"Since rights can only be violated by initiating force, the government would only use force in retaliation of those who initiated it" (2). In a proper capitalist nation, a constitution based upon individual rights would be necessary to limit the actions of its citizens and the government. Under capitalism, the majority would never be able to vote to violate the rights of the minority, no matter how large the majority or how small the minority. Individual rights would not be subject to a vote (4). .
Capitalism: Economics.
The essential nature of capitalism is social harmony through the pursuit of self-interest. Under capitalism, the individual's pursuit of his own economic self-interest simultaneously benefits the economic self-interests of all others. In allowing each individual to act unhampered by government regulations, capitalism causes wealth to be created in the most efficient manner possible which ultimately raises the standard of living, increases the economic opportunities, and makes available an ever growing supply of products for everyone. "The free-market operates in such a way so that as one man creates more wealth for himself, he simultaneously creates more wealth and opportunities for everyone else, which means that as the rich become richer, the poor become richer. It must be understood that capitalism serves the economic self-interests of all, including the non-capitalists" (Shadab 1). .
In the market economy, the buyers determine with every penny they spend the direction of the production processes and thereby the essential features of all business activities. "The consumers assign to everybody his position and function in the economic organism" (Mises 5). The owners of the material factors of production are virtually trustees of the consumers. If they fail in their attempts to serve the consumers in the best possible and cheapest way, they suffer losses If they do not change their way of doing business in time, they will lose their business (5).