What happened to capitalism?
What happened to capitalism?
Up until recently, it was my impression that we lived in an open market capitalist economic structure. Which means that our economy or our market place was mostly based on the concepts of supply and demand. (Supply refers to how much of a resource or item was available. While demand refers how much desire the consumers had for a given resource or item. When mixed together, these items produced the price people were willing to pay.)
In our economic structure, only the strong companies survive and the weaker companies get folded or ate up. This is how it worked in the United States for as far back as the constitution. If I ran a small company and made bad business decisions or coulded compete, I would go out of business. There would be no government help or assistance. As a regular person, if I make bad decisions, I will go backrupt and have everything sold to pay off my debts. I am still responsible for what I owe.
So why is it that when a company, which usually reports in the billions of dollars in profits every year, has bad decisions and policies that they get bailed out. They did not have to assume responsibility for thier mistakes nor did they have to liquidate everything.
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The natural ebb and flow of business cycles was tweaked
Everything in life has a cycle. Business is no exception. Ebb and flow. Ebb and flow. The problem is, less money is made on a down cycle, which is the opposite of what greedy capitalists on Wall Street and Main Street want.
With the handing over of financial controls of our free market system to foreign private banking interests in 1913, the cycle began to be manipulated. I am one of those people who believe that the Great Depression was deliberate and avoidable and put in place to allow larger entities and corporations to snatch up smaller investors. FDR took us off the gold standard and confiscated the citizens' gold. Nixon took us off the silver standard, precipitating the OPEC oil crisis in 1973. When Bush took office, he ended the M3 money report, which told how many actual dollars were in circulation, which made it easy to determine the state of the economy.
If the government and private banking interests got completely out of the free market system, we should see a MASSIVE correction then a return to the natural business cycle. We are going to see a lot of pain while the same people who got us into this mess are digging deeper into OUR pockets to figure out a way to repair the damage while diffusing the blame from their own meddling.
No tweaking=healthy economy.
EDIT: I should add that I am not an economist, but I understand cycles and believe that unnatural tweaking of cycles does more harm than good.
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