If you haven’t heard yet, the stock market just crashed, dropping over 1000 points before rebounding (somewhat). Everyone is freaking out, as is the usual case with the stock market.
Everyone is blaming China’s stock market woes, but that’s simply the straw that broke the camel’s back. The real, underlying reason for this crash is rumblings from the Federal Reserve that they might increase interest rates in September (or March?).
Just wait until everyone starts blaming this recent crash, and any forthcoming ones, on “capitalism.”
- Interest rates are set by the government. (Under capitalism, they would be set by the free market.)
- Monetary policy is set by the government. (Under capitalism, you’d have a free market in currency, with many currency options.)
- All these trillions of dollars in money printing is done by the government. (Would never have happened under capitalism.)
- Wages for all these stock market corporations are set by the government, via minimum wage laws. (Under capitalism, wages are set by the free market).
- Many of these stock market companies are kept afloat by government corporate welfare and government bailouts and government lobbying. (There would be zero corporate welfare under true capitalism.)
- Through quantitative easing, the government has given the banks 3.5 trillion dollars to keep them in business since 2008. (Under capitalism, these banks would have gone out of businesses and their CEOs would be on the streets begging for food, where they belong.) (And yes, I realize the Fed is technically private, but you know what I mean; it’s a government-endorsed system that the government allows, follows, enforces, and loves.)
The recent crash, and any near future ones, will be caused by big government, not capitalism.This is corporatism, not capitalism. The US isn’t a capitalist country. (I wish it was.)
Remember that when everyone starts blaming “capitalism” for all this, which they almost certainly will.