There is no natural rate of unemployment under capitalism.
"Capitalism" vs a free market, free enterprise system
When you use the word "capitalism", do you have a distinction in mind between "capitalism" and a free market, free enterprise system, which is what our founders intended to protect and advocated for.
I would like to point out the word “capitalism” was unknown to our founders. In fact it was used and popularized by Karl Marx to describe a free market system in an evil light. By contrast, our founder’s often describe our system in a manner promoting a free market, free trade, or free enterprise ___ “free” being the operative word. For example see
Thomas Jefferson : First Annual Message to Congress
”Agriculture, manufactures, commerce, and navigation, the four pillars of our prosperity, are the most thriving when left most free to individual enterprise.”
I have never found our founders using the word “capitalism” in our founding documents to describe our system. In fact, the very reason for granting power to Congress to “regulate commerce” among the States was to protect and advance free trade among the States by forbidding one state taxing another state’s exports which passed through its borders. This is further illustrated in Article 1, Section 9 which declares: No Preference shall be given by any Regulation of Commerce or Revenue to the Ports of one States over those of another; nor shall Vessels bound to, or from, one States, be obliged to enter, clear, or pay Duties in another.
But our progressive/socialist domestic enemies do not like the word “free” being used to describe our economic system because it is hard to attack the word “free” which clearly implies the people are to be “free” to engage in commerce and freely trade with their mutual consent ___ an original inalienable right of mankind. “Capitalism” on the other hand gives great latitude to cast America’s system in an evil light, particularly as a system manipulated by evil “Crony Capitalists”.
For more on the distinction between our system, as intended by our Founders, and “Capitalism”, see:
PART TWO: Free Enterprise is Better than Capitalism
JWK