Generally speaking, the United States was built upon an economic system that was modeled after the work of two English economists, Adam Smith and David Ricardo. Smith speculated that rational self interest driven by the profit motive would induce economic prosperity within a system that allowed for multiple participants sharing equal knowledge in real time. In other words, 'free markets' will work if the playing field is even, spread wide and comprised of individuals possessing a similar level of information regarding the products and services offered. Obviously, the early years of slavery were a complete aberration of the theory. Same with the gilded age in the 19th century and other periods of time that saw massive shifts of wealth due to monopolies and corruptive power factions driving economic policy. However, there are examples of the U.S. operating within the parameters of real free market theory and the results speak volumes. The most obvious example can be found during a 30 year period post WW2 through the 1970's-a stretch of time that represented the worlds greatest middle class.
What about today? Given the forty year rise of our corporate state and its concentrated method of accumulating, distributing and controlling liquidity (labor and price) we are nowhere near the free market system theorized and promoted within Smith's Magnus Opus, 'The Wealth of Nations'. If anything, it's operating at counter opposite or what I call an 'Inverted Soviet Model' (referring to USSR's economic system of late 20th century). Think I'm exaggerating? Just look at the residual-record wealth inequality with a majority of the country living pay check to pay check and no means of paying for unforeseen expenses. Not to mention the ridiculous levels of private and public debt. All within the richest nation in the history of the planet!
How about South America. Well, come on down and take a walk back in time. What you'll find is something on par with United States during the post war period. Walk down any street in any South American City and you'll find individual shops run by their owners-many with residences above. Outside those shops you'll find street vendors of all kinds selling everything and anything-all without regulatory burdens. Keep in mind, each person working on the street or within the confines of four walls is their own boss. No pyramidal structure of robotic order takers and receivers. No brands, hyper advertising or big box monopolies. Just hard working people practicing Adam Smith's theory as he intended. All individually sovereign within the system as a whole. It's lively, human, interactive and self supporting.
In the end, an economic system built on greed and avarice is doomed to failure given the tendencies of psychopathic participants who see no boundaries nor limits of self restraint. Unfortunately, this is what's happened to a perfectly good theory that proved its value during specific periods of our economic history.
“If someone can prove me wrong and show me my mistake in any thought or action, I shall gladly change. I seek the truth, which never harmed anyone: the harm is to persist in one's own self-deception and ignorance.”
Marcus Aurelius
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