FarfromNear
25th December 2003, 20:54
Read it. Please, don't reply to the post without reading it.
This next quote was taken from an article titled “Fascism and Socialism Explained” written by The Coastal Post - October, 1995
"Capitalism is good if government doesn't interfere or take sides. Such does not exist anywhere in the world today. Capitalism becomes something else that is very bad (and is not even capitalism anymore) when government interferes with competition and takes the side of various corporate elites."
I have to say that I agree with that quote.
It is important to first define and explain what Capitalism is.
- Capitalism.org defines Capitalism as being a social system based on individual rights. Capitalists advocate laissez faire.
- Yahoo references states that Capitalism is grounded in the concept of free enterprise, which argues that government intervention in the economy should be restricted and that a free market, based on supply and demand, will ultimately maximize consumer welfare.
- Capitalism.com explains Capitalism: "Man is an individual and reason is his means of knowledge. Individual rights recognize man's need to act individually on his knowledge. Private property, free markets, and rule of law institute and protect individual rights. Capitalism is the system of government which implements these principles. Nothing more, nothing less."
Capitalism basically advocates less Gov't intervention in the economy, in most major economies today, that intervention is seen. One can conclude that Capitalism is not implemented there. What I will admit is that the US, Australia, New Zealand, Taiwan, etc, are the closest thing to Capitalism. In Latin America we have never had Capitalism. In Latin America, as well as many other places in the world, we have had/have what is called Mercantilism.
-Yahoo defines mercantilism as being "a system of commercial controls in which industry and trade, especially foreign trade, were merely seen as means of strengthening the state. Navigation laws, trade monopolies, taxes, and paternalistic regulations of all kinds bore heavily upon the rising class of merchants (...)". Mercantilism is mainly characterized by the elite class, basically just a few number of people (10, 20, 30) being the ones protected by the Gov'tt. It is also characterized by the protection of the industry and closing of borders.
Now that we have more understanding of both systems, we can appropriately say that what we have in Latin America is mercantilism. Now there are countries that do have mostly Capitalism, like USA, Taiwan, New Zealand, Australia, Japan, etc. A lot of times, as seen in this board, people are quick to blame Capitalism for economic problems without understanding the real causes to those problems. It is those same things that Capitalism is against that have really been the cause to all those problems.
What are some of those "failures' of Capitalism as some of you like to call them? Well I will give you the main causes and I will explain their effects.
1. Protectionism of the Domestic Industry. Those can be seen as subsidies to the Steel and Agriculture industries.
- Higher taxes
- Higher prices. Consumers pay more for goods, whether they are imported or exported goods. Examples:
You can see it with the automotive industry. Most of us agree that German Cars and Japanese cars are the best. In order to protect the industry, the government has import tax on foreign cars. You could probably get them cheaper without the protectionism.
You can also see it with fruits. The Gov’t subsidizes the industry, by taxing, and taxes the imports. We still pay more for the goods. You can get a mango in Latin America for about 30 American cents, while you are paying like 2 dollars for them. You not only pay tax, but you pay more for goods. Consumers get screwed thanks to protectionism.
2. Labor Unions
- Unemployment. When a Firm is forced to pay a certain wage when it is not getting the revenue to cover the cost of labor, it is forced to diminish its input of labor. Therefore, people often get laid off.
3. Gov't Funded Social Programs such as welfare, public schools, health care, and other forms of social spending.
- Increased tax
- Not only economic, but also social implications like the reduce incentive to work.
4. Government Regulation of prices (Price Controls), and Regulations on industries.
- Social implication of reducing incentive to produce.
- Regulation of Industries, through taxation, creates higher prices, lower wages.
- Price controls can be seen in real estate in States like California
- Unemployment. This can be seen in Flint, Michigan with the closing of the General Motors factory that was located there. The factory gave jobs to the people of Flint. Due to Regulations and taxation, the companies moved out of Flint. The Unemployment rate there is high. The poverty rate there is below average. What all those regulations and taxes cause is that the company is driven away. You can see states like Texas and Georgia that are actually lowering regulations and tax to try to get Firms to move there. Companies boost the economy.
Related to all this Gov’t regulation was the Flu Vaccine problem seen during this year in the US. The real problem was that the Gov't wanted to provide that service so it regulated the price of flu vaccines. What happened was that the companies making those vaccines stopped making them because it was too expensive for them to do so. So in the end you only had 2 companies producing it, therefore there was a shortage. Those companies produced it because they had a contract with the Gov’t.
5. Minimum Wage
- Unemployment. No company has the same amount of revenue as another. To impose a minimum wage makes these firms have a certain cost of labor which a lot of times they can not afford, so they end up having to downsize.
All these things that I mentioned, and even more, are causes to all those economical problems that we see today. People are quick to blame capitalism but the real cause of that is the Gov't intervention in the economy. Capitalism is against much Gov’t intervention in the economy.
Why Capitalism is good?
- It promotes individual rights. It promotes ownership of private property, the most important being the mind and body.
- Freedom. Freedom of speech, freedom of association, freedom to do whatever you feel like doing. Freedom to make your own choices. Economic freedom.
- Capitalism encourages improvement. With Capitalism people are constantly trying to improve, being their work skills, education, production process, etc.
- Capitalism promotes creativity which results in technological advances. Technology is constantly improving because people have the incentive, provided by Capitalism, to create new things and improve their old ones. Technology is undeniably attributed to Capitalism.
- Capitalism looks to get people out of poverty.
- With Capitalistic competition Firms compete for the best employees so they raise wages and increase employee benefits. Firms also compete for the consumer by lowering prices and improving their products. Firms are constantly looking for more effective means of production therefore constantly improving the production process. Workers are always trying to improve by leaning more skills, getting more education, or working harder. With Capitalism everything is a chain of improvement.
- Flexibility. Capitalism allows adaptation to a changing environment.
We cannot see all the good in Capitalism when one of the Fundamental parts of Capitalism, minimum government interference, is not present. We truly can not say that Capitalism has failed when in fact, true Capitalism does not exist. You can see that the countries that are moving towards Capitalism have way better economies and standards of living. To see this one must compare various countries:
> Guatemala, small country in Central America, had a stronger economy that Taiwan in the 1960's. Both of those countries had an agriculture based economy. Guatemala, with a mercantilist economy, implemented many socialistic policies. Taiwan moved towards Capitalism. Taiwan today is one of the top 15 strongest economies in the world, while Guatemala has actually moved back. Living conditions in Taiwan are far better.
> USA, the closest thing to Capitalism, has the best economy in the World. It is also the richest economy in the world. The standards of living there are better than in other country. I mentioned Flint, Michigan having lost GM factory. In these last years, Michigan has actually adjusted its policies and investors are starting to go back there. The State is recovering.
> Compare North Korea, a socialist nation, with South Korea. South Korea is far more prosperous nation and standards of living are also better.
> Spain has finally started to move more towards Capitalism, now Spain is has one of the fastest growing economies in Europe. Latin America used to blame it's poverty on the Colonization by Spain, fact of the matter is, they can not blame Spain anymore because just in the last years Spain has changed it's way of thinking and it is starting to grow, while Latin American countries have worsened with their same old mentality.
> New Zealand is another nation for Capitalism. The Treasury of New Zealand provided a brief Summary of the Economy in New Zealand.
"In 1950s New Zealand had a successful agriculture economy. In the late 1960s, faced with growing balance of payments problems, successive Governments sought to maintain New Zealand's high standard of living with increased levels of overseas borrowing and increasingly protective economic policies."
"Problems mounted for the New Zealand economy in the 1970s. Access into key world markets for agricultural commodities became increasingly difficult. High levels of protection of domestic industry had greatly undermined competitiveness and the economy's ability to adapt to the changing world environment. After the next major shift in oil and commodity prices in 1979 and 1980, New Zealand's position deteriorated further."
"From around 1984 onwards, the direction of economic policy in New Zealand turned away from intervention toward the elimination of many forms of government assistance. On the macroeconomic level, policies have aimed at achieving low inflation and a sound fiscal position while microeconomic reforms have been intended to open the economy to competitive pressures and world prices. The reforms included the floating of the exchange rate; abolition of controls on capital movements; the ending of industry assistance; the removal of price controls; deregulation across a number of sectors of the economy; corporatization and privatization of state-owned assets; and labor market legislation aimed at facilitating more flexible patterns of wage bargaining."
"New Zealand's economic performance improved significantly over the 1990s. From mid-1991 the economy grew strongly, with particularly strong output growth over 1993 and 1994. Growth accelerated in 2002 and became increasingly broad-based, with Auckland - New Zealand's commercial center - also enjoying strong growth. A recent turnaround in migration flows has also helped to underpin domestic activity, particularly the housing market, and in annual average terms, economic growth was 3.9% in the year to September 2002."
The summary also reported that inflation has had a decreasing pattern. That means lower prices; therefore, your money buys more. The unemployment rate has also decreased. New Zealand has a strong economy due to its change from socialistic policies, to a Capitalistic state.
> Australia has a similar economic story as that of New Zealand.
> Ireland is also implementing more Capitalistic ideas, and Ireland’s economy is starting to grow. For a long time, Ireland had one of the words economies in Northern Europe. Ireland was unable to have jobs and prosperity for its small population. What Ireland exported the most were people. IN the 1950's Ireland closed its economy and tried to protect its industry. They started with public pedicure, high taxes, increased Gov’t intervention, increased debts and deficits, and more unions. Profits basically decreased to nothing, and they scared off investors. Unemployment was high. It was not till the 80's that the many unions finally started to accept wage moderation and the government cut expenditures and taxes. Profits rose and investors started to go there. Ireland's record of GDP growth is now the strongest in the developed world. Ireland had that unemployment problem, now they have shortage of Labor. The Irish people went from being one of the worst paid to one of the best paid people in the developed world. Revenues for the Gov’t are higher than they ever were with all those taxes.
> Netherlands was similar to Ireland. After World War II, the Dutch experiences economic growth due to wage moderation. In fact, with that wage moderation, workers were actually able to demand higher wages. Wage moderation fell through and wage costs increased heavily. In the 1960's the government's taxes and expenditures grew. They had huge deficits and experienced inflation. The Dutch experienced their worst peacetime economic period in Dutch history. In the 1980's the Dutch finally started to reduce Gov’t spending and taxes. They also set wage moderation. Since 1994 Netherlands has had strong economic growth. Wages have actually increased. Netherlands went from having one of the highest unemployment rates in Europe, to having one of the lowest in the entire world.
> I also have to compare some States in the US. If you look at Texas or Georgia. Those countries have many Corporations based in their cities, and the States have lowered taxes and regulations to give companies incentive to move there. Georgia use to be one of the worst economic regions in the US, if you look at it now, it is in fact on of the strongest. You should also look at Louisiana, it is a state with incredible amounts of resources and it has a high population. The State is also has one of the biggest transportation routes, the Mississippi river. If you look at Louisiana, its economy is behind other Southern States. The reason being is that Louisiana has a political economy. Louisiana’s economy has a lot of Gov’t intervention and it has been known for scaring off investors.
> It would also be important to take a look at Argentina's economy because it shows how the lack of Capitalism has really brought that country down. Between 1907 and 1910, Argentina was the 7th richest Nation in the World. It had the highest level rate of immigration, only second to the United States. Before Peron, Argentina was one of the richest countries in the world. Peron was the working the hero class of the working class. The major Leftist political grouping in Argentina today is named after him, the "Peronistas". Peron implemented many socialistic policies. Peron also spent a lot of the Nations wealth mainly on social programs. Taking a look at Argentina now, it is in terrible shape. The economy is terrible. They inflation rates and unemployment rates have increased significantly in the last 10 years. Since Peron the country has never been able to recover. The country is not moving forward, it is in fact, moving backwards.
One can truly see how those countries who adapted more Capitalism have improved, while countries like those in Latin America have actually moved backward.
All I gave you were real historical facts, and statistics. These are all real examples. All this shows how the countries that deregulated their economy and moved towards Capitalism have actually experienced economic growth. You can see how those countries reduced Gov’t intervention in their economies. You can see that those countries that moved towards Capitalism are not only richer, but they have higher wage rates, lower rates of unemployment, lower inflation rates, and have better living conditions that many other countries. If you look at Latin America, it is quite the opposite. I also remind you that it is simply false to say that Capitalism has existed in Latin America. Anyways, one can clearly see how it is that all that Gov’t intervention really ruins Capitalism. Now just imagine how things would be if we had Capitalism with minimum Gov’t intervention. Things would be way better. There would be less poverty. Like all those countries, we would experience economic growth. People would get paid better and would buy things for cheaper. People would have better living conditions. That would be great.
References
- http://education.yahoo.com/reference/encyc...a/entry?id=8413 (http://education.yahoo.com/reference/encyclopedia/entry?id=8413)
- www.capitalism.org
- www.capitalism.com
- http://www.treasury.govt.nz/nzefo/2003/economy.asp
- http://www.marxists.org/glossary/
- http://jonjayray.tripod.com/musso.html
- http://www.idaireland.com/industry/treasury.asp
- http://www.cbs.nl/
This next quote was taken from an article titled “Fascism and Socialism Explained” written by The Coastal Post - October, 1995
"Capitalism is good if government doesn't interfere or take sides. Such does not exist anywhere in the world today. Capitalism becomes something else that is very bad (and is not even capitalism anymore) when government interferes with competition and takes the side of various corporate elites."
I have to say that I agree with that quote.
It is important to first define and explain what Capitalism is.
- Capitalism.org defines Capitalism as being a social system based on individual rights. Capitalists advocate laissez faire.
- Yahoo references states that Capitalism is grounded in the concept of free enterprise, which argues that government intervention in the economy should be restricted and that a free market, based on supply and demand, will ultimately maximize consumer welfare.
- Capitalism.com explains Capitalism: "Man is an individual and reason is his means of knowledge. Individual rights recognize man's need to act individually on his knowledge. Private property, free markets, and rule of law institute and protect individual rights. Capitalism is the system of government which implements these principles. Nothing more, nothing less."
Capitalism basically advocates less Gov't intervention in the economy, in most major economies today, that intervention is seen. One can conclude that Capitalism is not implemented there. What I will admit is that the US, Australia, New Zealand, Taiwan, etc, are the closest thing to Capitalism. In Latin America we have never had Capitalism. In Latin America, as well as many other places in the world, we have had/have what is called Mercantilism.
-Yahoo defines mercantilism as being "a system of commercial controls in which industry and trade, especially foreign trade, were merely seen as means of strengthening the state. Navigation laws, trade monopolies, taxes, and paternalistic regulations of all kinds bore heavily upon the rising class of merchants (...)". Mercantilism is mainly characterized by the elite class, basically just a few number of people (10, 20, 30) being the ones protected by the Gov'tt. It is also characterized by the protection of the industry and closing of borders.
Now that we have more understanding of both systems, we can appropriately say that what we have in Latin America is mercantilism. Now there are countries that do have mostly Capitalism, like USA, Taiwan, New Zealand, Australia, Japan, etc. A lot of times, as seen in this board, people are quick to blame Capitalism for economic problems without understanding the real causes to those problems. It is those same things that Capitalism is against that have really been the cause to all those problems.
What are some of those "failures' of Capitalism as some of you like to call them? Well I will give you the main causes and I will explain their effects.
1. Protectionism of the Domestic Industry. Those can be seen as subsidies to the Steel and Agriculture industries.
- Higher taxes
- Higher prices. Consumers pay more for goods, whether they are imported or exported goods. Examples:
You can see it with the automotive industry. Most of us agree that German Cars and Japanese cars are the best. In order to protect the industry, the government has import tax on foreign cars. You could probably get them cheaper without the protectionism.
You can also see it with fruits. The Gov’t subsidizes the industry, by taxing, and taxes the imports. We still pay more for the goods. You can get a mango in Latin America for about 30 American cents, while you are paying like 2 dollars for them. You not only pay tax, but you pay more for goods. Consumers get screwed thanks to protectionism.
2. Labor Unions
- Unemployment. When a Firm is forced to pay a certain wage when it is not getting the revenue to cover the cost of labor, it is forced to diminish its input of labor. Therefore, people often get laid off.
3. Gov't Funded Social Programs such as welfare, public schools, health care, and other forms of social spending.
- Increased tax
- Not only economic, but also social implications like the reduce incentive to work.
4. Government Regulation of prices (Price Controls), and Regulations on industries.
- Social implication of reducing incentive to produce.
- Regulation of Industries, through taxation, creates higher prices, lower wages.
- Price controls can be seen in real estate in States like California
- Unemployment. This can be seen in Flint, Michigan with the closing of the General Motors factory that was located there. The factory gave jobs to the people of Flint. Due to Regulations and taxation, the companies moved out of Flint. The Unemployment rate there is high. The poverty rate there is below average. What all those regulations and taxes cause is that the company is driven away. You can see states like Texas and Georgia that are actually lowering regulations and tax to try to get Firms to move there. Companies boost the economy.
Related to all this Gov’t regulation was the Flu Vaccine problem seen during this year in the US. The real problem was that the Gov't wanted to provide that service so it regulated the price of flu vaccines. What happened was that the companies making those vaccines stopped making them because it was too expensive for them to do so. So in the end you only had 2 companies producing it, therefore there was a shortage. Those companies produced it because they had a contract with the Gov’t.
5. Minimum Wage
- Unemployment. No company has the same amount of revenue as another. To impose a minimum wage makes these firms have a certain cost of labor which a lot of times they can not afford, so they end up having to downsize.
All these things that I mentioned, and even more, are causes to all those economical problems that we see today. People are quick to blame capitalism but the real cause of that is the Gov't intervention in the economy. Capitalism is against much Gov’t intervention in the economy.
Why Capitalism is good?
- It promotes individual rights. It promotes ownership of private property, the most important being the mind and body.
- Freedom. Freedom of speech, freedom of association, freedom to do whatever you feel like doing. Freedom to make your own choices. Economic freedom.
- Capitalism encourages improvement. With Capitalism people are constantly trying to improve, being their work skills, education, production process, etc.
- Capitalism promotes creativity which results in technological advances. Technology is constantly improving because people have the incentive, provided by Capitalism, to create new things and improve their old ones. Technology is undeniably attributed to Capitalism.
- Capitalism looks to get people out of poverty.
- With Capitalistic competition Firms compete for the best employees so they raise wages and increase employee benefits. Firms also compete for the consumer by lowering prices and improving their products. Firms are constantly looking for more effective means of production therefore constantly improving the production process. Workers are always trying to improve by leaning more skills, getting more education, or working harder. With Capitalism everything is a chain of improvement.
- Flexibility. Capitalism allows adaptation to a changing environment.
We cannot see all the good in Capitalism when one of the Fundamental parts of Capitalism, minimum government interference, is not present. We truly can not say that Capitalism has failed when in fact, true Capitalism does not exist. You can see that the countries that are moving towards Capitalism have way better economies and standards of living. To see this one must compare various countries:
> Guatemala, small country in Central America, had a stronger economy that Taiwan in the 1960's. Both of those countries had an agriculture based economy. Guatemala, with a mercantilist economy, implemented many socialistic policies. Taiwan moved towards Capitalism. Taiwan today is one of the top 15 strongest economies in the world, while Guatemala has actually moved back. Living conditions in Taiwan are far better.
> USA, the closest thing to Capitalism, has the best economy in the World. It is also the richest economy in the world. The standards of living there are better than in other country. I mentioned Flint, Michigan having lost GM factory. In these last years, Michigan has actually adjusted its policies and investors are starting to go back there. The State is recovering.
> Compare North Korea, a socialist nation, with South Korea. South Korea is far more prosperous nation and standards of living are also better.
> Spain has finally started to move more towards Capitalism, now Spain is has one of the fastest growing economies in Europe. Latin America used to blame it's poverty on the Colonization by Spain, fact of the matter is, they can not blame Spain anymore because just in the last years Spain has changed it's way of thinking and it is starting to grow, while Latin American countries have worsened with their same old mentality.
> New Zealand is another nation for Capitalism. The Treasury of New Zealand provided a brief Summary of the Economy in New Zealand.
"In 1950s New Zealand had a successful agriculture economy. In the late 1960s, faced with growing balance of payments problems, successive Governments sought to maintain New Zealand's high standard of living with increased levels of overseas borrowing and increasingly protective economic policies."
"Problems mounted for the New Zealand economy in the 1970s. Access into key world markets for agricultural commodities became increasingly difficult. High levels of protection of domestic industry had greatly undermined competitiveness and the economy's ability to adapt to the changing world environment. After the next major shift in oil and commodity prices in 1979 and 1980, New Zealand's position deteriorated further."
"From around 1984 onwards, the direction of economic policy in New Zealand turned away from intervention toward the elimination of many forms of government assistance. On the macroeconomic level, policies have aimed at achieving low inflation and a sound fiscal position while microeconomic reforms have been intended to open the economy to competitive pressures and world prices. The reforms included the floating of the exchange rate; abolition of controls on capital movements; the ending of industry assistance; the removal of price controls; deregulation across a number of sectors of the economy; corporatization and privatization of state-owned assets; and labor market legislation aimed at facilitating more flexible patterns of wage bargaining."
"New Zealand's economic performance improved significantly over the 1990s. From mid-1991 the economy grew strongly, with particularly strong output growth over 1993 and 1994. Growth accelerated in 2002 and became increasingly broad-based, with Auckland - New Zealand's commercial center - also enjoying strong growth. A recent turnaround in migration flows has also helped to underpin domestic activity, particularly the housing market, and in annual average terms, economic growth was 3.9% in the year to September 2002."
The summary also reported that inflation has had a decreasing pattern. That means lower prices; therefore, your money buys more. The unemployment rate has also decreased. New Zealand has a strong economy due to its change from socialistic policies, to a Capitalistic state.
> Australia has a similar economic story as that of New Zealand.
> Ireland is also implementing more Capitalistic ideas, and Ireland’s economy is starting to grow. For a long time, Ireland had one of the words economies in Northern Europe. Ireland was unable to have jobs and prosperity for its small population. What Ireland exported the most were people. IN the 1950's Ireland closed its economy and tried to protect its industry. They started with public pedicure, high taxes, increased Gov’t intervention, increased debts and deficits, and more unions. Profits basically decreased to nothing, and they scared off investors. Unemployment was high. It was not till the 80's that the many unions finally started to accept wage moderation and the government cut expenditures and taxes. Profits rose and investors started to go there. Ireland's record of GDP growth is now the strongest in the developed world. Ireland had that unemployment problem, now they have shortage of Labor. The Irish people went from being one of the worst paid to one of the best paid people in the developed world. Revenues for the Gov’t are higher than they ever were with all those taxes.
> Netherlands was similar to Ireland. After World War II, the Dutch experiences economic growth due to wage moderation. In fact, with that wage moderation, workers were actually able to demand higher wages. Wage moderation fell through and wage costs increased heavily. In the 1960's the government's taxes and expenditures grew. They had huge deficits and experienced inflation. The Dutch experienced their worst peacetime economic period in Dutch history. In the 1980's the Dutch finally started to reduce Gov’t spending and taxes. They also set wage moderation. Since 1994 Netherlands has had strong economic growth. Wages have actually increased. Netherlands went from having one of the highest unemployment rates in Europe, to having one of the lowest in the entire world.
> I also have to compare some States in the US. If you look at Texas or Georgia. Those countries have many Corporations based in their cities, and the States have lowered taxes and regulations to give companies incentive to move there. Georgia use to be one of the worst economic regions in the US, if you look at it now, it is in fact on of the strongest. You should also look at Louisiana, it is a state with incredible amounts of resources and it has a high population. The State is also has one of the biggest transportation routes, the Mississippi river. If you look at Louisiana, its economy is behind other Southern States. The reason being is that Louisiana has a political economy. Louisiana’s economy has a lot of Gov’t intervention and it has been known for scaring off investors.
> It would also be important to take a look at Argentina's economy because it shows how the lack of Capitalism has really brought that country down. Between 1907 and 1910, Argentina was the 7th richest Nation in the World. It had the highest level rate of immigration, only second to the United States. Before Peron, Argentina was one of the richest countries in the world. Peron was the working the hero class of the working class. The major Leftist political grouping in Argentina today is named after him, the "Peronistas". Peron implemented many socialistic policies. Peron also spent a lot of the Nations wealth mainly on social programs. Taking a look at Argentina now, it is in terrible shape. The economy is terrible. They inflation rates and unemployment rates have increased significantly in the last 10 years. Since Peron the country has never been able to recover. The country is not moving forward, it is in fact, moving backwards.
One can truly see how those countries who adapted more Capitalism have improved, while countries like those in Latin America have actually moved backward.
All I gave you were real historical facts, and statistics. These are all real examples. All this shows how the countries that deregulated their economy and moved towards Capitalism have actually experienced economic growth. You can see how those countries reduced Gov’t intervention in their economies. You can see that those countries that moved towards Capitalism are not only richer, but they have higher wage rates, lower rates of unemployment, lower inflation rates, and have better living conditions that many other countries. If you look at Latin America, it is quite the opposite. I also remind you that it is simply false to say that Capitalism has existed in Latin America. Anyways, one can clearly see how it is that all that Gov’t intervention really ruins Capitalism. Now just imagine how things would be if we had Capitalism with minimum Gov’t intervention. Things would be way better. There would be less poverty. Like all those countries, we would experience economic growth. People would get paid better and would buy things for cheaper. People would have better living conditions. That would be great.
References
- http://education.yahoo.com/reference/encyc...a/entry?id=8413 (http://education.yahoo.com/reference/encyclopedia/entry?id=8413)
- www.capitalism.org
- www.capitalism.com
- http://www.treasury.govt.nz/nzefo/2003/economy.asp
- http://www.marxists.org/glossary/
- http://jonjayray.tripod.com/musso.html
- http://www.idaireland.com/industry/treasury.asp
- http://www.cbs.nl/