Before answering this question, I would like to direct you to the arguments made by Tom Dunnington in his article about: “ A Case for Capitalism: More Freedom, More Prosperity” published on December 21, 2010 in his web entitled:
Although the Adam Smith and Milton Friedman theories about free market capitalism against John Maynard Keynes theory about the right of government to interfere is an ever lasting arguments between economists around the globe, the question still tickling my curiosity of whether there is pure capitalism or pure Keynesian valid in the advance economies today.
My argument is; I strongly believe that there should be a combination of Adam Smith/Milton Friedman theories and John Maynard Keynes theory in some circumstances, as today, government intervention is necessary to cope with current global economic situation. Even for Republican party, I am sure during Bush administration he also would interfere with the case of financial institutions like Lehman brothers etc. So no pure market liberalism or capitalism could fit with any particular country neither Keynes theory as well.
Interestingly, the author of “ A Case for Capitalism: More Freedom, More Prosperity” Tom Dunnington has firmly believe that Capitalism is the only answer to revive the US economic turbulence today as I fully quoted to his arguments as the following:
“Neneng. I have to disagree with you on two points. One, I'm not a Republican, even though I do tend to lean in that direction, I am not registered with that party and consider myself a Libertarian. If the Democrats believed in smaller government, limited spending , reducing the debt and tax burden, and remained within the bounds dictated by the Constitution I would be for them. Yes, it's true that Bush raised the debt during his presidency and many others before him did as well, but America is very close to the breaking point. Personally, I believe Lehman Bros. should have been allowed to collapse, along with GM, AIG and everyone else. Bailing them out did not force them to fix the problems that brought them to that point. In fact, they are beginning to repeat them. From the ashes of those broken companies, new and better businesses would have been built. Companies that would have learned from the mistakes of the past. Second, I don't believe that true free-market capitalism has been tried on a global scale. I don't think that it will be either. As governments grow bigger, they demand more and more control and input into society. The growth of the nanny state is inevitable, look at Europe. The countries there are forced to cut the "benefits" that they have been bribing the people with and they go nuts. Greeks are rioting in the streets, along with Italians and the French. They expect to be taken care of and they are not willing, or at this point able, to take care of themselves. And now the countries are broke. America has always been the bastion of economic growth and innovation. People didn't flock here from all over the world because we handed out better benefits. They came here because of the opportunity that America offered. The opportunity to chase your own dreams and punch your own ticket. It has, unfortunately, been lost. Americans are turning into Europeans. Don't want to work and take the risk, they want to be taken care of. The immigrants still understand and see what we have taken for granted. We need to get back to our roots and become that shining beacon to the world again. We can't do it with an over-reaching, bloated, and intrusive government.
Thanks again! I look forward to spirited debate, and I will admit, I am still learning.”
I really respect his brilliant respond though deep in my heart I still believe that mix economy that is open market with government intervention in some circumvention would still be an appropriate answer to cope with the economic crisis either in Europe or the U S today.
Like Tom Dunnington, I wish our readers could respond and share their esteemed knowledge to these arguments.
You can leave the answer here or directly to Tom's link, the author of “ A Case for Capitalism: More Freedom, More Prosperity”. Thank you.
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