As an economic system, Capitalism depends on the distribution of goods and services to generate private capital and profit. Therefore, the concept of profit regulates financial life and social structure. The opposite of capitalism is communism. In communism and socialism the economy is planned by the government and therefore it becomes the ONLY investor. Then, distribution of goods depends on principles of equality or "need." The Communist credo is "From each according to his ability and to each according to his need." Capitalism is based on free market, free trade and free initiative and Government's control is minimal. Rightfully so since in Politics, economic "reason" does not always prevail.
This may be especially true now. The best-case scenario for most countries with over-heated economies is a short recession. Nature (natural law) itself demonstrates the natural law of growth and decay. Someone once said "trees do not grow in to the sky." But now governments are "injecting" their own capital (and attending subsequent control) into what may be a natural and needed function of free markets to correct and regenerate. Much like forest fires as a needed process for fresh re-forestation.
However, if the bail-out plans are administered well, taxpayers could profit from government's investment in to banks. Presuming regulators learn from this crisis, the will manage finance better in the future. If the worst is avoided, a return of state and private sector that is normal in free market democracies will hopefully return. Capitalism as a system is now being tested and maybe questioned by some. However, those who believe in it must fight for it. For all its flaws, it is the best economic system man has invented yet.
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