City Guide
Answers
Login
Home
/
Community
/
Forums
/ Post a Reply
Post a Reply
Thread: Has capitalism failed?
Title:
(100 characters at most)
Content: ( 3,000 characters at most, please )
You can add emoticons below to your post by clicking them.
[quote=DODGER,332177]Good investments lead to good returns, and the cycle perpetuates. Because of this general perception, Americans value the efficiency and effectiveness of market based capitalism over socialism. Americans' general philosophy is that individuals that run successful enterprises are more adept at using their money to grow the economy than government, which is often plagued by inefficiency and bureaucracy. Additionally, Americans trust markets more than governments because incompetently run businesses in a market economy fail quickly because of competition, and are replaced by more effective business models, while an incompetently run government bureaucracy will run until the entire system collapses as long as the politicians that sponsor the entity feel that keeping the entity in place will preserve their power base. One example of this sad fact is the U.S. public school system, which ranks abysmally low due to lack of innovation and motivation through competition, while our competitive and privately run university system is the envy of the civilized world. An even better example of government inefficiency is one that the entire world is now being hurt by: the U.S. Housing market. The community reinvestment act passed by congress in the 1970's was given an overhaul during the Clinton Administration, and backed by congress, banks were encouraged (read: "forced") to loan money to individuals with less-than-stellar credit. This system was corrupted by activist groups such as A.C.O.R.N., who would use the legislation as reason to organize protests and lawsuits against banks that refused to offer mortgages to people. This led to an unnatural rise in the price of housing (because of the availability of credit), which led to a massive surge in home production, essentially creating the "housing bubble" in the market. Normal market forces would have caught this problem before it began.[/quote]
characters left
Name:
Get a new code