Liberal Democrat

Liberal Democrat
Liberal Democracy

Thursday, February 21, 2013

Foreign Affairs: Economy: Jerry Z. Muller: Capitalism and Inequality: Balancing Liberal Economics With Social Insurance: Part 1

Capitalism and Inequality: Inequality is rising across the post-industrial capitalist world. The problem is not caused by politics and politics will never be able to eliminate it. But simply ignoring it could generate a populist backlash. Governments must accept that today as ever, inequality and insecurity are the inevitable results of market operations. Their challenge is to find ways of shielding citizens from capitalism's adverse consequences -- even as they preserve the dynamism that produces capitalism's vast economic and cultural benefits in the first place.


Part 1
How do you create and economic system where the people are free to reach their full potential and accomplish their dreams. And live a long successful life not dependent on others or government in order for them to make ends meet. But also have a system where people for whatever reasons fall down and for a period of time aren't able to take care of themselves. And don't have that same freedom to be able to take care of themselves. How do you create a system that rewards and promotes success and opportunity but also empowers people who don't have those things. To yes be able to take care of themselves in the short term but forward looking are able to get themselves the same freedom that the rest of the country. Has and are able to take care of themselves and be successful in life. This has been the dominant question that America has struggled to answer and deal with since the 1930s and perhaps even longer. Then that and the answer to that question at least from my point of view gets to what the role of government in America is. And what should it be doing for the people.

I don't like terms like income inequality or the income gap and not because I think its okay that we have people in this country. That have a lot and in some cases so much and don't know what they should do with all of that money and know they'll never spend all of it. On one side of the economy and on the other side we have people that barely have anything and are worried if they are going to be homeless at. The end of the month or how are they going to be able to feed both themselves and their families that week. I don't have a problem with people who have so much wealth that they aren't sure what to do with it. As long as they've made that money by being very productive and successful which leads to good jobs for other. Americans and haven't made that wealth for themselves by basically screwing others. Its not just good that I'm successful but how do I ruin the competition so I don't have any of it to compete. With people who become wealthy, that I have a big problem with.

The main problem I have in this discussion is that America currently has an economic system. That leaves roughly 1/5 Americans out of having the same economic freedom that 4/5 Americans have in. This country that we have a Capitalist economy that works for 4/5 Americans, well 80% generally speaking thats pretty good right. But when the rest of the developed world has a system that works for roughly 90% of the country give or take. And we have this huge diverse country with a surplus of all of the natural resources in the World that any developed country could dream of having. In a 16T$ economy, thats a big problem because it means our competition meaning the rest of the developed world. Is doing very well with less when it comes to their economic system as far as people have access to economic freedom . And we on the other hand aren't doing very well with more where a small percentage of the country collects most of the rewards.

The reason why I don't like the terms income inequality or the income gap. Is successful people have done the things in life to make them successful whereas people in poverty for whatever the reasons. Have not and sometimes that gets to lack of opportunity but other times it gets to people not taking advantage of the available opportunities at their disposal. So of course we are going to have successful people with a lot and lets say unsuccessful people or people who are currently unsuccessful. With barely anything in life, so to have a ladder lets say with a few people at the top and a lot more people at the. Bottom is not income inequality, the people at the top are just enjoying the rewards that comes with economic success. While the people at the bottom are trying to deal with the consequences of having a lack of opportunity or not finishing school or making mistakes early in life.

The economic problem with America at least as it relates to our economic system. Is not that we have too much economic freedom and that we aren't Socialist enough with a big enough Federal Government. The problem is we don't have enough economic freedom for too many people which is the next and current challenge. For American Capitalism, how to create an economic system where more Americans can enjoy economic freedom. That makes us more competitive with the rest of the developed world, as well as emerging world powers. And that gets to having a better public education system, better job training and making work pay more then not working in this country and in part 2 I'll layout how I believe those things can be accomplished.