Look it up. It's what the Reps believe in. It's not free enterprise, although its concept is grounded in free enterprise. In fact, capitalism would have limited government enterference in business. That includes regulating.
2007-05-16 05:20:14 · 19 answers · asked by Handy man 5 in Politics & Government ➔ Politics
an economic system based on the private ownership of the means of production and distribution of goods, characterized by a free competitive market and motivation by profit, sorry I'm an economics major.
2007-05-16 05:25:57 · answer #1 · answered by Sir Hard & Thick 3 · 0⤊ 0⤋
look more carefully - capitalism in it's pure form is called objectivism and was created by fiction writer ayn rand.
in a purely capitalistic economy, there would never be things like lobbyists, as they would draw capital away from the needed r&d that companies do.
no one would ever protect any industry - when someone comes up with a better way, it would be adopted (see the movie about who killed the electric car or read up on what the concrete lobby has done to stymie advances in highway construction).
my guess is that cars would not be getting just slightly better mileage than they were 40 years ago.
when a company like chrysler fails, they would be allowed to fail and not be bailed out by the government - the same thing goes for the savings and loans and the airlines and any other corporation that currently gets some preferential treatment from the govt.
in a truly capitalistic economy there would never ever be no-bid contracts, corruption or cronyism - because all of those things are inefficient.
this is not the kind of economy we have...
2007-05-16 05:26:05 · answer #2 · answered by nostradamus02012 7 · 0⤊ 0⤋
Capitalism requires private ownership of means of production. It also requires competition. If there is competition among both buyers and sellers, the system will consistently deliver the best quality product at the best price. However, the system automatically degenerates into monopolism as larger operations buy out or force out smaller ones. Also, costs are sometimes cut by degrading quality or shipping jobs overseas so no one in the home country has any money to buy the product. So capitalism does need some regulation.
It shouldn't be surprising, really. A nuclear reactor needs control, a car needs control, application of medicine requires control, and capitalism does too. You do not want operators cutting costs by dumping poisons into rivers or into the air, or by substituting cat meat or rat meat for pork or beef in food products. You do not want bankers to be free to fly off to Brazil with the depositors' money. Its just common sense.
2007-05-16 05:27:10 · answer #3 · answered by jxt299 7 · 0⤊ 0⤋
The concept of capitalism has limited analytic value, given the great variety of historical cases over which it is applied, varying in time, geography, politics and culture. Some economists have specified a variety of different types of capitalism, depending on specifics of concentration of economic power and wealth, and methods of capital accumulation. During the last century capitalism has been contrasted with centrally planned economies. Most developed countries are usually regarded as capitalist, but some are also often called mixed economies due to government ownership and regulation of production, trade, commerce, taxation, money-supply, and physical infrastructure.
2007-05-16 05:24:44 · answer #4 · answered by Brite Tiger 6 · 0⤊ 0⤋
Well heres what Webster thinks, I dont see the government influence, or regulating, or the word Neo-Con anywhere here!!!
Economic system characterized by the following: private property ownership exists; individuals and companies are allowed to compete for their own economic gain; and free market forces determine the prices of goods and services. Such a system is based on the premise of separating the state and business activities. Capitalists believe that markets are efficient and should thus function without interference, and the role of the state is to regulate and protect.
2007-05-16 05:26:00 · answer #5 · answered by this_takes_awhile 3 · 0⤊ 0⤋
Yes because regulations are necessary to correct market failures, like when externalities are created by the manufacturing process but not paid for in the cost of the good. This is the reason for a gas tax among other things.
I'm not sure what you mean by Reps? Both Dems and Reps have been supportive of capitalism.
2007-05-16 05:23:58 · answer #6 · answered by tabby90 5 · 0⤊ 0⤋
Capitalism means that the primary criterion for any social relationship is based on Trade as opposed to coercion.
Laissez-faire Capitalism is unregulated, or, regulated by natural market forces with a separation of state and economics for the same reason as the separation of state and church.
2007-05-16 05:26:06 · answer #7 · answered by Mr. Wizard 4 · 0⤊ 0⤋
Capitalism will never be 100% pure in a representative Democratic Republic.
2007-05-16 05:29:47 · answer #8 · answered by only p 6 · 0⤊ 0⤋
Capitalism means that all means of production are in the hands of private individuals as opposed to Communism which had state owned means of production.
2007-05-16 05:23:59 · answer #9 · answered by Jim P 2 · 0⤊ 0⤋
It means that individuals and corporations set their own prices and compete in a free market. And yes, there are regulations because there has to be.
2007-05-16 06:18:48 · answer #10 · answered by Truth B. Told ITS THE ECONOMY STUPID 6 · 0⤊ 0⤋