Five Gigantic Influences Of Free Market Capitalist Economy | free market capitalist economy

The free market capitalist economy provides an element of dynamism and change to an economy where changes are rarely effortless or painless, but when they do occur they will often be successful and timely. Many economists question the potential durability, not so much because the Chinese population is lazy, but rather because of the way the Chinese government has handled these recent economic problems, namely trying to force through economic policy measures in order to maintain the status quo of the economic system that China is built upon.

As many Chinese citizens have become unemployed and uneducated due to the downturn in the country's economy, and with inflation rising, the government has attempted to control the country's currency to help control the inflation and prevent it from spiraling out of control. One might think that such a measure would result in the Chinese government eventually becoming more efficient at running their country. Yet the Chinese government has done very little with its ability to control the currency and thus its ability to control inflation, which has led many Chinese citizens to believe that the “Chinese miracle” will be a bust, in spite of the fact that China still continues to build on its economic progress in the coming years.

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Many analysts say that the failure of the “Chinese miracle” is being driven by the fact that Chinese governments have not been able to control the flow of capital from abroad, especially with the fall of the property bubble that occurred in China and resulted in millions of Chinese citizens losing their jobs. There is little doubt that the property bubble in China resulted in large capital inflows for Chinese companies and banks, thereby enabling them to achieve incredible economic growth.

However, in the wake of the implosion of the Chinese real estate bubble, Chinese citizens are now feeling the pinch, and they are seeking to find companies and banks that are willing to lend money to Chinese corporations and banks. If the money lending institutions have made the mistake of expecting growth in the Chinese economy to continue at a pace where Chinese individuals can spend all their money, then they have created a problem for themselves. China has grown to become one of the largest economies in the world because it has been able to keep its economy on an even keel despite the fluctuations in its stock market and currency.

This is why it is important to have a strong free market capitalist economy, especially in the present situation that is affecting the United States, because the free market is the only place where businesses and consumers can survive and prosper, and grow at a comfortable rate. Therefore, if the free market fails to provide businesses with the necessary capital they need to keep the country afloat in a recession, the result is going to be unemployment and mass layoffs for businesses and employees.

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Indeed, the future for the free market capitalist economy in China looks bleak because it does not seem like the Chinese government is ready to give up the power to govern the economy, as evidenced by the recent attempts of the government to regulate the flow of capital into the country to help control the market. As the Chinese economy continues to falter, it is likely that the free market capitalism of the past will be replaced with a new authoritarian regime and possibly a centrally planned socialist economy.

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