Name That Economy!
After reading this week’s Newsweek: October 13, 2008, I decided to summarize a good article. In the wake of the failures in Wall Street, Main Street, Mortgage, Credit, and Policies… the U.S. economy has shifted from capitalism to everything in between. Let’s take a quick look:
Capitalism: Production is controlled by private individuals to gain a profit and is determined by supply and demand (free market).
Where are we now? Here are some of our options:
1. Corporatism: An economic ideology where corporations and government merge together.
2. Dirigisme: An economic philosophy where government directs its resources (i.e. money), towards specific industries and technology.
3. Mercantilism: Export more goods and import less; sell exported goods at high prices for profit.
4. “Life-Jacket Capitalism”: Two words “Bail Out” Government polices the free market and intervenes at a time of crisis.
5. Rube Goldberg Capitalism: Domino-effect (as seen with housing problems)
What I believe it should be:
1. Creative Capitalism: Coined by Bill Gates, promotes humanitarian ideals in a competitive atmosphere.
2. Social Democracy: If the Europeans can do it, why can’t we? Government intervention, social safety nets, higher taxes, universal health care, and regulation in trade.
