Capitalism, which I studied in my undergrade courses, is not...

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Capitalism, which I studied in my undergrade courses, is not the best form of economic structure because it narrows the scope for the rest of a population.

It controls the economic system from up to bottom.

The money ends up being centralized and people end up in poverty.

It is the most corrupt method of economic structure because it allows corporations to divert funds and insulate them from paying their fare share of taxes necessary to develop infrastructure.

Case in point, the debacle of the real estate market.

In a nut shell, they rotated loans amongst themselves to reign in money amongst themselves while leaving the average person to remain in perpetual poverty.

In order words, they lured investors to invest in the mortgage industry (Europe and Latin America), they get into the revolving of debt, by discounting the loans to different banks while still showing the original value of the asset on the liability side and when it is time to reconcile the balance sheet, assets and liabilites are not equal.

Meanwhile, they end up with billions or trillions of dollars traded among themselves, an over inflated prices of real assets that have been reduced in value through their discounting schemes.

There is no regulations to curtail such corruption from happening.

The government paid for those assets in order to keep the banks and investment firms solvent, yet the borrower is still stranded with an over inflated asset that they have to simply, if they're lucky have the price of the asset reduced by the bank or carry out a shortsell, by selling the asset for a lower price than the outstanding principal, and the banks were paid by the government for the actual outstanding principal.

Capitalism allows money to stay suspended for an indefinite time and precludes it from trickling down to the people.

Money has its limitation, if a group of people hordes the money then the money will only remain in the hands of a few and the rest of the population will end up in poverty.

Rose L, February 28 2011, 8:36 PM

Topic: The Capitalism as an Economic System Is One of The Best Ones

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