Posted on 12/31/2010 6:16:53 AM PST by verdugo
....By purely capitalist standards, capitalism does not work and never has.
What, precisely, does a capitalist mean when he says that capitalism works? Simply this: that the capitalist system can provide a relatively stable and prosperous economic order without a lot of government interference in the market. That is to say, capitalism is basically “self-regulating,” and needs no outside force, such as government, to balance supply and demand and ensure prosperity. ... But he cannot fail to notice, if he is intellectually honest, that capitalism has never been a stable economic order without the heavy involvement of the government. And if this system that we pronounce “working” is really one that requires the heavy hand of government for its stability, can we really call it “capitalist” without at least adding some modifier.....The people who argue that “capitalism works” are the same people who argue that we should have less government interference in the market. Now, I am all for less government; however, the plain fact of the matter is that capitalism cannot function without this interference; capitalism relies on an expanded state to balance aggregate supply and demand. Consider this fact: in the period from 1853 to 1953, the economy was in recession or depression fully 40% of the time. Since 1953 the economy has been in recession only 15% of the time.. Consider the following chart, which depicts the American economy in the period from 1900-2006 (click on the CHART to see a better version)
By the author’s “logic” investing does not work well enough because the returns are too uneven. Only a Madoff-style Ponzi scheme gives satisfactory results.
“Government is not a solution to our problem, government is the problem.”
Ronald Reagan
I posted the article because it shows that capitalism without big government interference, has not existed since like 1920’s. I've always advocated less government, yet, as this chart shows, capitalism needs big government, or so it seems. Maybe bankers need big government.
ANYHOW, no one is proposing socialism, I lost my country to the communists, I know socialism/communism when I see it, from HAVING LOST EVERYTHING TO COMMUNISTS, BUT THE SHIRT ON MY BACK!
Yep, it is not “Liberation Theology”, but almost at weird.
Why would anyone post a thread with a yet unfinished book on such an off the wall subject here on Free Republic?
If you search the web for “distributionism” it will not take long to discover the source. G. K. Chesterton blames the “Enlightenment” for all the failures in the world, guess he thinks the “old order” (feudalism) was better.
What a load of crap.
I lost my country to the communists, I think I know socialism/communism better than anyone else, when I see it, from HAVING LOST EVERYTHING TO COMMUNISTS, BUT THE SHIRT ON MY BACK!
True. Very good!
The problem with the 1853 to 1953 time frame is this the time frame was clearly cherry picked to find the worst 100. This is dishonest. Next, from about 1916, our economy has been centrally planned and always directed towards socialism. Why doesn’t this dishonest writer show us the economy from the beginning of the nation to say,,,, 1900? The world was amazed by us then. We had about 4 times the living standard of Europe. All based on the simple idea that people kept what they earned,,, and that government was only meant to protect from force or fraud.
But Reagan expanded government BIG TIME!
Capiltalism needs a strong and unflinching regard for fiduciary duty, honest books, understanding and respect for the rules of agency, trusts and bailments, courts willing to enforce all that, as well as a gold or silver based currency. That’s about it.
But all of the above is ABSENT in modern capitalism.
Banksters outright own powerful governments and use those governments as a tool.
re: Why would anyone post a thread with a yet unfinished book on such an off the wall subject here on Free Republic?
You should read before you write. The book is published, and as I said, I only use the link, for the chart, it does not scan well from the book.
Sounds to me like the author is proposing Obama’s brand of “State Capitalism” which is socialism with a happy face.
Sure,,, nobody is proposing socialism. Just a heavy handed government that centrally plans things to ensure that capitalism works? If you escaped a place like that, don’t bring it with you. Bring your cuisine, literature, music etc. Leave all funny ideas about government there. Ditto if your religion has ideas of theocracy.
How on earth can it sound to you that the author is proposing Obama’s brand of “State Capitalism”?
The author is writing AGAINST government involvement in the capitalism!!!!!
Socialism always fails, always. Capitalism isn’t perfect but it the best. The author is a moron.
Obviously, you have not read anything of the article (to say the least). The author is criticizing big governments involvement in the free marketplace. He is against big government!!!!!
Ahhhhhhh,, now I understand you. Yes, banks are ugly, despotic, and out of control. and indeed they are. I think your motives are sincere. But think of 1 thing, the banks now live by government and do not answer to pure market forces. This is called crony capitalism. The true capitalism we once had is a different animal.
re: The author is a moron
and who are you to say, what are your credentials? Obviously you have not read one word of what the author wrote. He is totally against big government. He is actually telling you that the USA TODAY is no longer capitalist in the true sense of the term(an economic order that is self-regulating, and needs no outside force, such as government, to balance supply and demand and ensure prosperity.)He is criticizing big government involvement in the market place. How on earth do you get that he’s a socialist from that?
He said capitalism is not stable without HEAVY government involvement. Thats socialism 101.
“But Reagan expanded government BIG TIME!”
Yes, he expanded our military and won the cold war without firing a shot.
Fractional reserve banking is a morally doubtful activity that does seem to require government to bail out its problems. In a perfect world a reform of the monetary system might alleviate some of these problems.
The one thing capitalism really absolutely needs from government is the uncorrupted rule of law. And that seems to be what we are slowly losing.
You are correct. Capitolism is not a system...it is the lack of one, otherwise referred to as freedom.
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