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Capitalism cannot exist without property rights. Eminent domain is the enemy of capitalism.
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I don't disagree with that one bit. I do, however, disagree with the premise that eminent domain is a necessary component of capitalism. Quite the contrary - it smacks of authoritarianism, where property rights and individual freedoms are subverted to the authority or the will of the state.
The pure capitalistic response to your transportation example would be that free market forces would satisfy the nation's demand for transportation infrastructure. Land would be purchased and sold in a competitive market where its value would be determined in part by its ability to generate profits for its owner. Roads would be privately owned, and the right to their use would be purchased (via tolls).
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I didn't say I was an advocate of capitalism, nor of eminent-domain. It just clearly has been a great tool for capitalists. Authoritarians can be capitalists, in fact, wasn't it Mousselini that said Fascism is the combination of government and business. Property rights are the enemy of true capitalism, rights prevent those with capital from taking capital from others. Isn't that the goal of deregulation? - improved profit-making... Property rights regulate capitalism, and eminent-domain is the exception created to improve capitalism (generally, it can be done for other reasons as well, such as safety and environmental concerns).