Adam Smith's idea was that a society of competitive, profit-seeking, private-property-owning, free individuals can assure the provisioning of society through a self-regulating market mechanism that accumulates capital, productivity and wealth. He was right. In the seven generations since 1820, that idea has multiplied the human population by six times, the incomes of the developing countries by 5.4 times and the incomes of the developed countries by 19 times. Chavez thinks this astonishing success story is a dismal failure. To correct it, he wants to return to monopoly capitalism of the 18th century colonialists. For competition by free individuals, he substitutes monopoly by the state. For the self-regulating market mechanism, he substitutes a dictatorship of prices, wages, exchange rates and corrupt state enterprises. For private property he substitutes state property via expropriation, confiscation, taxation or regulation, and a "right to use" state property but not own it Comments?
2006-06-29
13:42:35
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3 answers
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asked by
Armerys
3
in
Other - Politics & Government