Economics and the U.S. presidential candidates

The Lexington columnist in this week’s Economist tries to analyze the two U.S. presidential candidates in terms of their understanding and support for “capitalism and the free-enterprise system”.

I feel uncomfortable with terms such as “capitalism and the free-enterprise system” because I think they are meaningless words used to hide from us the reality of how our economy works.

Our economic organization is one in which governments pass legislation and regulations which work to restrict competition. Subsidies, tariffs, licensing, copyright and patents all work to limit competition and thus to increase profits.

Romney has certainly benefited from this aspect of government activity and as president would support if not expand it. I don’t now how Obama became a part of the one percent but there is no indication he would not continue to support it.

It appears both men are equally strong supporters of our current economic system whatever name one attaches to it.

 

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