The Who Mailing List Digest, V11 #198



David Huntington huntington at mindspring.com
Fri Jul 23 09:20:21 CDT 2004


On 7/23/04 9:27 AM, "The Who Mailing List Digest" <thewho-request at igtc.com>
wrote:

> I think you guys may be confusing Capitalism with a Free Market Economy.
> Capitalism refers to the use of wealth to produce more wealth.  Capital
> includes factories, operating budget, machinery and sometimes workers that
> represent the owner's investment in a business.  It has nothing to do with
> how goods are offered for market, or what benefits workers have.  There is
> no problem in a Capitalist economy with the government awarding monopoly
> status, subsidies, or even sole source contracts.  This is considered
> beneficial to the continued existence of valuable businesses.
> 
> A Free Market Economy, on the other hand, uses consumer choice to allocate
> resources.  Characteristics include private owership of property, free
> competition, prices set by supply and demand, and profit as an incentive to
> business.

Keets,

Thank you for the clarification. In all deference to Alan, who also seems
quite knowledgeable,for my purposes it isn't too important which words you
assign to the idea as is the idea itself. So, according to your definition
above, it is indeed a free market economy that I was thinking of. Have I
been mistaken this whole time to think that Capitalism and free market
economy were synonymous with each other? That's scares me.

Therefore it is within reason to believe in free markets while being wary of
Capitalism. Or to get beyond the terminology, unchecked capital freedom
ultimately undermines a free market economy. This is a breakthrough in
understanding for me. Thank you.

I know this is seriously getting away from The Who, so Alan, Keets or anyone
else who wants to put me further on the path to understanding here, I really
would appreciate a response off-list.

David




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