Capitalism Does Not Equal Corporatism - Pt. 2

In Part-2 of “Capitalism” does not equal “Corporatism,” we delve into why bailouts support corporatism and how to fix the system.

(Read Part 1 Here – The Repeal Of Glass-Steagall & Stock Buybacks)

Capitalism Is Darwinian

Capitalism, if allowed to operate, is a “Darwinian System.” As with Darwin’s theory of evolution, corporate evolution has the same essential components as biological evolution: competition, adaptation, variation, overproduction, and speciation. In other words, as an economic system, companies either adapt, evolve, and survive or become extinct.

In 2008, the Government and Federal Reserve began a process of “bailing” out companies that should have been allowed to go “bankrupt.” Instead, a decision got made to stop “capitalism” from proceeding with its “Darwinian” process. It all began with the initial bailout of Bear Stearns.

Capitalism Equal Corporatism, #MacroView: Capitalism Does Not Equal Corporatism – Pt. 2

To date, the Federal Reserve, and the Government, have pumped more than $43 Trillion into the economy to keep it “afloat.”