Libertarianism is a political doctrine that uphold freedom of choice, political freedom, voluntary association and the primacy of individual judgment. The political philosophy that welcomes all diversity of thoughts and hold the individual as the best judge of his own actions and decision as long as force and fraud does not interfere.
Capitalism is an economic concept where the all the factors of production or resource are owned by individuals and important decisions as to what to produce, how to produce, and for whom to produce are taken by the private individual with the aim of maximizing profit. Capitalism allows the rational use of resources owned by individuals in the production of goods and service at a lower cost of production in order to maximize profit.
Libertarianism underlying principle is freedom of the individual to make choices. This principle is keen in capitalism since all resources are owned by someone and such a person at liberty to make his own production decision. My understanding to Libertarianism as a capitalist ideology has assertion as follows;
To begin, libertarianism is a tool for the functioning of capitalism. For capitalism to function in the society then there has to be a curtailment of absolute power in the government. Government over the years has perpetuated their coercion in a form of social collectivism. With libertarianism, individual empowerment has tend to see a greater good in the society. The aggregate of individuals constitute the society. Therefore if all entities within the society are better off then there is a greater good within freedom than social collectivism. Capitalism in its function needs an environment where individuals decision won’t be curtail. The decision of individuals are based on the ability to reason which has the tendency of developing innovative ideas for development.
Also, in libertarianism, the role of government is to protect right and use retaliation coercion to protect individual. Government protection of the source of right including right to life and right to property backed by law gives individual the confidence to develop their intellect. Production is the application of reason to the problem of survival (AYN RAND INSTITUTE). The development of intellect of individual entrepreneurs breed solutions to the impediment of man survival. When this happens the application of the solution help create jobs, create wealth, increase individual income and in the long run there is progress in the society.
Furthermore, the use of persuasion, contract agreement, quality of goods or service at lower price rather than force or fraud is the necessity for the development of Capitalism. Libertarianism does not dictate one line of action but allows the diversity of thought in all endeavors as long as force and fraud does not apply. In the competitiveness of capitalism, the value of wealth and its creation lies in the decision of individuals. For an entrepreneur to create wealth, then individuals must find value in his intellect in a way of solving problems for man survival or bring new innovations.
In conclusion, libertarianism as a capitalist ideology is a necessary requirement for the function and operational frame work of capitalism. The free will of individual as long as it does not infringe others freedom is needed for all effective production decisions and the utilization of resource.
Article by Nathaniel Dwamena, Programs Manager, YAFO