What is it?
Definition Economic and social system characterized by free markets, private property, and individualism
Who cares? Good Civics- our system Interrelated to numerous debate topics- they economy, social issues, international relations
Types Types- state based (mixed, and crony), laissez faire
People Thinkers- Adam Smith The Austrian School of Economics Ayn Rand Think tanks- Cato, Ludwig Von Mises Institute, Mercatus Institute, Independent Institute, Future of freedom foundation etc. What do Political Parties have to say?
The Role of the Economist Normative vs. descriptive Large debate in the literature Determines nature of interventions
Good Peter C
Bad
Nature of the Argument Maybe not overall problematic- but mixed economy necessary Distinct from central planning as the norm Different ways to suggest the unfettered system is flawed
Central Planning We have individuals like this…..
Ethics Patriarchy- who are the bread winners? Racism- socio-economic divide Calculation- nature of individual views and means to and end of production Social Services- Welfare Xenophobia- scapegoating immigrations Worker exploitation- sweat shops Individualism means classes and social groups don’t have rights
Poverty Rich and poor cap- strive for greatness- developing countries exposed to globalization Good for who- the corporation or the individual? Socio economic conditions can be precursor to terrorism- reaction to asymmetric nature of hegemonic capitalism Distribution of wealth- The rich must live more simply so that the poor may simply live. Corporations create shanty towns- displace local populations, overcrowd labor markets, low wages
War International imperialism in the name of liberalism and for resources such as oil Military industrial complex- war is a racket System demand global security apparatus Global rise of the rest- hegemonic conflict
Health Care Obama Care attempts to address market failures- pre- exiting conditions, insurance, limited youth involvement Globalization- disease spread- bi pharma limits access to poor countries Think of incentive of hospitals- preforms many surgery's, use and buy expensive machines, decisions are not always medical
Growth Infinite? 08 recession- lack of regulation Boom and Bust cycles- creative destruction
Environment No regulation for biz practices- having the only goal of productivity Industrial Agriculture
Alternatives Dedev More regulated society Socialism New system? System Sustainability
Thinkers Mixed Economy- Keynes, Paul Krugman Marxism- Karl Marx