What is aModified free enterprise system?

Answer 1

There really isn't a single system. Developed countries go through cycles of growing government and free-market revolution. People are always told that the government interferences in the free market are just "adjustments", but these adjustments are really abuse of government force - politicians destroying value by forcing an outcome that is different than the natural equilibrium. These abuses grow and multiply, until people are receptive of the socialist system that has emerged. The decaying property rights causes a downward spiral in the economy, which eventually creates a rallying call back to free market economics. The economy booms, and the most productive become rich, and the abuse of government by both the rich and those seeking to loot their wealth rises again.

The United States is getting to the point in the cycle where people are becoming comfortable with the socialist system they are decending into. Europe's economies are bottoming out from the developed socialism, and some countries like Greece have elected libertarian government.

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