Why is Capitalism failing in the USA?

[brucec83]

Capitalism failed and we abandoned it during the late 19th, early 20th century. Now the word is just used as a talking point.

Consider that Capitalism can be defined as an economic system in which 1) the means of production are privately owned and controlled for private profit; 2) all decisions regarding production are made by owners in the free market; and 3) profit is distributed and control exercised by owners in proportion to their investment.

Want proof. In 1840 we abolished indentured servitude. In 1868 we abolished slavery. In 1869 we mandated an eight hour day. In 1890 we agreed that the government could break up companies which promoted restraint of trade. In 1890 we enacted a corporate income tax. In 1934 we abolished child labor, agreed workers could unionize, be paid for injuries, securities and exchange, fair labor standards etc. etc.

I submit that as the government is entitled to a 35% share of the profits of every business, it is not completely privately owned, but 65% privately owned. It is operated for profit, with the proviso that it must be operated in accordance with the above and numerous other laws and regulations. Finally, much of the profit is distributed to the government and many CEOs who are paid enormous bonuses based on profitability, not to owners.

So what we have is neither capitalism nor socialism, but a Mixed Free Market Social Democracy.