Why do liberals and conservatives fail to recognize the difference between Capitalism and Mercantilism?
This is an absolutely critical difference for understanding economics.
Capitalism is a system where individuals are free to engage in mutually beneficial trades with others. It is the economic system that develops in the absence of governmental intervention in the economy.
Mercantilism is the system of special privilege which Adam Smith and all genuine Capitalists since have condemned. Examples of Mercantilism include the Federal Reserve, the IMF, the World Bank, corporate welfare, tariffs, bailouts of failed businesses, the Military-Industrial Complex and other government intervention for the benefit of wealthy politically-connected interests. Mercantilism, which is the status quo in most of the countries in the world today (with the exception of the socialist countries, such as Cuba and North Korea, where the people live in extreme poverty), could probably be described most accurate as Socialism for the Rich (or Corporate Socialism).
Why do the liberals and conservatives constantly conflate these 2 economic systems which have next-to-nothing in common as being the same system even though they have very little in common?
Because, in the nineteenth century, "the capitalist system" was another word for "the mercantile system," and had nothing to do with free markets. Many supporters of free markets identified themselves as socialists – Warren, Proudhon, Greene, Tucker, Lum. Others did not – Bastiat – but didn’t identify as capitalist either.
Most liberals and conservatives equivocate between older and newer definitions.
oh please, most americans can’t even count their own spare change
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PotAto PotAAto…They both fail to serve all sectors of society
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because of abject SELFISHNESS!!!
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Because the marxist education establishment and the large corporations running the media have a vested interest in the simple false narrative.
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Because, in the nineteenth century, "the capitalist system" was another word for "the mercantile system," and had nothing to do with free markets. Many supporters of free markets identified themselves as socialists – Warren, Proudhon, Greene, Tucker, Lum. Others did not – Bastiat – but didn’t identify as capitalist either.
Most liberals and conservatives equivocate between older and newer definitions.
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