socialism is not possible until capitalism has exhausted its ability to expand and increase profits. that the end is coming is hard to dispute, and i challenge anyone to dispute it. American capitalism, in its final iteration, may replicate China's totalitarian capitalism, a brutal system sustained by severe repression where workers are modern-day serfs.
I dispute that capitalism is nearing its end. I think it is actually ready to breakout and become even stronger...though that may take a while.
BTW - America does NOT have capitalism or free market economics right now. As Brain357 said, it is currently cronyism. Or more specifically, crony capitalism.
'An economy that is nominally free-market, but allows for preferential regulation and other favorable government intervention based on personal relationships. In such a system, the false appearance of "pure" capitalism is publicly maintained to preserve the exclusive influence of well-connected individuals.'
What is crony capitalism? definition and meaning
The above is what we have now and have had since at least 2001 (when the Fed really started to take control) and soon after when GWB (with good intentions, I think) deliberately tried to alter the housing market. That led to the Housing Boom and then the housing bust and to the 'Great Recession'.
But government manipulation did not stop there.
The Fed decided to bail out all the banks - even going so far as to (in essence) buy the then-largest insurance company in the world, AIG. Plus, the government bailed out GM and Chrysler and also both GWB and later Obama threw over a trillion at the economy in the form of still more bailouts, economic stimuli, etc..
But they still were not done.
The Fed started ZIRP (zero interest rate policy) and various QE to directly influence the stock market - and it succeeded wildly. Now many corporations are hip deep in record buybacks of their stock. And some are now in big doo doo over it (see GE). This despite the government/Fed having dumped over $12 TRILLION dollars into the economy.
Just look at the market's earlier this week? They went nuts when the Fed strongly hinted (but just hinted) they might slow down interest rate hikes. That is how utterly and COMPLETELY dependent on the government/Fed the corporate economy is.
Since 2001, there has been virtually NO capitalism in America - not on a large scale. 'Too Big to Fail' is the new mantra of Wall Street.
Corporations don't have to take chances. They just have to keep getting the government/Fed to keep spiking the punch bowl...keep interest rates low and deficits high, which indirectly and artificially help the economy at taxpayers expense.
However, there is one rather large problem with all of this - the wealthy are fast leaving the middle class/poor behind. The former have the connections to huge amounts of cheap money which they throw into a stock market that is set on auto pilot by the Fed DELIBERATELY manipulating it upwards. However, the rest of the public cannot gain access to this game...so they just fall behind.
So, if you are blaming capitalism and free enterprise for the mess that is today's economy? You are blaming the wrong thing.
You should blame crony capitalism.