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Friday, March 16, 2012

The Delince of American Manufacturing is due to the great myth

American Capitalism today was become the object of political debate but its meaning, history, and nature has been lost, co-opted, and distorted by both sides of the debate. Capitalism came from the marketplaces of democratic societies, not from philosophers, political parties or economic professors at universities. It, like democracy itself, is of the people. It is at the heart of our history of our nation and it has its share of the good, the bad, and the ugly just like the people of this nation. Our theoretical debates on capitalism are at the very root of our indecision and lack of progress. To understand capitalism requires an objective look at its history. Some of these premises of capitalism have been made truth by both the left and right in recent decades must be overcome. The FREE Trade myth seems accepted by all!If you can’t get by the fact that American capitalism is not interchangeable with tariff free trade like many on the right, you will not understand capitalism. In fact, the greatest years of American capitalism came under decades of protectionism. Similarly on the left, you must realize immigration of cheap labor not only reduces local wages, but impedes innovation. And yes we need regulation, but the real question is what kind and how much. Capitalism has been defined by freedom and bound by the regulation of its abuses just as our society itself. Is wealth distribution the real source of unrest with Americans? History shows Americans tolerate inequality in wealth distribution as long as class mobility is high and the playing field level. Inequality of wealth distribution is the very much the touch mark of all human society, but what made America different was class mobility and opportunity with a foundation of free education. Is government inefficient in the market place? Not always, the national road, Erie Canal, our railroad system, Panama Canal, Hoover Dam, and space program tell a different story. What we need to understand is the history of these successful government programs, so we can emulate them.