Oswaldo Rayburn: The US hasn't been Laissez Faire for quite a while since the 30's to be exact, we hit another nail into it in the 60's and up. It is a major part of American culture and philosophy nevertheless.
Karl Jantzen: Economic systems determine what to produce, how to produce, and who will receive production. An economic system must also have the ability to adapt to changing economic environments. Capitalism is an economic system which deals with the above issues through the following characteristics: 1. Private property-the right to own resources and bequeath property 2. Freedom of enterprise-own a business 3. Freedom of economic choice-work/not work, spend/not spend 4. Role of self-interest a. People are by nature economic creatures b. Self-interest is a fundamental characteristic of people 5. Competitive market system a. Many buyers and sellers b. Market participants, buyers and ! sellers, have little control over price c. Competition performs the organizing and controlling functions for a market economy 6. Limited government ("laissez-faire") refers to the idea that government should let markets be with a hands-off philosophy) 7. Creative destruction a. Change involves the creation of improved economic structures based on technology and the destruction of inefficient economic structures. b.. Capitalism allows this destruction of the least efficient processes/ activities/ products to take place. ...Show more
Luis Farlow: In theory or in practice?In theory, the capitalist market is the most efficient possible, an invisible hand that always give the best results - but only if "best" means most total wealth. The capitalist market says nothing about wealth distribution, quality of life, etc.In practice, the capitalist market leads to monopolies,http://en.wikipedia.org/wiki/Robber_baron_(industr...to boom! s and busts (as we've are seeing in the daily news); major pol! lution and other environmental damage (destruction of habitats, severe overfishing, global warming, acid rain, etc.) - worse than now because there would be no EPA, etc.; to wide disparities of income; etc. It also tends to destroy itself as it relies on the rule of law, but gives everyone incentives to break the law.In full laissez-faire capitalism, we see most people remaining ignorant because most people can't afford private schools.http://en.wikipedia.org/wiki/Laissez-faireRoads are rare and poorly maintained because the government isn't in the road-building business, and private industry finds it hard to do it without a great deal of public money. (Though the railroads in the U.S. were built with private money, the U.S. government had to offer major incentives to the railroad companies in the form of land. http://www.coxrail.com/land-grants.htmThis is not supposed to be necessary under capitalism.)Foods and drugs are frequently tainted with poison (as in the recent mil! k scandal in China) because the government does not regulate any industries, and cutting corners makes for greater profits.http://news.bbc.co.uk/2/hi/asia-pacific/7631265.st...There is a good reason no one (even those who claim they do) really wants to live under a purely capitalist system and that even in the U.S, which boasts of its capitalism, http://www.nytimes.com/2008/09/18/business/worldbu...we have a mixed economic system:http://en.wikipedia.org/wiki/Mixed_economyhttp://en.wikipedia.org/wiki/CapitalismThis isn't to say that abandoning capitalism altogether is a good idea. We have a mixed system because none of the "pure" systems give us the results we want....Show more
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