If capitalism is a true free market economy and socialism is the transfer of wealth from the rich to the poor.
In a Socialist system, the means of production and distribution are collectively owned. In practice, this means a central authority decides how and where resources are allocated, and consequently, which of societies wants and needs are satisfied.
how would one call a current economy in the US
Some have labeled the US a corporatist state – meaning a system ruled by certain well-defined interest groups, or bodies (corpus). These various interest groups settle any problems through negotiation and joint agreement. The US made a decisive move towards corporatism during the great depression and decidedly away under Reagan. Italy, under Mussolini was a corporatist state, and interestingly, Hugh Johnson, who was an admirer of Mussolini, formulated much of Roosevelt’s original new deal.
Broadly, we can say corporatism is based on the premise that that man's nature can only be fulfilled within a political community, and it is the degree of perfection within the political system that allows individuals to fulfill themselves and find happiness. Most of the posts I see on SI reflect a de facto acknowledgement that a corporatist system is the ideal.
Right now in the US wealth is transfered from savers, retirees, renters, first time home buyers to banks (which pay below free market interest rates on deposits), the government and real estate speculators (only homeowners with at least 2 properties benefit).
How can banks pay below market rates for deposits? If true, then individuals will transfer money out of the bank into other accounts, until the bank rate goes up, or the value of the services rendered by the deposit account match the value of alternative higher interest accounts.
Further, savers and retirees invested in fixed rate assets, such as bonds (and to some extent real estate), had their wealth increase as the market interest rate dropped. As for first time homebuyers, it is difficult to make a case that they have been hurt by a lower cost of borrowing.
Inflation is a stealth tax that confiscates earnings and wealth primarily from the poor, middle class and retirees.
Tell that to G. William Miller and Jimmy Carter. |
