Busting the mythology of American capitalism, we are not capitalist

This is one of the most prevailing mythologies that exist in culture and on the boards. Everyone is always talking about how great capitalism is but we haven't been capitalist in over 100 years. So how is our current economic paradigm due to a system we don't have? Weird huh.

That's right... but first. Let's start by establishing a definition of what capitalism.

Investopedia, Capitalism

Capitalism is an economic system in which capital goods are owned by private individuals or businesses.

Got it, seems about right so far..

The production of goods and services is based on supply and demand in the general market (market economy), rather than through central planning (planned economy or command economy).

Central planning?? You mean like the Federal Reserve our CENTRAL bank!!??

Read that again, CENTRAL bank.

Federal Reserve.gov



All of the things it list here show how it has it's slimy fingers in every aspect of our economy through monetary policy and the control it exerts over the banks that are major shareholders.

Back to defining capitalism...

The purest form of capitalism is free market or laissez-faire capitalism, in which private individuals are completely unrestrained in determining where to invest, what to produce or sell and at which prices to exchange goods and services, operating without checks or controls.

Operating without checks or controls... see 2 pictures above....

Voluntary trade is the mechanism that drives activity in a capitalist system. The owners of resources compete with one another over consumers, who in turn compete with other consumers over goods and services. All of this activity is built into the price system, which balances supply and demand to coordinate the distribution of resources.

So how can we have competing consumers over goods and services with government regulated false scarcity paradigms create by local, state and national level programs like requiring zoning and approval to start business's based on perceived needs of the community?

Waterloo deny's liquir licensce

The vote comes exactly two weeks after council members rejected a liquor license renewal for 5 Star Snacks and More, 437 Sullivan Ave., and a new license for the proposed NC Mini Mart, 1459 Ansborough Ave. Neighborhood opposition also was the determining factor in both of those cases.

How is this not central planning of an economy on a local level? I know I know you are going to make a property value and crime argument but that's not the point. The point is in a free country/ capitalist market there should be no artificial restrictions hand down from central planning authorities to consumers/ citizen's trying to open a business.

IN A FREE COUNTRY.

Tax brakes for larger corporations

A company that is in the planning phase of a major business attraction or expansion project that will include a capital investment in real and/or personal property may be eligible for a P.A. 198 Industrial Facilities Tax Exemption (tax abatement).

So, how in a truly free market that isn't centrally planned/ managed can a government offer tax breaks to 1 company and not another?

Equities.com

Government subsidies, tax breaks, and other assistance intended to support struggling markets or encourage certain business practices. According to a 2012 Cato study the U.S. government spends $100 billion on corporate welfare annually.

Sow how in a system of capitalism can government centrally plan and decide what business is to remain competitive and what isn't it? How can they be competitive when one business receives tax breaks and subsidies and another doesn't?

Back to Investopedia...

By contrast, the capitalist suffers losses when capital resources are not used efficiently and instead create less valuable outputs.

List of largest government bailouts

The Great Depression
The savings and loan bailout of 1989
The collapse of Bear Stearns, an investment bank and brokerage firm
American International Group (AIG), an insurance colossus with global reach
Freddie Mac and Fannie Mae, two government-backed mortgage lenders

Here we see again how business's are not forced to suffer market fluctuations and forces based on their ability to adapt. They are bailed out by the government and Federal Reserve printing money.

Fed's Balance Sheet

The Fed balance sheet is a breakdown of the assets and liabilities held by the Federal Reserve. This report essentially outlines the factors that affect both the supply and the absorption of Federal Reserve funds. The Fed balance sheet report reveals the means the Fed uses to inject cash into the economy and is formally known as the Factors Affecting Reserve Balances Report.

So the Federal Reserve prevents much NEEDED crashes that should be the foundation of building a better economy and allowing business and industry to fail and allow others to come in scoop up the assets and create better systems. Essentially the Fed and US government centrally planning the economy has prevent our economic evolution.

Although efforts certainly helped ease bank's liquidity issues, critics contend QE was a giant drawback was the distortion of free market principles.

Yup.

We are not capitalist.

We are a semi relative capitalist country massively involved in socialist kensyian bailout, corporate and private welfare operation's. Free market/ capitalist principles cannot be applied to only the working people of this country they need to be applied to the system as a whole in order for the system to work properly.

Time to stop repeating the American mythology of a free market and capitalism and face reality. We need to end the Fed and allow for state run currencies and centralized state banking systems that compete against one another in order to move closer towards the actual economic principles that work.

Stop facilitating this lie by spreading it's untruth and face the facts. Many of you will defend our system to the death in turn defending the Fed but I won't and you shouldn't either. If you are a true conservative or libertarian you need to demand a more fair system of capitalism.

a reply to: toysforadults

Great OP, folks NEED reminding of the True beast behind the madness

Time to stop repeating the American mythology of a free market and capitalism and face reality. We need to end the Fed and allow for state run currencies and centralized state banking systems that compete against one another in order to move closer towards the actual economic principles that work.

Stop facilitating this lie by spreading it's untruth and face the facts. Many of you will defend our system to the death in turn defending the Fed but I won't and you shouldn't either. If you are a true conservative or libertarian you need to demand a more fair system of capitalism.

Indeed, well said!

It dawned on me in the 1970's that we were closer to corporatism (fascism) than free market capitalism. The amount of state and federal control over business is absolutely insane and has so stacked the cards against the small business owner as to make it an impossibility for your average entrepeneur. Before 1900 you could move to America from Europe and start selling apples from a cart with no license, no taxes, no permits of any kind. We have regulated ourselves to death.

a reply to: Asktheanimals

That's why Amazon is now championing a $15 minimum wage. Not because they care about their employees. But because they have the infrastructure in place to implement it.
And by lobbying for legislation they have the opportunity to further choke out their competitors.

But with all that, our bastardized centrally banked version of capitalism is still preferable to socialism 10 times out of 10.

It's why all the immigrants want to come to America.

The checks and balances are being avoided by the very organizations that are to save us from the power hungry Fascists/Communist or the Dictator/King getting control of the military and law enforcement. From what I have seen the last few years, many are in on the treason.
Is it too late?
I hope not.

originally posted by: Asktheanimals
It dawned on me in the 1970's that we were closer to corporatism (fascism) than free market capitalism. The amount of state and federal control over business is absolutely insane and has so stacked the cards against the small business owner as to make it an impossibility for your average entrepeneur. Before 1900 you could move to America from Europe and start selling apples from a cart with no license, no taxes, no permits of any kind. We have regulated ourselves to death.

Yup! That's why we have such a wealth concentration.

We need to get back to a system where people have some autonomy to create their own vehicle's for wealth generation. Also, I'm totally open to the idea of people creating their own currencies.

That's REAL true capitalism, the ability to create your own currency and compete with the central banks.

Better keep my eye out for snipers with that comment though. Don't go to Dallas.

a reply to: Justoneman

another major problem we have is the checks are balances are only being applied situationally instead of evenly across the board.

the cronyism in the system stems from overreach and centralized power in the first place. it's the entire philosophy or foundation of our beginnings. central power and to much power was thought of as dangerous to democracy or freedom

If #USA really were a capitalist society, then corporations wouldn't be able to defer loses from last year against taxes from upcoming years.

Losses would simply be that - losses.

The awful thing about TARP that most Americans don't get is that US banks were bailed out by George W Bush (with mostly Democrat support) but allowed to claim those losses AGAIN against their upcoming taxes. Same with GM (rescued by Obama)

In a capitalist society, those banks would have gone under (as would have GM, Chrysler and many other big companies) and the richest Americans would have lost BILLIONS while poorest would have been out of work.

Capitalist or Communist you still got to pay to see a doctor