Quinny wrote:Which would seem to indicate a mixed economy works best in todays capitalist system.
*cough*
I don't know if there's any "proof" of such a thing.
The only "proof" which exists, is that every country on this planet seems to have one foot firmly in place of capitalism while the other is on top of socialism. The only difference is that some countries lean more to one side then the other.
Roughly speaking there seems to be 3 types of economic systems practiced on this miserable planet. ALL systems are capitalistic but have government interference but for very different reasons.
ALL countries on this planet are capitalistic but NONE is free market.
1) American system - This is the closest thing to "TRUE aka Adam Smith" free market capitalism.
Whenever the government steps in, it justifies such action based on the "multiplier theory".
The belief that if gov. spends $1 on such a program it will generate $3 in economic benefits for society.
The space program, freeway interstate system, and gov. backing of home mortgages are good examples.
2) Asian system - For whatever damn reason the government will select a few lucky industries to become "national champions" and all sorts of subsidies will be lavished on such industries to make them grow.
Ship building in Asia is a good example.
South Korea is the poster child of this economic system.
3) European system - the closest thing to socialism.
France or Sweden are good examples.
There's a lot of gov. programs that are designed to blatantly take money from the rich or middle class and give it to the poor.
France has an infamous history of gov. intervention in the low income housing market.
If it was up to me I would prefer the "traditional" American economic system back in the days when George Washington and Thomas Jefferson was around.
That is what I would call "true" free market capitalism. No other nation has gotten closer to achieving that ideal then the USA.