October 2008 - Posts

lets fact check some of the myths socialists create about the history of capitalism

many socialists i know point out that when america was capitalist during the early to mid 19th century and that during those times the workers were created like guano. Now workers were treated horribly during those times but capitalism is not to blame, many politicians and government officials admit to creating laws which made the government "help" the economy by intervention "bailouts, corporate welfare etc" and giving some buisnesses preference, this was called the commonwealth system (almost as same as the merchantilist system). The government helped aid manufactuing (at the exploitation of the workers) , they would make restrictions giving special companies monopolys on certain industries and had the philosophy that buisnesses are too big to fail (sound familiar). In fact during the election of Andrew Jackson it was actually poor people or workers that favored pure capitalism because it held large corporations accountable. Yet years later during Van Buren's presidency there was a depression, this was not capitalism's fault , before that the government had actually intervened to create a law called specie circular. This law made people pay of the payment of new government land by specie (gold or silver coins). This drained banks of specie which led to a panic later on. and even then the government (state governments) intervened by spending like a mad dog on canal,railroad,etc projects with bonds which made american bonds owned by foriegn countries decrease in price thus making the matter worse for the world (mostly europe)