(07-12-2014 06:12 PM)Old Dominion Wrote: I don't see it quite as simply as that. My thinking is the exact opposite. Unbridled capitalism, because of its own self-destructive nature, invites socialist responses to "save" the country from the excess of capitalism.
But unbridled capitalism has never existed. Friedman's point, with which I agree, is that the so-called excesses of unbridled capitalism in fact require substantial government intervention in order to exist.
Quote:I believe Friedman makes an allowance for governmental intervention in extreme situations, in order to correct for excess. The problem, as someone else stated, comes from the tendency for government to stay involved, long after its original mission has been accomplished.Civil rights may be an example of this in the social arena and I'm sure there are many examples on the business side.
This is one problem and we obviously agree on that. The other problem is the tendency of government to stay involved and throw ever more money at a problem even after it becomes obvious that the government solution is not the proper one. See War on Drugs for an example. The bottom line is that once you give a government bureaucrat some power and a budget, his sole concern becomes to grow that power and that budget. The real tragedy that I see is that what used to be representative government, accountable to the people, has largely become government by bureaucratic fiat, imposed by nameless, faceless, and unaccountable operatives. A classic example is the "if you like your doctor ... if you like your health insurance ..." controversy. The law as written probably allows that, and that's what Obama can claim to be talking about. But it doesn't specify that directly, and it also authorizes HHS to write regulations to implement it. And it's those HHS regulations, not the law itself, that screwed the pooch on that one. Now do Obama, Pelosi, Reid, et al, get a bye because they had no way of knowing that's what would happen? I don't think so. I think they knew exactly how it would play out--they've been in Washington too long, even Obama, not to. It was just very convenient to write a law that left that point open, and claim ignorance when HSS wrote the regs. That's why I have a hard time with the left's argument that we control the government. No, we don't.
As Ronald Reagan said, "The closest we will come to everlasting life in this world is a federal agency." That needs very badly to change.
Quote:But I digress here. Are subsidies and "pork" just a couple of socialist interventions that benefit the wealthy? If so, isn't it safe to say socialist interventions dealing with social issues are hated, wheras socialist interventions dealing with aiding industry and the wealthy are praised?
Technically, subsidies and pork are probably more fascist than socialist. The socialist model is government ownership of means of production, the fascist model is private ownership with heavy government intervention.
I'm not quite sure where you are getting the idea behind your hated/praised question. I think the tendency is to say that the right would look at it the way that you describe, and maybe that's what you are getting at. But I see it differently. I think we have a governing class that sees all interventions as good because they increase the power of government. They are perfectly happy to have a republican administration trample civil liberties with a "patriot" act, followed by a democrat administration that vastly increases regulation of (and therefore power over) health care and the financial sector. And we have a governed class (the rest of us) that has so far gone along with these things because it truly believed the rhetoric that they were for our own good.
I'll tell you whose good it's for. The top three counties in the US in household income (Loudon and Fairfax, VA, and Howard, MD), 5 of the top 6 (add Arlington and Stafford, VA), and 7 of the top 12 (add Montgomery, MD, and Prince William, VA) are in the DC metro area. That's an astounding transfer of wealth from the rest of us to the ruling class. And the wealth transfer is dwarfed by the accompanying power transfer. What's more, as long as Virginia remains one of the few true swing states, with a relatively large number of electoral votes, nobody is going to take that on.
Quote:So yes, to answer your question, I believe we've had a mixed economy for some time. Neither capitalism or socialism are immune from mistakes. Why would either be? There is no perfect system and any decent economist will tell you economics is largely theoretical, prone to falling under the influence of far to many unknowable variables.
Well, then, if we've had a mixed economy for some time, then doesn't it follow that the problems that we see and attribute to the excesses of capitalism are in fact attributable to the failings of a mixed economy?
And to finish the thought, doesn't it therefore follow that those imperfections in the science of economics mean that a managed economy is unlikely to do better, and in fact almost certain to do worse, than one where government interference is minimized? Doesn't it make sense that the "invisible hand" can do a better job that some bureaucrat with a computer printout? Isn't the force of that "invisible hand" always going to be there, and isn't it more powerful than human hands, so that we are going to have to deal with it sooner or later anyhow, and isn't putting it off until later merely ensuring that the bust will be bigger when it comes?
Neither Friedman nor I would support anarchy. His model, which I posted on another thread, has a robust government that performs meaningful tasks.