people from the private sector because the projects are huge and require a large amount of investment that the businessmen cannot afford.” This sentence implies that the government is inherently duplicitous.
    Corporatism should not to be confused with a corporatocracy which is an inadequately regulated version of capitalism. In the US we have mix of capitalism(private ownership), corporatism(private companies controlled by the government), corporatocracy(private companies who have more power than the government), and socialism(police, fire departments, etc.). We are currently dominated by the corporatocracy. The medical industry is a good example of corporate domination of an industry that should be viewed as infrastructure which distributes its value to the nation’s citizens but instead feeds corporate coffers. The amount of money allowed to influence government policy is an indicator of the government’s loss of control.

    • It wouldn’t matter since corporations have bought and own a majority of US debt. We will be indebted to them for eternity

  6. Who is Rolando? What are his credentials? What are his affiliations? This article sounds like libertarian propaganda to brainwash working class boys into thinking corporatism is a good thing. This is complete BS, boys. Nether capitalism or corporatism work to attain social justice.

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