Monday, July 18, 2011

Why do so many of us think a Free Market would inspire more capitalism, when a safety net inspires new venture?

If you're afraid that if your business fails you'll find yourself slaving at Wal Mart when you're 80, then you don't take the risk opening a Cafe, or factory, or clothing store in your home town. But, if you know there's a safety net there, then you feel the individual freedom necessary to take that risk. Therefore social democracy inspires more capitalism than Ayn Rand style free markets. This explains why it's an observable fact that Germany and England, with strong social safety nets, have more new capitalism than Somalia, a free market system.

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