Now I am So Confused: What is Capitalism?

Question

Isn't capitalism the survival of the fittest? More huge banks were bailed out today and Wall Street had an o****m. I thought that Wall Street was all about "Capitalism". Why did Wall Street applaud such a blatant social safety net for these massive banks?

Since the taxpayers are going to pick up the tab, isn't this socializing the risks and costs of operation? Isn't it socializing the risks and costs of operation when taxpayers have to foot the bill to provide sewers, streets, etc to come to businesses? Isn't it socializing risks and costs when you base your company in the Caymans to avoid taxes? Isn't it socializing risks and costs when a company polutes the environment or poisons/injures people without consequence?

Soooo....what is Capitalism? Maybe it is dying?

Profits are privatized more than ever, so at least we know that capitalism is not completely dead.

Answer 1

The government doesn't know when to leave things alone and let them self-correct.  We ARE talking about a democrat-controlled Congress and most of them are socialists that believe the government is the answer to everything.  That's the problem!

Answer 2

That is what is killing America

Answer 3

"Capitalism" is an economic system where the means to acquire wealth (capital) is privately held.1  A "market economy" is an economic system for distributing wealth involving markets.2  A "free" market has no controls.  Typically capitalism includes the use of "market economy.”  There is no government today that uses totally free markets in it's economic distribution.2  The system of government in the USA was created as a representative democracy.3 and influenced by Adam Smith4 had capitalist protections.   Marxism is a political philosophy that describes a theory of centralized control of distribution ("for the good of all") and is contrasted with "free markets".5

Socialism is described under Marxist philosophy as a transition from Capitalism to Communism.5  In the USA, socialism is used pejoratively as a synonym for communism and has been avoided more than in countries in Western Europe or any other capitalistic, democratic country.  It is undoubtedly one of the reasons why the USA has no system of universal health care.  

What you are talking about is a very popular topic of discussion if you know where to look.  A search on "socialism for the rich" 7 gives quite a few results and will even lead you to "socialism for the rich and capitalism for the poor."8.  Probably few who complain of a "welfare" state realize that the primary beneficiaries of government handouts are not the poor and have not been for some time.  (Perhaps starting with building of the Transcontinental Railroad more than 150 years ago.)10

Yes, this does turn around what you have been taught in school and still appears in a conventional definition of socialism 6.

We live in interesting times.  It suggests that our system is not working as originally designed.  Somewhere along the line in addition to wealth, power the basis for it in government has shifted to the wealthy which has in turn been used to promote more wealth.  This is evident in the growing disparity of wealth in the USA.9 and the fact that this wealth is not "trickling down" as fast as it is amassed.  But where does it end?  Does it end with acquiring that wealth or are we also beginning to see/have seen that same power used to protect and obfuscate the origin of that wealth?  Yes, we live in interesting times.

Answer 4

We have a capitalist economy with sometimes the Feds bailing out certain banking institutions that are valuable to keep the economy from failing and falling into a depression.

The Feds are also finally fixing what they broke in the late '80's when they loosened the lending rules to allow easier credit to people with poor credit scores.

Answer 5

Whatever the labels that we put on things, one thing is true, I think.  Everyone does what is in their interests.  Virtually all peoper are interested in clothing and feeding themselves.  Beyond that, people have mixtures of material and non-material interests.  However, it is people who seek wealth and power who move the world.

These people were interested in the bail-outs because it would protect their financial interests.  Their paid shills will proclaim various reasons that the bail-outs help ordinary people.  But we would be wise to consider all of the motives (and understand that we can't know all of the inner workings of these deals).

If capitalism is doing what benefits you, then this is capitalism at its finest.  However, I argue that people always do what benefits their interests.  If a socialist nirvanna arises in which everyone choose to act to the benefit of their neighbors, that still is the result of their interest - their choice.  And if a socialist state arises through the imposition of a dictatorship, the interest of the ordinary people remains even though it is challenged by the oppression.

A more concise definition of capitalism is that it embodies the strict ownership of property in private hands and a respect for that property in laws.  Given that definition, we should question to what extent the bail-outs are a function of capitalism.  Afterall, tax money is taken from us whether we consent or not.  The regulations that cover Wall Street almost all violate private property in some way.  While they are billed as protecting the small investors, I believe that they usually end up benefitting the elite.

There is a difference between those who proclaim to be capitalists and capitalistic principles.

Answer 6

A market economy is an end independent spontaneous order which coordinates the decision of millions of individuals through price signals that indicate relative scarcities.  It is supported by regularities in the shape of law that protect the rights of ownership in things that are scarce and not in things that are plentiful, for example, generally air.  Those regularities also permit the transfer of property by consent and the entering of enforceable agreements as to future economic conduct.  Rights are not protected against competition.

The test of whether a transaction is beneficent is whether both parties to it would believe that he or she is subjectively better off as a result of the transaction.  Third parties are protected by rules of law that ban transactions such as an agreement to commit murder.

Answer 7

Capitalism is essentially a free market in which persons may compete in order to earn profit. A lot of free market countries (i.e. Canada, U.S.A., Britain, Germany etc.) may sometimes fall under the category of a mixed economy, which combines capitalism and governmental control to earn a combined benefit.. Perhaps the US is just using some governmental control to manage itself better

Answer 8

capitalism is a form of government basically. the united states has a capitalistic government right now. this just means that common people can make profit off of things...as opposed to communism where the government controls the economy.

Answer 9

What happened in the bank bail out is where we are headed a socialized government. It's a sad day when the government feels the need to bail out people or banks because of their poor decisions...... makes me wish I had bought a 2nd house.

Imagine this happens under a Republican president, pray Omama doesn't get in, or we might be bailing out everyone who defaults on a loan..........