Hm, I find a lot of this at least debatable, some questionable - for example the straight-out characterization of late Prussia/the German Empire as non-capitalistic. I'd also be surprised if the rejection of the term "capitalism" for today's economies is as universal among economists as you say, and not just the standpoint of some specific schools - but I acknowledge that you'd know more about that than me.
Are you saying you believe the Bismarkian welfare state grew out of capitalism? That Bismark's welfare state itself was capitalist in origin and design? If so that would be the first I've ever heard anyone make that
Bismark's model was about adopting specific policies to prevent people advancing even further radical changes to policies. His change of model did not derive from capitalism and in fact went against the free market fundamentalists of the time period.
In general, I'd say capitalism is always a mix of various elements - a "pure" economic form is an impossibility -, but under the primary mode of wealth generation through capital accumulation processes. I see this variability and flexibility as one of capitalism's main strengths and survival traits - the fact that capital accumulation can function under very different regulatory regimes, who can adjust to changing circumstances.
If you are saying that capitalism itself cannot exist without a state that provides 1) the legal system to enforce contracts and 2) some form of state enforcement of law then yes I agree but your broadening the definition to go beyond any concrete demarcation really makes capitalism a mostly meaningless term that feeds right into the right wing propaganda machine.
Of course your 'pure' version of capitalism is an impossibility but so is your definition of pure socialism (public ownership of the means of production). First there is no way to achieve public ownership of the means of production without using the state's top down power unless you move towards
Kevin Kelly style digital socialism and even then we've already seen both private and state actors corrupt some of the benefits. This is one aspect where I simply think Marx runs out of steam and again, we have to move beyond the predictions of a mid 1800s ragamuffin because the world has evolved beyond Adam Smith and Karl Marx (and Hayek and Fourier and Friedman and Owen as well).
We approach the third decade of the 21st century and its time to start building new models based on what we know from behavioral economics, cognitive psychology, neuroscience, the results of coercive marketing, planned obsolescence, the tragedy of the commons and the fact that public ownership of the means of production is also impossible.
Better terms in general because they are more concrete would be
profit-seeking vs.
self-sustainable. There are simply certain industries in society that should NEVER be profit-seeking because they simply create massively misaligned incentives - prisons, health care, education, utilities. A society that allows some profit seeking areas and doesn't allow others is IMO neither traditional "capitalism" or "socialism" and labeling it as one or both obfuscates the real important aspects that need to be highlighted and analyzed: profit seeking motives and how they skew incentives. That's the debate that needs to be had and cloaking it in 19th century loaded terms that people have drastically different definitions of isn't helping, its hurting.
Also, this is relevant to the thread US Politics because what we actually debating are the underlying principles US political economy should be angled around. I believe strongly that if the next 20 years are about a ridiculous capitalism vs socialism then the US is well and truly fecked. For me its simple, no need to use charged words from the 1900s to debate the empirical effects of profit-seeking motives in different industries.
You can call capitalism the
thesis or the
antithesis and socialism the other but as long as people are stuck debating thesis vs. antithesis society will never move on to create a
synthesis and enter the next phase of social evolution.