Sunday, August 7, 2011
"Capitalism doesn't work in the US?": What type of Economy works in America
The type of Economic System that doesn't work at least in America and other countries can speak for themselves. is what we've been doing the last ten years, which is called "Cowboy Economics". Which is a system where you don't regulate the economy well if at all and then when "Too Big to Fail" company's fail and go down. The Federal Government steps in and only then to bail these company's out IE TARP of 2008. You essentially let people behave badly and then bail them out with people who've played by the rules. But you don't even pay for your Bail Outs, you rob people of the future by borrowing the money to pay for the bailouts. And then you also cut taxes so far as well as Tax Loopholes, where the wealthy are essentially paying less in effective Tax Rates then the Middle Class. Where you also has a Fiscal Policy that you want government to do big things but you don't want to pay for them. Because raising taxes in America are still very unpopular, almost as unpopular as socialism as an ideology. And you don't want to cut government either to pay for your Government Expansion. Because you might have to cut popular Government Programs and that could hurt you politically. We have ten years of evidence of this and to a certain extent we are still doing the same things today. One of the benefits of the Debt Debate is we are moving away from a discussion of how much we can Borrow and Spend and moving towards a discussion of how much we can afford. And how to pay for it and what we can no longer afford and what we need to cut back on and what needs to be reformed and how.
The Economic System that does work is called American Capitalism, its not European Capitalism or Chinese Capitalism or Japanese Capitalism. But American Capitalism where have vast Economic Freedom but where we regulate the economy well to prevent people from unfairly abusing innocent people. Where everyone pays taxes based on their ability to pay, with the wealthy paying the most and go down from there. But where are taxes are low enough to encourage people to work hard and earn a good living, get a good education and so fourth. Where we have an Education System that educates everyone well enough to go out and get the skills that they need to be Self Sufficient and successful. And where we have a Safety Net that catches people who fall so to speak but gives them a hand up so they can get themselves on their feet. This is the Economic System America had from the 1940s or so up until the last ten years or so. That made us the number one Economic Power as well as Military Power in the World. Because almost everyone would be able to to a shot at making it in life on their own and not be dependent on Public Assistance.
Its not that America needs to scrap its Economic System and move to some type of Socialist Economic System thats common in Europe. That Democratic Socialists in America would like to see us move to. Its that we need to get back to American Capitalism the system that made our economy what it was just ten years, we need to go back to what works. And scrap what we now have ten years of evidence to know what doesn't work.
Click on the link of the blog to see Socialist Economist Richard Wolfe on the American Economy