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Is time to take a 'Good close look at Capitalism' as it is practiced in most parts of the world?

The definition of Capitalism: 'An economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market.' A critical part of the definition of capitalism is the idea of laissez-faire, a French term which roughly translates into "allow to do" or "leave alone." This is what many so called 'Conservatives' around the world believe especially here in America. The less regulated.. businesses are, the more than can operate and stimulate business. At least this is the argument. But does it really make sense? If all us really take a step back into history and understand that through Capitalism, the common man invested in companies so that said companies could produce goods and or services that said investor needed in his or her community or state. As time progressed investments were soon made in many companies with the sole purpose of making money on the return from their investment. Now with 'speculators' and millions literally 'playing' the stock market, the whole concept of what Capitalism was meant to do has changed dramatically. Economist Thomas Sowell described it this way: "When an investment is made, whether to build a railroad or to open a new restaurant, the first money is spent hiring the people to do the work. Without that, nothing happens. Even when one person decides to operate a store or hamburger stand without employees, that person must first pay somebody to deliver the goods that are going to be sold. Money goes out first to pay expenses and then comes back as profits later—if at all. The high rate of failure of new businesses makes painfully clear that there is nothing inevitable about the money coming back." But who is investing in the small businesses of today?...no one! People don't invest in small businesses today for the sole purpose of said business to succeed. For the most part, people invest today to get rich. Moreover, individuals and corporations have violated the principles of fair trade, by concealing and falsifying information, and while their own personal freedom and wealth may be enhanced, both society and the free market they have conned are suffering. So I ask in all seriousness, do we all need to take a good close look at how we operate as Society, and if more and stiffer government regulations are not the answers....then what are? I would really like to some unbiased thought on this issue. The definition is very 'accurate'. I am sure you can simply Google this to find out. As i said, I would like serious thought into solutions and your thoughts.

Public Comments

1. it's all about the dollar with capitalism. but not to worry. the dollar is worth pennies now, and our economic health is flat lining. between special interests and politics gone awry, we're in a sad state. i'm open to suggestions, but i don't see this improving.
2. Your definition is inaccurate. It is important to recognise the difference between a capitalist who exploits the trading market in goods and services and one who speculates in land values. The activities of them are different and it is only the latter, the land monopolists whose actions are destructive. It is all too easy to write about what appears to be the real situation but without having an understandinging from a broarder perspective, it might appear that there is no difference between these two effects.
3. Yes, I agree that there is a big problem with the way the economy works now. And something needs to be changed. It doesn't make sense to continue as before, when things are clearly falling apart. But changing things just for the sake of change also doesn't make sense. The only kind of change that makes sense is where the root causes of the current problems are clearly identified and fixed. I think the root cause of the present crisis is too much diversification of investments. Vast majority of investors spread their investments over tens and in many cases hundreds of different companies. And for this reason they usually cannot watch closely the companies they own and change the management of these companies, when the management starts making bad decisions. A lot of managers and executives of failed companies came millionaires and billionaires out of this crisis. While the shareholders and the taxpayers are left holding the empty bag. And this kind of thing has to change. The owners of companies need to take more responsibility for the companies they own. And one way to encourage that would be to give tax breaks to investors who put most of their money into one or two companies instead of diversifying their investments. And tax a lot all those investors who diversify their investments a lot.