Our contributor today muses: “Have we ever truly had free market capitalism?
“I have never experienced anything that wasn’t a big manipulation by the Fed, Wall Street and the government.
“Everything is fixed so we think we’re working to save for retirement but wind up losing everything because of targeted 2% inflation that makes our dollar worthless.
“By the time we retire, there is no way to safely make money, so we gamble and the algorithms are like betting against the house.
“We need to remove the criminals that are gaming the system so innocent people can survive.
“Is that even a possibility?”
The reader raises several good questions but we thought we’d take a look at the variation between capitalism and a free market system today.
Your Rundown for Friday, Oct. 18, 2019:
Just How Free?
Put plainly, a free market is based on supply and demand; it’s a transactional system between producer/seller and buyer. The key here is no outside regulation.
Capitalism, however, focuses on accumulating wealth along with owning the means of production; in this system, the government often makes the rules for “fair” trade.
To provide some context, the Heritage Foundation ranks the U.S. 12th amongst countries in terms of market freedom — the best ranking since 2011, by the way.
Two Asian powerhouses take first and second place, with Singapore coming in second and Hong Kong taking the top spot.
(The Heritage survey was compiled in May, around the time Hong Kong was really starting to agitate. It gives a clearer picture of what’s at stake should Beijing take a more hands-on approach with Hong Kong.)
Which system do you favor: Capitalism or free market?
Sound off — we’ll publish your opinions Monday.
Market Rundown for Fri. October 18, 2019
S&P 500 futures are down 7 points to 2,990.
Oil is going for $54.31 per barrel, up just 38 cents.
Gold’s shaved $3.80 off its price to $1,494.50 per ounce.
Bitcoin is down 2% to $7,960.45.
Have a great weekend. Check out Saturday’s issue… and we’ll touch base Monday.
For the Rundown,