How does the U.S. economy differ from pure capitalism?

Question

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Answer 1

Because of government involvemnt, by way of subsidies, laws governing min wage, health insurance, workers comp, etc. Capitalism works because if a company has behaved poorly, or is unfair, or is unsafe, then workers and customers alike are free to purchase elsewhere. Take a look at when consumers wanted better gas mileage from their vehicles and American companies were slow to respond, we purchased from Japan or elsewhere. When reports of unsafe conditions exist beyond reason for even a hazardous job, consumers and workers tend to unite to stop production and/or stop purchasing until a company takes certain measures. There are also lawsuites by anyone injured, or worse, or there are health concerns. These produce immediate reaction from companies. But when government gets involved then taxes are involved, regulators by the government, these must be paid for, and the ones who pay are consumers. Changes by government measures not only include the costs for the gorvernment but also by what ever measures consumers and workers take. Leaving the fed or state out of business, ultimately leads to better goods and services for more reasonable prices. The only exception/s there could be is where public health and safety are at risk.

Answer 2

Here are some differences

1) In pure capitalism, the U.S. post office and electric companies would be completely privatized

2) Housing Agencies like Fannie and Freddie would never exist (in fact government welfare wound't exist)

3) public universities wouldn't exist

4) antitrust and all other gov. laws on businesses wouldn't exist (e.g. there would be no better business bureau to protect consumers)

Those ideas might get you going.

Like another poster says, no country has pure capitalism, but the U.S. and U.K. are the closest.

Answer 3

"Pure capitalism" doesn't really exist, just like "pure communism" never realy existed. There have always been some kind of laws that diluted the unbridled power of money. From the beginning there were laws in the United States to prevent private monopolies from forming. It was not deemed in the best interest to allow one person or company to completely control an important industry. There have always been bankruptcy laws to allow a person to recover from their debts without being thrown into prison. There have always been estate taxes so that a family could not pass all of their wealth down from generation to generation without facing taxation. And there have been tax credits so that people will invest in things that the government deems to be valuable for the country.

In addition there is the spending power of the goverment which changes the economic landscape. The government mandates social programs which wouldn't exist without the government.