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Unformatted text preview: is is no. We were once
a pure market system, but we discovered that pure
capitalism had some inherent weaknesses at the
• In pure capitalism, the role of government is
diminished to that of protecting private property,
maintaining a market environment, and providing
national defense. Although our government
continues to perform these functions, we have
also evolved to the point at which our government
performs many other functions, too.
• We will discuss these additional functions in much
greater detail at a later point. The greatest
amount of change in this regard in our own
economic system coincided with the Great
Depression. Keep this in mind for a future
discussion soon to come. A number of essential elements of the market system
need to be mentioned as we attempt to comprehend
how such a system is efficient. The first of these is
technology. Market economies are quick to integrate
technology because gains in this area equate to
increases in productivity. A simple defi...
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- Spring '09