Free Market Economics: Problems and Solutions
Free Market Economics: Problems and Solutions Rick Olson September 13, 2018, revised June 29, 2019 The private enterprise/free market/capitalism model of economies has been highly successful. Not only is it perceived to be optimal in theory, but the performance of the U.S. and European countries vs. USSR and Communist China (before some loosening up) should be convincing. The surge in China began with some relaxing of private ownership/incentives in agriculture and allowing locally owned enterprises to flourish. Even President Obama has said, ". . . it is important to remember that capitalism has been the greatest driver of prosperity and opportunity the world has ever known." "The Way Ahead", October 8, 2016, https://www.economist.com/briefing/2016/10/08/the-way-ahead Free market economic theory, also known as capitalism is based on a set of assumptions: i.e.: · capital assets are owned · prices are the signals that a...