First, lets cover some definitions especially since many people confuse the free market with capitalism. Taken from http://www.blackcrayon.com

FREE MARKET
That condition of society in which all economic transactions result from voluntary choice without coercion.

THE STATE
That institution which interferes with the Free Market through the direct exercise of coercion or the granting of privileges (backed by coercion).

TAX
That form of coercion or interference with the Free Market in which the State collects tribute (the tax), allowing it to hire armed forces to practice coercion in defense of privilege, and also to engage in such wars, adventures, experiments, "reforms," etc., as it pleases not at its own cost, but at the cost of "its" subjects.

PRIVILEGE
From the Latin privi, private, and lege, law. An advantage granted by the State and protected by its powers of coercion. A law for private benefit.

USURY
That form of privilege or interference with the Free Market in which one State-supported group monopolizes the coinage and thereby takes tribute (interest), direct or indirect, on all or most economic transactions.

LANDLORDISM
That form of privilege or interference with the Free Market in which one State-supported group "owns" the land and thereby takes tribute (rent) from those who live, work, or produce on the land.

POLITICAL CAPITALISM
That organization of society, incorporating elements of tax, usury, landlordism, and tariff, which thus denies the Free Market while pretending to exemplify it.

CONSERVATISM
That school of capitalist philosophy which claims allegiance to the Free Market while actually supporting usury, landlordism, tariff, and sometimes taxation.

SOCIALISM
The attempted abolition of all privilege by restoring power entirely to the coercive agent behind privilege, the State, thereby converting capitalist oligarchy into Statist monopoly. Whitewashing a wall by painting it black.

ANARCHISM
That organization of society in which the Free Market operates freely, without taxes, usury, landlordism, tariffs, or other forms of coercion or privilege.

For this intellectual shell game, the cartelists needed the support of the nation’s intellectuals, the class of professional opinion-molders in society. The Morgans needed a smokescreen of ideology, setting forth the rationale and the apologetics for the New Order. Again, fortunately for them, the intellectuals were ready and eager for the new alliance. The enormous growth of intellectuals, academics, social scientists, technocrats, engineers, social workers, physicians, and occupational “guilds” of all types in the late nineteenth century led most of these groups to organize for a far greater share of the pie than they could possibly achieve on the free market. These intellectuals needed the State to license, restrict, and cartelize their occupations, so as to raise the incomes for the fortunate people already in these fields. In return for their serving as apologists for the new statism, the State was prepared to offer not only cartelized occupations, but also ever-increasing and cushier jobs in the bureaucracy to plan and propagandize for the newly statized society. And the intellectuals were ready for it, having learned in graduate schools in Germany the glories of statism and organicist socialism, of a harmonious “middle way” between dog-eat-dog laissez-faire on the one hand and proletarian Marxism on the other. Instead, big government, staffed by intellectuals and technocrats, steered by big business and aided by unions organizing a subservient labor force, would impose a cooperative commonwealth for the alleged benefit of all."