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Gavin Farrell's avatar

I would say Capitalism is more than just investing in a company. Ownership is implied in Capitalism. To be a real capitalist, you have to own something (land, a business that produces something). Profits that you extract via rent or sale of the commodity you produce are then used to accumulate more profit-creating property (expand the business, buy more rent-taking land). That is capitalism - accumulation of more power to get control of more income producing stuff via re-investing profits you have extracted from unequal exchanges.

Just investing in stocks and getting dividends isn't capitalism. That is potentially letting somebody else use your excess money to let THEM expand in a Capitalist way. That you may be getting a small cut of their expansion doesn't make you a capitalist (unless you are a BIG investor who actually has enough shares to have an ownership stake and control of a company's decision making and ability to loot the company's profits). Stock investing may in some cases be you just getting fleeced by participating in a ponzi scheme. Unless you are using the profits you have extracted from the stock market to accumulate more income producing property (rather than just using it to live as retirement money), you aren't really a capitalist by just having a 401k (in my opinion).

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