Pure capitalism pure capitalism sometimes goes by

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Pure Capitalism: Pure capitalism sometimes goes by names Laissez-Faire capitalism, anarcho-capitalism, or libertarianism. Adherents to the pure capitalism position are usually referred to as libertarians. Libertarians either see a very limited role or no role at all for government. It principally see government’s role as protecting property rights and enforcing contracts and also national defense. They argue that any government at all is too much government. They maintain that the free market is capable of providing roads, courts, police protection, and so forth. Arguing for Pure Capitalism: For most libertarians, many public problems are caused by too much government. As a solution to these problems, libertarians usually recommend less government and greater reliance on the forces of the free market. (1) Professional Licensing: Professional licensing reduces to supply of a service and increase its price. In a pure capitalist economy, professional licensing would not exist. (2) Minimum Wage Law: Minimum wage laws are restraint on free trade. Setting a minimum wage guarantee that individuals whose present skills are worth less than the minimum wage will go unemployed. Individuals have the (natural) right to work for whatever wage they voluntarily agree to, and government by passing a minimum wage law, prevents individuals from exercising this right in some instances. The minimum wage would not exist under pure capitalism. (3) The U.S. Postal Service: Private companies can and should be allowed to deliver first- class mail. Under pure capitalism, a number of competing mail services would deliver first-class mail, and such competition would drive prices down and quantity up. (4) Restraints on Price: All restraints on price, either price floors or price ceilings, reduce voluntary exchange to a level below that which would exist in a pure capitalist economy. Libertarians are against interest rate ceilings, minimum wages, agricultural price supports, and rent controls. (see page 498) (5) Discretionary Fiscal and Monetary policies: Government intervention in the economy, via fiscal policy and monetary policy, often has negative effects, such as high interest rates, inflation, recession, and high unemployment. The free market is inherently stable and capable of equilibrating at full employment output. 2
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(6) The Federal Reserve: The Fed should be eliminated. It is an “engine of inflation” far too political, and the cause of unnecessary and harmful ups and downs in the economy. In monetary policy, libertarians usually favor an automatic monetary mechanism as opposed to a discretionary one. This translates into a monetary rule or a gold standard. (7) Antitrust Policy: Government antitrust policy too often stifles market competition and is used to attack firms for no other reason than that they are big. Pure capitalism, which maximizes competitive forces, is the best antitrust policy. (8) Quotas and Tariffs: These increase prices and decrease exchange only serve narrow special- interest groups. Neither would exist in a pure capitalist society.
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