As discussed through the economical literatures the western countries like United States are following the capitalist structure which requires the empowerment and encouragement of the government for the privatization with almost zero intervention of the government on financial issues (Sloman, 2004).
The October 14, in the year of 2008 the ministry of treasury and finance of United States unveiled a plan to inject $250bn of the $700bn bailout into financial institutions [1].
Is that called the capitalist structure or following the communist way of controlling deficits by the government? Is that could be the last days of surviving of the capitalist system through the societies?
References:
- "Aljazeera news" Global financial crisis followed by URL: http://english.aljazeera.net/business/2008/10/20081014122558818683.html
- Sloman John, (2004), Economics, 5th edition, Pearson Prentice Hall.
7 comments:
Well, as it can be inducted through your blog the entire of the countries which are alleging as the mix or capitalist economic structure must be closed down drastically. You know, the world’s traditional economic system must be revised. The current crisis doesn’t mean that capitalist requires the prevention of government’s intervention, but the need of imposing and introducing the new structure of economy must be prioritized as it has been discussed through the recent meetings in the United States.
Due to for seen able future best way is that all continent should have a gathering to discussed the problem which is facing economy of the word to solve and get rid of this problem in my opinion the best way is to create a job and make people to work longer hours and sacrifice a bit of time the same in (first and second world war),we have to face that all of us in crises so we have to put our hand together and build new economy world so everybody will new life in future .
The world economy is facing its biggest test since the Industrial Revolution. Will the hegemony of the rich countries be preserved? And in the future will workers continue to lose out relative to the owners of capital?
Lately in this year (2008), crisis economy almost happens in every country in the world. What America did in 14 October 2008 is not last day of surviving; they just tried to find the way out of their problem and every country also try to do something which try out of their crisis (problem).
In my opinion the financial crisis is test for capitalist structure system.there are two main type of economics capitalist and the communist,In my opinion the capitalist is more adapt for now,and the communist adapt for the future because as we know when the country past the capitalsit time the people already very rich so the nest step is communist system.
n, marvelous comment.It's really crazy how people are attacking the capitalist system. Well, its easy, nobody forces you to be capitalist, you can go communists!! Hitting on capitalism is pure nonsense.Capitalism is what happens when people can own property, keep profits and use money to make exchanges. It is inevitable that capitalism is prone to sudden catastrophic failure. This is because this very ugly and deeply human enormous habit of greed.Every economic expert admits that the current crisis were caused by lenders and borrowers, by financial firms,by governments and independent regulators, and not the system. It would a terrible mistake to allow a few months of crisis to undermine 60 years of success. Yes, the system needs some reforms, but only capitalism would make us celebrate private wealth, the freedom to make deals and keep profit, and we cast a sceptical eye over regulationIIha.
By "capitalism" I mean an economic system characterized by private property and voluntary exchange. By "communism" I mean an economic system characterized by public property and compulsory exchange. The myth that the America is a "capitalist country" is widespread. According to the Communist Manifesto by Marx and Engels (first published in 1848), the following ten steps are necessary for a communist takeover:
1. "Abolition of property in land and application of all rents of land to public purposes.
2. A heavy progressive or graduated income tax.
3. Abolition of all right of inheritance.
4. Confiscation of the property of all emigrants and rebels.
5. Centralization of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly.
6. Centralization of the means of communication and transport in the hands of the state.
7. Extension of factories and instruments of production owned by the state; the bringing into cultivation of wastelands, and the improvement of the the soil generally in accordance with a common plan.
8. Equal liability of all to labor. Establishment of industrial armies, especially for agriculture.
9. Combination of agriculture with manufacturing industries, gradual abolition of the distinction between town and country, by a more equitable distribution of the populace over the country.
10. Free education for all children in public schools. Abolition of children's factory labor in its present form."
The average for my "communist percentages" is 53.5%, that is, according to these criteria America is halfway between capitalism and communism. Note that for four of the most important criteria - education, communication, banking/currency, and taxation - my "communist percentages" are very high.
Note that the U.S. Constitution specifically empowers Congress to implement five of the communist planks. In practice, Congress has demonstrated its power to implement, at least to some extent, all the communist planks.
Also note that the two essential distinguishing characteristics of capitalism are private property and voluntary exchange. The U.S. Constitution gave Congress wide powers to violate private property and voluntary exchange. In practice, this is exactly what Congress has been doing. The Bill of Rights has slowed down Congress's march towards communism. But gradually the Supreme Court has been effectively dismantling the Bill of Rights. Today many courts rule defense based on the Bill of Rights inadmissible, particularly regarding tax matters.
Capitalism is individual power. Communism (including socialism and much of modern "liberalism") is coercive state power. Private property and voluntary exchange constitute individual power. Government ownership and regulation attempt to eliminate individual power.
The solution is for individuals to seize back the power they have relinquished.
So is this the Liberty that the revolution was fought for? Or has this Government been corrupted and destroyed from within.
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