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The American economy is often associated with free market capitalism. But the reality is that America has always had a mixed economy with a certain degree of capitalism and a certain degree of government involvement(socialism). With this being the case,exactly how free market do you consider the U.S to be? Are we miss representing the American economy by only associating it with free markets?
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The U.S. is clearly a mixed economy. The government controls or partially controls many goods or services, such as education, courts, roads, hospital care and postal delivery. It also provides subsidies to agricultural producers, oil companies, financial companies and utilities. Private individuals cannot legally provide or purchase certain types of goods, such as cocaine, haggis, raw milk, Cuban cigars and most types of flavored cigarettes. Other products face heavy taxation to discourage their use...
The American economy is often associated with free market capitalism. But the reality is that America has always had a mixed economy with a certain degree of capitalism and a certain degree of government involvement(socialism). With this being the case,exactly how free market do you consider the U.S to be? Are we miss representing the American economy by only associating it with free markets?
Well, that is dependent on what you mean by a free market. If you mean no governmetn involvement, that hasn't happened pretty much ever since the industrial revolution hit the US. Even today, there is a lot of government involvement in the economy. I wouldn't call it socialist though.
Socialist has a more specific definition; it's about... socializing things. It almost seems stupidly obvious to say it, but most just immediately call any form of government involvement in business to be a socialist. But this is not the case. A true socialist is concerned about the laborers, rather than profit margins. Since we're on the subject of defining things, let's be clear about what capitalism means as well. It does not mean a free market. It means that the means of production are privately owned. This does not mean the state has no part to play; it means the state does not have the final say.
Capitalism is profit driven. As it turns out, getting the state involved is actually pretty profitable in most cases. For example, most industries have lobbyists who pay politicians in exchange for a degree of support. You could also argue that these lobbyists only give money to those who already support them. It's corruption regardless. But it is profitable. These result in policies being made in their favor. This is how big industries get massive subsidies, yet somehow answer to themselves and no the public or the state. Yes, the state offers some regulations. Most of these are either actual socialist policy, or pseudo-socialist policy that was supported by the larger industries knowing that smaller competitors couldn't keep up with the regulatory standards, allowing for more growth on the ends of the larger corporations.
Some call this corporatism, as if it's different from capitalism. It's not. Corporatism is an inevitable result of capitalism. A good capitalist seeks to maximize profits. Having this level of power that corporations have is obscenely profitable.
To say the US is a free market is ridiculous. At one point, we were a great place to pursue entrepreneurial endeavors. We're still good for that, but let's face it, you can't compete with Walmarts prices. But we've never had this totally free market where everyone just does what they want and is respectful toward each other. It's simply never happened, and I'm sure the reason we say it did is to satisfy that need for freedom we have. But under the current system, we aren't free at all. Many don't hold my view, but I've never seen the logic of considering slavery under a capitalist and slavery under the state to be different in any meaningful way.
The American economy is often associated with free market capitalism. But the reality is that America has always had a mixed economy with a certain degree of capitalism and a certain degree of government involvement(socialism). With this being the case,exactly how free market do you consider the U.S to be? Are we miss representing the American economy by only associating it with free markets?
US is oligarchy, so the laws and the government favor the Oligarchy interests. Markets cannot be really free, it's a utopia, oligarchy AKA big money normally control markets as well as most other aspects of life so that they can retain and multiply their capitals.
The funny thing is that neither of you could tolerate life with failed banks.
Apparently neither of you are aware that a series of cascading bank failures worsened the Great Depression.
In my entire investment life, that is since the late '70's, I never held such a defensive investment posture than in 2006/7. Because I felt that an economic abyss might be potentially opening, and I had much to lose. It was no funny thing. I was fully behind the support and saving of the major financial institutions by the administration and the Fed. Though I would have liked to have seen some spankings...
US is oligarchy, so the laws and the government favor the Oligarchy interests. Markets cannot be really free, it's a utopia, oligarchy AKA big money normally control markets as well as most other aspects of life so that they can retain and multiply their capitals.
I agree, which is why I'm for a 100% free market, including the "services" government provides. Big money can't bribe those in power for unfair advantages if you eliminate that power completely.
You use their currency. You pay tribute to them (taxes). You must follow regulations. You must ask permission to compete.
You do this or face being caged/murdered.
Free market?
As John Bender says in The Breakfast Club: "Not even close, BUD!"
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