Lesh
Diamond Member
- Dec 21, 2016
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From the Hill
American Democrats: Not capitalists, not socialists
Capitalism in its pure sense supports a free market economy and no government intervention in the private sector. In the twentieth century capitalism in the United States (and Europe) was reformed – during the Progressive Era, the New Deal Era, and the Great Society Era.
What emerged as a result of these periods of transformation was a political-economic system that was a mixture of capitalist and socialist elements: this mixture has often been called the ‘mixed economy.’ A pure capitalist economy, the “laissez-faire economy,” has no conceptual room for a social safety net or regulations of private industry or rights for workers. A mixed economy, on the other hand, does.
It is frequently said that FDR in politics and John Maynard Keynes in economics "saved capitalism." In a sense this is true, but the new system they, and others put in its place, was not capitalism in any very interesting sense of the term. The term capitalism can only be stretched so far. Why else was the term "mixed economy" created other than to point to the inadequacy of using the term capitalism to describe this hybrid system?
American Democrats: Not capitalists, not socialists
Capitalism in its pure sense supports a free market economy and no government intervention in the private sector. In the twentieth century capitalism in the United States (and Europe) was reformed – during the Progressive Era, the New Deal Era, and the Great Society Era.
What emerged as a result of these periods of transformation was a political-economic system that was a mixture of capitalist and socialist elements: this mixture has often been called the ‘mixed economy.’ A pure capitalist economy, the “laissez-faire economy,” has no conceptual room for a social safety net or regulations of private industry or rights for workers. A mixed economy, on the other hand, does.
It is frequently said that FDR in politics and John Maynard Keynes in economics "saved capitalism." In a sense this is true, but the new system they, and others put in its place, was not capitalism in any very interesting sense of the term. The term capitalism can only be stretched so far. Why else was the term "mixed economy" created other than to point to the inadequacy of using the term capitalism to describe this hybrid system?