With your example of B taking the product of A's labor there are only two cases.
1) A agrees to the trade with B
2) A does not agree and is coerced by B
1) is capitalism.
2) is theft.
Thoughts?
There are three cases:
1) A agrees freely to trade with B.
2) A agrees but not freely to trade with B.
3) A does not agree and B takes A's product anyway.
The first case is a cooperative exchange. If A has some weakness that might compel him to accept an unfair deal (lack of access to a market, an addiction, hunger, sickness, a lack of access to the means of production, blackmail etc.) and B takes advantage of that weakness, we have capitalism, and subtle theft, in the second case. The third case represents straight-up theft, but it is also capitalism because B took advantage of A's weakness in his inability to prevent the theft.
Are they of equal value, the exchange had a built in profit. "The Margin". What does the Wheel Maker do with 10 Spears? He is only one guy.
He doesn't need 10, he is saving his profit for later. (His profit margin).
Under your argument he would only exchange what he needs.
If the ten spears covers the cost of building a wheel and its bill of materials, neither caveman takes a profit. If the wheel was actually worth five spears, the wheel maker would have taken a five spear profit from the buyer.
You really need to stop and think about what you mean to say, before you type.
Okay, Mom.
Capitalism is simply a concept that pulls together several economic laws under one word. Laws in the "natural" and "God created them" kind.
As I've stated before, I get suspicious when people try to justify something with natural law or God. Lost Cause apologists do the same thing.
The first being, the individual has a right to the fruits of his labor. (i.e. the capital) and he also has a right to trade it freely without coercion. The value of the two items being traded don't have a set value, the value of each thing is subjective to the perspectives of he who trades. The law of supply and demand also comes into play; as these two could be trading things on the (original) Silk Road, one trading silk from China and the other trading whatever it is that Europe made that Chinese people wanted. Each item is moving from a region that has more of it, and therefore it's market value is lower, to a region where there is less of it, and therefore it's market value is higher. That's called 'arbitridge'. Another law that you don't know is comparative advantage. Go google "the island trading game".
I agree that individuals have the right to the products of their labor and that they have the right to trade without coercion. However, an exchange between an employer and his employee is inherently coercive because the employer is in charge of his employee. I agree, for the most part anyway, that we can only subjectively value the products of our labor. I happen to agree that markets are useful for determining value, but acknowledge that there are other useful ways, but the producer of a given product deserves the entirety of that value. For doing no work, a middleman deserves nothing. Now, when a merchant transports products to foreign markets by his own labor, he deserves compensation for that expense. But he has no right to take advantage of the products' builders for their lack of access to foreign markets.
What you think is capitalism, is corporatism, and a far cry from capitalism.
No, I'm not. Capitalism consists of authoritarian relationships. Whether these relationships involve two people or a multitude, it's capitalism.
A free market, by definition, is capitalist in nature; but that does not mean that capitalism only exists in a free market. As has been noted by another, capitalism exists always and everywhere, it's just illegal under certain political conditions.
Capitalism is a choice (although some might find themselves coerced into behaving capitalistically). You have to choose to take advantage of others.
Capitalists depend on domination to profit. As such, states will exist in any capitalist society.