View Single Post
  #1 (permalink)  
Old 05-14-2005, 01:43 PM
thedreamer's Avatar
thedreamer thedreamer is offline
Commentator
 
Join Date: Apr 2004
Location: Republic of Ireland
Posts: 865
ireland european union
thedreamer is on a distinguished road
Credits: 5,664
Default Capitalism. Which Type do you prefer?

Now since we’ve had our Communist brethren rattling on about the evils of capitalism I like to ask this question, to what type of trade system would you be inclined. Now I’ve based these on the actual (rather than the theory) reactions in markets in the world and tried as best I can to give understandable examples.

Trans-National Model
This form of capitalism involves minimal levels of government regulation and a minimal taxation environment. One of the results of this is that ultimate source of authority in the market is the trans-national bodies involved.
Such as the WTO, IMF, large scale multinational corporations (such as McDonalds, Wal-Mart, etc.). This been due to the market generally been highly concentrated in the hands of a small number of competitors due to mergers and benefits of concentration. This is a market where capital and people are highly mobile, though ideas are highly regulated among competitors. In many ways this the model the US is heading towards, under such deals as NAFTA and FTAA.

National Model
This is very similar to the trans-national model in that there is a concentration towards large businesses, but there is bias in the regulatory and tax system that favours national producers over foreign registered. This system by and large isn’t very regulated (beyond the border entry point that is) and has easy movement of capital and people within the nation. This would be where the US currently would be in my view. Mexico, Italy would also be examples I think.

Local Business Model
This type of capitalism would be dominated by a large number of small regional businesses. Its what would be described as the nation of small shopkeepers.
Now this tends to have a large government regulatory environment and taxation system that favours small business against the economies of scale it would be competing against. The US economy from the 50’s-80’s would an example of this. Today France would be an example in trying to maintain local businesses against market forces.

Semi-State Model
This type of model has a relatively high level of government activity in the market, even going so far as to the government having a large shareholding in companies. This market is highly regulated, but highly privatised with national businesses predominating and capital movement been hard to move outside the national market.
Germany would be an example of this type of capitalism.

Welfare Statist Model
This market is highly regulated and heavily taxed with a lot of power residing in the government. Sweden, Finland would be examples of this type of capitalism. Capital movement is highly restricted and tax spending invested heavily in social programs.

Centrally Planned
This market while privatised is directed by a combination of public and private planning. Japan is a prime example of this type of capitalism, in that while the market is highly privatised the regulations and tax system are designed to have cooperation on a national level against foreign competitors.
__________________
"Better to die on you feet than live on your knees" - Emilio Zapata
Reply With Quote
Sponsored Links
Red Cross - Donate Today    Save the Rainforest