They like to think they understand it, but they really don't.
Think about the consequences of leaving the free market unregulated and letting the high powered corporate lobbyists make all the rules. This is what's resulted and these are all FACTS:
1) A shockingly huge wealth disparity between the mega rich and the middle class and poor has grown over the course of a few decades. Wages for the poor are way behind on the rise of inflation despite productivity soaring in most sectors. Most income gains have gone to the top earners in this country for the last few decades.
In actual capitalism, which is not what we have currently, the people who become wealthy do so through hard work, and those who fail do so because of their own ineptitude. It's a system in which everyone is equal as people, nobody is assisted by government, and everyone keeps what they earn. Unlike Socialism, in which failure is rewarded with money stolen from those who earned it.
2) Wall Street corruption directly resulted in the Great Recession of 2008.
You're mistaking what we have for capitalism. What we have is a Fascistic Corporatist State, a result of a government that is far too powerful selling its power to lobbyists, which results in the corruption we see, which happens to be what is REALLY responsible for the recession. Spoiler; Making the government more powerful does not solve the problem of government corruption. Without the government, businesses would be at the mercy of their consumers, without the government there to bail them out.
3) Corporate crime largely goes unpunished, and when it is punished, the results are petty fines.
Corporate Crime is a result of the government preventing businesses from being at the mercy of their consumers.
4) Our for-profit healthcare system has resulted in many basic, critical healthcare services being unavailable to the poor and in some cases the middle class. Prescription drug prices, specifically, in this country are astronomically high in comparison to other countries providing the exact same drugs. If you dumbasses actually think our healthcare system was even remotely affordable prior to ACA then you might as well relinquish your voting rights because you aren't smart enough for the right.
Our healthcare system is not capitalist, regulations prevented providers from competing with each other, which in turn prevents the system from being optimal. Prescription drug prices today are also a result of the government preventing businesses from competing. Drugs use to cost pocket change, but the government created patents, which raised prices drastically.
The ACA cost premiums to rise sharply. My family used to pay 50$ for all twelve of us. They now pay 150$ for six of us, and our family is considered below middle class.
5) Cutting taxes for corporations and top earners does NOTHING to stimulate the overall economy. Why? Because it's easier to keep the money they save rather than invest it. They are already wealthier than ever before. There is no incentive for them to invest in a stronger labor force.
That's completely false. Lower taxes help smaller businesses expand, which creates more jobs, and causes the economy to improve. Big businesses that the government hasn't already forced into a monopoly with their regulations also risk losing ground and money to their competition if they don't expand, meaning money IS incentive enough, regardless of how much they have. It has been proven numerous times that the economy improves with lower taxes.
Now am I suggesting we get rid of capitalism? Absolutely not. I just want a system that guarantees more capital to the poor and shrinking middle class. The basics of the free market system are what helped make this country a super power. It's just gone awry over the last couple of decades.
Here's a bonus task: name ANY republican economic policy that has benefited the middle class. Go ahead. I'll wait.
What has gone wrong is the government expanding as time goes on. This is not capitalism, it's fascistic corporatism. Competition has been strangled out by government regulations, diminishing consumer choices. Making the government the only monopoly through Social Control takes that problem even further. As a matter of fact, more government is not the solution to too much government.
You are right about one thing, though. Republicans don't understand Capitalism. Neither do Democrats, Socialists, Liberals, or anyone else that believes America is capitalist.
1) This idea that hard work will allow any American to prevail used to be true, but it isn't anymore. A can-do attitude has become less and less effective as a means to get ahead.
2) ACA failed to control rising healthcare costs, but many of the rises in costs would have happened anyway. That's the nature of the for-profit system.
3) Look, just because it sounds like it makes sense to say the less regulation the better, it doesn't mean this idea is the reason why poverty exists and why the middle class continues to disintegrate. It's because of the rising power of the 1% who make all the rules. If you look at BLS statistics, the number one reason businesses fail is NOT because of government red tape - its because of a lack of demand for the product.
4) Yes, lower taxes help small businesses but that isn't my point. I'm saying that cutting taxes on mega corporations and the wealthy does not grow the overall economy.