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Spencer Neff

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02:40 pm: Suppose I were to invent a new word, "zaxlebax," and define it as "a metallic sphere, like the Washington Monument." That's the definition — "a metallic sphere, like the Washington Monument." In short, I build my ill-chosen example into the definition. Now some linguistic subgroup might start using the term "zaxlebax" as though it just meant "metallic sphere," or as though it just meant "something of the same kind as the Washington Monument." And that's fine. But my definition incorporates both, and thus conceals the false assumption that the Washington Monument is a metallic sphere; any attempt to use the term "zaxlebax," meaning what I mean by it, involves the user in this false assumption. That's what Rand means by a package-deal term.

Now I think the word "capitalism," if used with the meaning most people give it, is a package-deal term. By "capitalism" most people mean neither the free market simpliciter nor the prevailing neomercantilist system simpliciter. Rather, what most people mean by "capitalism" is this free-market system that currently prevails in the western world. In short, the term "capitalism" as generally used conceals an assumption that the prevailing system is a free market. And since the prevailing system is in fact one of government favoritism toward business, the ordinary use of the term carries with it the assumption that the free market is government favoritism toward business.

And similar considerations apply to the term "socialism." Most people don't mean by "socialism" anything so precise as state ownership of the means of production; instead they really mean something more like "the opposite of capitalism." Then if "capitalism" is a package-deal term, so is "socialism" — it conveys opposition to the free market, and opposition to neomercantilism, as though these were one and the same.

--From Robert Long's Rothbard memorial lecture


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