Even though TRUE capitalism has failed, it has resulted in the highest average income across the world. AND it hasn't lead to mass exterminations and starvation like other failed systems such as Socialism, communism, and soon to be Marxism...
To some, capitalism is a monster because big business has monopolized markets, but - to my limited understanding of economics - monopolies shouldn't have been allowed to be formed. Monopolies are what killed true capitalism, AND "bail-out funding from governments to save large scale businesses" are also a huge factor in the death of the free market.
Studied a lot of economics in my years. Let me give you what I believe is the truth:
Monopolies in a capitalist system function differently than the monopolies we know. Take a couple obvious ones: Auto, Airline, Telecom, Utility, Healthcare, Tech, Rail.
They all have some sort of government involvement, whether it be: regulatory, direct funding, heavy taxation, favorable legislation, the list goes on.
They create artificially high barriers to entry, so if you or I wanted to create our own car company, it wouldn't be feasible.
THAT is why monopolies (in the traditional sense) are allowed to exist (and are even promoted) in a capitalist-lite economy.
In a true capitalist system, a monopoly would only be allowed to exist if it continued to provide a value to its consumers. And even that isn't enough to stop something bigger and better from coming along. Cheers.
Even though TRUE capitalism has failed, it has resulted in the highest average income across the world. AND it hasn't lead to mass exterminations and starvation like other failed systems such as Socialism, communism, and soon to be Marxism...
To some, capitalism is a monster because big business has monopolized markets, but - to my limited understanding of economics - monopolies shouldn't have been allowed to be formed. Monopolies are what killed true capitalism, AND "bail-out funding from governments to save large scale businesses" are also a huge factor in the death of the free market.
Studied a lot of economics in my years. Let me give you what I believe is the truth:
Monopolies in a capitalist system function differently than the monopolies we know. Take a couple obvious ones: Auto, Airline, Telecom, Utility, Healthcare, Tech, Rail.
They all have some sort of government involvement, whether it be: regulatory, direct funding, heavy taxation, favorable legislation, the list goes on.
They create artificially high barriers to entry, so if you or I wanted to create our own car company, it wouldn't be feasible.
THAT is why monopolies (in the traditional sense) are allowed to exist (and are even promoted) in a capitalist-lite economy.
In a true capitalist system, a monopoly would only be allowed to exist if it continued to provide a value to its consumers. And even that isn't enough to stop something bigger and better from coming along. Cheers.
That makes sense alot of sense! Thank you, fren!