pkeets at hotmail.com
Sat Jul 24 00:26:41 CDT 2004
>And, Ms. Keets needs to know that I'll take the definition of Capitalism
from a Harvard Phd'd professor in Economics over "Dictionary.com" anyday.
<sigh> This group certainly does like to squabble over definitions, doesn't
it? Anyhow, Mr. Economist, here's what Campbell McConnell has to say about
it. (You remember McConnell, right?) Hopefully this will clarify things to
the satisfaction of at least some of us. Notice that a free market system
is not required by all capitalist systems.
Unfortunately, there is no neat and universally accepted definition of
Pure or laissez faire capitalism is characterized by the private ownership
of resouces and the use of a system of markets and prices to coordinate and
direct economic activity. In such a system each participant is motivated by
his or her own selfish interests...
The polar alternative to pure capitallism is the command economy or
communism, characterized by public ownership of virtually all property
resources and collective determination of economic decisions through central
Authoritarian capitalism...the economy was subject to a high degree of
governmental control and direction, but property was privately owned.
Market socialism is characterized by public ownership of resources coupled
with...reliance upon free markets to organize and coordinate economic
Here's what McConnell has to say about the US's current economic system:
...Government plays an active role in our economy in promoting economic
stability and growth, in providing certain goods and services which would be
underproduced or not produced at all by the market system, in modifying the
distribution of income and so forth. In contrast to the wide dispersion of
economic power among many small untis whcih characterizes pure capitalism,
American capitalism has spawned powerfull economic orgainizations in the
form of huge corporations and strong labor unions. The ability of these
power blocs to manipulate and destroy the functioning of the market system
to their advantage provides a further reason for governmental involvement in
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