Restrictions v. Laissez- faire (America) Tuesday, Feb 23 2010 

America operates and has operated under a modified free-enterprise economy since our country was established. The term “Laissez-faire” comes from the French for  “let it be” or “leave it alone”, in reference to state intervention in industry. The modification of the “free-enterprise”  refers to state issued restrictions on trade, which obviously contradicts the Laissez-faire principals. Recently, with the current economic recession, the amount of freedom alloted to domestic enterprises has been drawn into question. Many Americans believe the lax in banking regulation and irresponsible capitalism were the largest contributors to the current economic crisis. Very few, if any, politicians believe America should practice Laissez-faire capitalism. The single issue that most directly indicates where ones lies on the fiscal spectrum from Republican to Democratic; the amount of state regulation the government should apply to US industry.

Those arguing for less regulation beleive that regualtion “raises the cost of doing business and reduces job growth” and that increasing tariffs, ” A tax imposed on a product when it is imported into a country”, “reduces the variety of consumer goods while limiting the potential markets of exporters.”

While those in favor of increased government regulation of the finical sector argue, “deregulation, specifically of the financial sector, that has brought us to this denouement. Better regulation would have prevented the housing bubble and its subsequent collapse.” They also believe, “Banks would not be sitting on unknown amounts of bad loans had regulators been empowered to control their activities. Unwitting borrowers would not have been enticed to purchase homes beyond their means absent unscrupulous real estate agents and mortgage brokers.”

http://www.investorwords.com/4877/tariff.html

http://economics.about.com/od/beyondeconomics/a/review.htm

http://www.realclearmarkets.com/articles/2008/09/the_choice_capitalism_or_regul.html

The Fundamental Concept of the Individual Wednesday, Feb 17 2010 

The first form of “capitalism” developed along trade routes in the Middle East and in Rome. This form of Capitalism is often refereed to as Mercantilism: buying or making a good and selling  it at a price that yields a profit. “Capitalism as a way of thinking is fundamentally individualistic…the individual is the center of capitalist endeavor…that society is composed of individuals who pursue their own interests, that individuals should be free to pursue their own interests (this, in capitalism, is called “economic freedom”  This Concept of individual incentive has proved successful historically in american culture. The Belief define capitalism states “individuals pursuing their own interests will guarantee the interests of society as a whole.”   Economic Historian, Richard Hooker points out the materialism that a capitalist culture depends on, “In non-capitalist societies, such as tribal societies, people have real social relations to the producers of the goods they consume. But when people no longer have social relations with others who make the objects they consume, that means that the only relation they have is with the object itself. So part of capitalism as a way of thinking is that people become “consumers,” that is, they define themselves by the objects they purchase rather than the objects they produce.” Its certainly evident we live in a culture focused on the individual, a Materialistic culture, a capitalistic culture, the question is, ” is there a better alternative?”

http://www.wsu.edu/~dee/GLOSSARY/CAPITAL.HTM

The Case for Capitalism Friday, Feb 12 2010 

In the closing of my senior year at PHS I intend to research and present, “The Case for Capitalism.” Capitalism has been under attack recently from sources from Micheal Moore to the film Avatar. Both Michael Moore and the folks behind Avatar have made out like bandits with the funds accrued from their jabs at American capitalism. I am very interested in the economics of the free market and plan to major in Marketing Management. I intend to find answers to the questions concerning the economic system in which our country operates, and present them in an intelligent manner.

What is Capitalism Tuesday, Feb 9 2010 

From an Economic standpoint capitalism is,

“An economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market.” (Source: Dictionary.com) From a social standpoint capitalsim is defined as,  “A social system based on the principle of individual rights.”(Source: Capitalism.org) Capitalism is both social and ecoconimic and without the social definition of capitalism a country cannot successfully practice the economic definition of capitalism. Capitalism can only exist with individual property rights. Under a capitalistic economy price is derived from supply and demand. A good costs whatever a seller and a buyer agree upon. This is contrary to communist and socialist systems where the government can determine the pricing of goods or services. A capitalistic economy defends the rights of the individual, making it different than any other economic system. Capitalism is not only an economic system but a moral system. “Capitalism should be defended vigorously on a moral basis, not an economic or utilitarian basis.”

http://www.importanceofphilosophy.com/Politics_Capitalism.html