A comment on capitalism

[Libsmasher]

Every time something bad happens in the economy (invariably by government meddling) one hears the idiot chorus that capitalism doesn't work.

It works fine. It punishes irrational behavior. This is valuable because it discourages irrational behavior from being repeated. People who make bad investments, bad loans, or borrow money they can't repay are mishandling society's scarce capital. Capitalism efficiently removes that capital from them as a result.

- Did you take out a house loan you couldn't repay, and got foreclosed on? Hmm guess you won't do THAT again, right?

- Did your auto company lag behind the curve and get caught making cars nobody wants? You snooze, you lose.

- Did you invest in risky securitized subprime mortgages, with the stock now worth nothing? What were you thinking, idiot?

 

[MVPMARTY]

First post here. I am an independent, open-minded conservative (yes, there is such a thing).

While I'm a pro capitalism individual, I recognize there are disadvantages to pure capitalism, some of which we are witnessing now. However, I would rather take my gamble in a capitalistic society with minor government intervention rather than take my chances with socialism.

That said, these bailouts need to get under control. First banks, now the automobile industry. . . what's next? The airlines and than builders and contractors after them? There has to be a fine line.

 

[Libsmasher]

First post here. I am an independent, open-minded conservative (yes, there is such a thing).

While I'm a pro capitalism individual, I recognize there are disadvantages to pure capitalism, some of which we are witnessing now. However, I would rather take my gamble in a capitalistic society with minor government intervention rather than take my chances with socialism.

That said, these bailouts need to get under control. First banks, now the automobile industry. . . what's next? The airlines and than builders and contractors after them? There has to be a fine line.

I use the term "capitalism" loosely to identify american economics, but economists would call it a "mixed economy". The problems have all been the government meddling in the "mix", and I'm interested in your list of disadvantages. Other than it doesn't save fools from themselves, I can't think of any.