There is a big misconception in the United States and around the world that the Economy of the United States is free market capitalist. To believe that the United States has a free market economy is utterly naive and ignorant of economic facts. The interest rates are not a result of demand, supply, and risk but are artificial due to market interference by both the Federal Reserve and the US Government. Major companies are not successful due to their intelligent business practices but because of government contracts they receive, regulation they lobby for, government subsidies they receive, and bailouts that eliminate their risk while compensating for their losses. All these anti-free market variables are not new but have dictated American business for over a century.
The anti-free market economy is not the result of one party as both Republicans and Democrats have supported and continue to support legislation that attacks free market principles. Through big government incentives, regulations, subsidies, and bailouts, both parties have destroyed the free market and created an economic mess that rewards financial irresponsibility, creating an environment in which it is difficult for the responsible to compete.
Even the universally idolized conservative and pro-free market President Ronald Reagan implemented significant anti-free market policies. With his Executive Order 12631 President Reagan ensured that the US does not have a market system based on supply and demand but one that is heavily influenced by Government and the hidden agendae of those who are represented by the President’s Working Group on Financial Markets.
It is beyond obvious that the United States does not have a free market and that its economy is not capitalist. Whether “China Does Capitalism Better than America” was debated by Ian Bremmer, Minxin Pei, Orville Schell,a and Peter Schiff in New York during an Intelligent Squared debate hosted by Robert Rosenkranz and moderated by John Donvan.
