Wednesday, October 29, 2008

Headlines tell the story


These headlines from CNNMoney struck me as revealing. The standard line is we are a capitalist country. Not true. Under capitalism, there is no central bank, and Wall Street would only be waiting for trading to begin rather than the latest Fed announcement. Under capitalism, there is no such thing as a firm, or three firms, or ten firms, too powerful not to save. The powerful can fall as well as the weak. Not letting the market work hurts our well-being. But letting the market work is capitalism.

We are not a capitalist economy. Corporatism, crony capitalism, state capitalism, neo-mercantilism, interventionism -- one of these terms is more fitting for the kind of economy we have. The state rules, not the market. The state doesn't rule absolutely, not yet, but that's the end-game.

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