Socialization of Losses — A crisis of capitalism

Pick a side and stay on it

There is nothing inherently wrong with socialism. It is okay to have a humanist and social approach to issues in life, including economic issues. It is okay for a central planner to direct resources for the greater good. It is okay to help out the biggest businesses (and the smallest businesses as well) in order to see them through a rough patch.

The Free Markets are not working well, are they?

This explains the need for occasional intervention by central planners in the form of central banks and central government treasurers. If the free markets were working so well, there would be no need for intervention.

Capitalism is Dead, It's all Lemon Socialism Now

Can we agree that the global system we have is not real capitalism anymore? Under Lemon Socialism, private companies keep ‘dem’ profits whilst losses are carried by the taxpayers. Profits are privatized and losses are socialized. Lemons here refer to weak and failing firms.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store