funeralxempire wrote:
The problem is that while they're not 'mainstream' in the sense you're thinking, they're mainstream in that they're highly influential and trusted to the point that quite a number of people think that regurgitating their ideological preferences is the same as being informed about economics; and that should worry anyone who sees through their shtick because their influence is a significant factor in why so many struggle today.
/runon
Part of the problem is that the people who peddle these ideologies are able to present themselves as credible and authoritative and they pass their guano on to others who accept it as reasonable, and when that happens the end result seems to be a lot of people convinced that their bad idea is the only way forward. Ironically a lot of the criticisms end up being the same
that's an ideological utopia that will only work on paper they often label other positions with.
That's right, capitalism is a system that largely works on paper but functionally needs substantial reforms to even be viable, as demonstrated by the entire period since Adam Smith first described it. It has never been implemented in any pure, large-scale form and generally speaking attempts at doing so are doomed to break down the closer they get.
All 'capitalist' economies in practice are mixed economies, just like most self-proclaimed socialist economies. Just like the economies that came before them, prior to those terms being defined.
It's interesting that you give Smith as the person who first described capitalism, and then state that true capitalism has never been tried. Now I happen to agree that true capitalism has never been tried, but I suspect I have a very different idea of what constitutes "true capitalism" to you!
Smith was not an anarcho-capitalist, or a libertarian, or an Objectivist, or an Austrian. He didn't advocate for the abolition of the state or anything like that. Smith wrote about the benefits of the divison of labour and free trade, as well as how individuals each acting in their own self interest can unintentionally work for the public good, but he also wrote about the harms of business collusion to fix prices, and the undue influence of money upon politics. Indeed, his concern about the influence of money upon politics feeds into his belief in the invisible hand. Smith believed that government should not favour one business over another - his arguments in favour of the free market were arguments against cronyism.
Very few significant capitalists believe that the government should have no role in society or the economy, or even just a role limited to law enforcement. Smith is one bogeyman for people on the left, others are Milton Friedman and Friedrich Hayek - both of whom thought government should actively redistribute wealth. Friedman and Hayek are both Nobel Prize winners, which gives an idea for the regard they are held in. If you want to find a Nobel Prize winner who was a minarchist, you'd have Leonid Hurwicz... who won for contributions to game theory. Murray Rothbard and Ludwig von Mises? Nope, not awarded.
True capitalism depends upon truly
free markets, where decisions are made in rational self-interest. Not out of desperation, not out of coercion, not because you've been misled, not because there's no good choice. It requires a government that will correct market failures around information assymetry, externalities, public goods, and non-competitive markets. Not all capitalists will go as far as I will, but I think my position is much more consistent with Smith (who shouldn't necessarily be held up as a model of anything -we've learned a lot since he died) than Rothbard is.