Why capitalism works most practical in a monetary system.

[bripat9643]

Can anyone name a nation or nations that practice a pure economic system, i.e. capitalism, socialism, communism, fascism, mercantilism, feudalism or other? Seems most economic systems are mixtures, as is the United States. I know no nation has ever practiced pure communism, but I threw it in anyway.

The classic liberal idiocy:

Pure capitalism doesn't exist, so it can't be a good thing.​

Simply to state it is to understand how moronic it is.

You can't answer the question.

"Can anyone name a nation or nations that practice a pure economic system ...?"

This is reality, not some liberal bizzaro world where nations exist solely to test out economic theories.

 

[bripat9643]

I assume by "pure capitalism" we're talking about a model with the following assumptions:

-Utility maximization by households/individuals
-Profit maximization by firms
-perfect competition
-frictionless prices and wages
-unlimited buyers and sellers
-perfect capital mobility
-no entry or exit barriers
-perfect information
-rational preferences
-no transaction costs
-no search costs
-capital, labor, goods and services are homogeneous
-no externalities
-economic agents are price takers

One can relax any of those assumptions and still be capitalist though. It only takes a glance to figure out that some of those don't always (or ever) hold in the real world and only serve to simplify how to think about economic ideas.

No one is talking about that, numskull. They are talking about a country with a government that doesn't interfere in the economy, whatever your imbecile theories of how humans behave happen to be.

BTW, none of the conditions you listed are required for capitalism to function. That's pure interventionist hogwash.

 

[Avorysuds]

Monopolies are the result of govt. favoritism. You'd be hard pressed to find an example of a monopoly formed through free market capitalism conditions.

This.
Back in the days of the robber barons the few businesses commonly called "monopolies" in fact *lowered* prices of goods for people below where they had been. Because the businesses were scared of competition rising up.
Libs are bad at math. Libs are bad at history. Libs are bad at logic.

A agree, and so would Ru Paul. Guys sound more and more like Ru every day =D

 

[regent]

The classic liberal idiocy:

Pure capitalism doesn't exist, so it can't be a good thing.​

Simply to state it is to understand how moronic it is.

You can't answer the question.

"Can anyone name a nation or nations that practice a pure economic system ...?"

This is reality, not some liberal bizzaro world where nations exist solely to test out economic theories.

You're right, we're talking about economic systems in actual practice not theories. There might be one or two countries that do not practice mixed economies, can anyone name one? Perhaps all economies are mixtures of two or more economic systems?

 

[JimmieD]

No one is talking about that, numskull.

Nice; is this how you typically make an argument?

They are talking about a country with a government that doesn't interfere in the economy, whatever your imbecile theories of how humans behave happen to be.

So you want to argue against (or really just insult) my theories of human behavior, but don't know what they are. Classic.

BTW, none of the conditions you listed are required for capitalism to function.

Never said they were. Maybe next time you should try reading before trying to cover up ignorance with insults?

That's pure interventionist hogwash.

Am I an interventionist?

 

[Whereisup]

In a "monetary system"? Is there any other system around except a monetary system? Does anybody in the greatest Country in the world still doubt capitalism? With capitalism comes graft, greed corruption and the freaking freedom to become rich and successful. Would you have it any other way? Why do we have this discussion every time a left wing democrat gets elected? Capitalism might have it's faults but surely even the self centered generation understands that socialism makes everyone equally miserable and poor and dependent on despots who live in luxury.

To be more specific, it is the kind of monetary system that is important. For example, some time ago, there were some monetary systems that didn't allow loans making interest. That is different from a monetary system which allows interest.

The there have been monetary systems based entirely on some physical item, such as gold, shells, cattle, etc. Monetary systems based only on bookkeeping are quite different.

Then, within monetary systems based on gold, some kept their coins pure gold while others mixed more and more of other metals into their gold coins over time.

Of course, we could imagine a large number of possible monetary systems that no nation has ever tried out.

On your other point, the international corporation system in the United States is quickly making it more and more difficult for an individual to become rich. The giant corporations can easily destroy a small business started by an individual, and frequently do.

So we no longer have a system in which it is as easy to become rich as it was 50 years ago, and the situation is getting worse.

If you carefully do some research to discover what us really going on, rather than what the ideal should be, you will become alarmed.

Jim