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Yes, I think that's a good start and we'd need to delve into what property means as well. — Benkei
I'm going to have a go at answering "What is property?"
When I own something -- be it a parcel of land, a book of family photographs, a company, an insurance policy, a ticket for transit, a certification -- I have a claim of some sorts as to how that owned something is to be used. I may do with it as I please, and can even allow others to do with it as I please. So if I own a sizeable portion of land that is fertile and could produce good crops I may use a portion of that land to feed my needs, and allow the rest of it to lay fallow -- say I enjoy walking through the countryside. Now supposing I have a neighbor who also has fertile land, but not quite as much, because they do not own my land they could not plant in it.
Now suppose one season my neighbor decides that this isn't exactly a fair arrangement, since I'm not doing anything with good land anyway, and they could use said land to benefit themselves and even others (by producing good crops, rather than just let the land go to waste). So they decide to plow my land and plant the crops there, come what may.
What am I to do?
I think that in a positive sense we may direct what we own. But the character of property really comes out when our claims to it are violated by others. Supposing there were no state then I would have to find some means of recourse by negotiating with my neighbor. At the end of the day we may not ever see eye-to-eye, but I'll then have some kind of feeling that I have a claim to that land anyways, and will do what I need to do to enforce said claim -- bandy together with fellow neighbors to apply social pressure, burn the crops of my neighbor when they grow, salt the fields, or by the use of militant force.
In some ways property, of this sort, is before the state. But this kind of property preceded capitalism. Feudalism, for instance -- while it did not always rely upon war to solve issues -- certainly did resolve disputes over property by means of war.
What is especially significant about capitalism is that there is a state to back up said claims. There is a law in place and a process backed up by the eventual use of force to enforce claims. Property, state, and the law are all bound together in a capitalist economy.
In some way, then, property actually becomes a limited dictatorship over whatever set of things owned, but delimited by the power of the state (since the state is what enforces said claims in the first place). How said laws and states are arranged -- and even economies, as even this form of property is not what makes capitalism, but is the kind of property which capitalism relies upon -- can differ dramatically, and need not reflect our current societies.
But the point I want to drive home most is that in order for the kind of property which capital requires to exist there must also exist a state which enforces the claims which make property. Mostly because I think it's naive to look at capitalism, corporation, private ownership, and the whole lot of industry under capitalism as somehow opposed to the state (as is often conceived in popular imagination, but I don't think that capitalists are unaware of this -- just something worth noting because of said popular imagination, and also because 'property' often goes undefined and presumed as well understood)