Session 15-Capitalism and Enterprise Capitalism, opposing terms?

Capitalism can be classified into three systems: enterprise capitalism, social capitalism and collective capitalism.

Capitalism is a social system based on the principle of individual rights. Politically, it is the system of laissez-faire (freedom). Economically, when such freedom is applied to the sphere of production its result is the free-market i.e. a market in which trade and industries are controlled by private owners for profit, rather than by state. Now, what does “Free Enterprise” Capitalism mean? As most of the classical economists including Adam Smith and David Ricardo have said that the central belief of Enterprise Capitalist system is the faith in unrestricted working of market competition born out of belief that market is a self-regulating mechanism. Most of the information about “Free Enterprise” promotes the idea that it is an economic system that enables competition with minimal government interference. They are of the view that competition is healthy for the economy.

 The interesting thing about this definition is that “Free Enterprise” directly conflicts with the objectives of Capitalism, i.e. private business motivation to make profit without interference. The idea that “Free Enterprise” enables competition with minimal government interference is contradictory and fallacious because the only way to enforce “Free Enterprise” governance on our capitalistic system is through government laws and regulations.  For example if there is a company who has monopolized the market and has fixed prices and is intimidating entire regions of the country economically and politically.  The government then has to pass laws to prevent companies from being monopolies and dominating entire market segments. Monopolies are logical outcome of capitalism and “Free Enterprise” without governance rules which force businesses to compete in an open market place. Hence the people who say that capitalist state will take care of itself and government isn't necessary might not be aware of the fact that these two terms oppose each other.