If you have paid attention to the news or radio lately, you most likely heard the term socialism a lot over the last couple of weeks. You may be wondering what socialism has got to do with America. My understanding is that people are concerned with the recent intervention by the US government seen by many as socialist measures.
The US government is planning to buy up large stakes in major banks across America. In the traditional American economic system, that was unthinkable. Yet, the economy has gotten so bad that the government has no choice but to take drastic measures.
In socialism, the ruling regime takes ownerships of core capital infrastructure of the economy. The banking system is vital to the economy and can be regarded as economic infrastructure. If the US government takes over major financial institutions, would it be the end of American capitalism? Apparently, the US economy is already disintegrating.
In fact, many economy professors would happily tell you that the American economic system is not perfect capitalism, but indeed a hybrid system of capitalism and socialism. In the current crisis, it may seem that the US economy is shifting toward socialism.
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