There are errors in Capitalism "ersatz"

"The current economic difficulties are not temporary or cyclical as usual. Simply put, the economic model that generates a boom during the period of the 1980s to 2008 has collapsed. The scale of the economic boom can be seen from how the system was no longer functioning in developed countries. I say, the 2008-2009 financial crisis was the result of the crisis of capitalism. "
Thus saying George Magnus, senior adviser at UBS, the giant Swiss bank, was quoted in Time magazine's September 30 issue of 2011. "Our economic model that sustains and rules do not produce sustainable growth."
That is one of the topics that emerged post-economic crisis in the United States in 2008, followed by the Greek crisis from 2009 that widened to euro zone crisis. Actually, many efforts were made to overcome the crisis in the U.S. and Europe, but it still does not seem optimism for economic recovery.
The crisis was followed again by the shocking news. For the first time the U.S. has decreased debt rating from AAA to AA by Standard & Poor's. This followed a similar decline for the French, a sign of economic strength of countries already weakened capitalism's headquarters in the long run.
Meanwhile, Asia with China in the leading position in the economy continue to thrive, even a pillar of the world economy. Asia is too big not even affected by the crisis the U.S. and Europe. Asia strongly with the availability of large reserves.
This situation led to a lawsuit on the validity of the capitalist system and raises the issue that the Chinese state capitalism as the motor is considered to be a model of future economic development. It is also a topic raised in the World Economic Forum (World Economic Forum) in Davos, Switzerland, last January.
What caliber economists said about this debate?
Capitalism used to describe the economic system and the capital owned by a private transaction, not the state. Capital owners decide for themselves the best use of capital. Private, not the state, utilizing ideas. Visionary entrepreneurs and innovative thinking that continues to grow thanks to co-direct the economy.
Success means the use of capital and profit, on the contrary, failure means the loss.
The corporation develops only if the products bought by consumers and corporations disappeared from circulation if the opposite happens.
That's the terminology that is used capitalism Edmund S Phelps, Nobel Economics laureate and professor of economics at Columbia University (New York), and Saifedean Ammous, an assistant professor at the Lebanese American University. Terminology that they wrote in the site Project Syndicate, January 31, 2012.
Phelps and Ammous reminiscent, in fact a phenomenon that occurs in China is similar to corporatism in Germany under Otto von Bismarck (chancellor from 1871 to 1890 period). Many things are deployed state and individual interests under the national economic interest.
Reminded, corporatism, or the determination of programs and economic direction of the country do not as beautiful on the surface. Many resources are wasted and a lot of calculation is wrong. The economic value of resources lost in vain not only not less, but also enormous.
The same thing is said to Joseph E Stiglitz, Nobel Laureate of Economics in 2001, in an interview with CNBC television station January 19, 2010 edition. Stiglitz said, remains the mainstay of the market mechanism.
Ersatz capitalism
So what's wrong? U.S., says Stiglitz, is actually not have a system of capitalism in its true sense. In the U.S., capitalism does not run properly and that arises is ersatz capitalism. This is the nickname for the capitalist system with poor quality.
Stiglitz is one of emphasis negligence rule in Western economies during the last 30 years in the U.S. known as "a small state". The state did not need much to set the economy. This option is launched from the Ronald Reagan (U.S. President from 1980 to 1988 period) and gave birth to "the kingdom of Wall Street", deciding even the White House dictation.
Then came the phenomenon of fraud in the financial sector are known as sub-prime mortgage crisis, the existence of derivative products with any amount of risk.
Supplementing it, Stiglitz gave an example. In the last 30 years even the phenomenon of financial corporate managers who do wrong and harm can come out of the company to receive large bonuses without getting penalized. "In the old capitalism of the 19th century, if I, for example, has a firm and do wrong, I must bear the consequences," said Stiglitz.
He reminded, the capitalist system survive, but the system of capitalism without rules. That's a wreck. Stiglitz shows empirical evidence, for 50 years after a major crisis in the U.S., various regulations are made. During that period of crisis are hardly noticeable.
In contrast, in the last 30 years, there were 100 times of financial crisis in the midst of deregulation. The series of deregulation in the financial sector is booming.
Even worse, the country also helped to lie on a pile of debt outstanding, exceeding 60 percent of gross domestic product. Budget discipline that limits the maximum amount of a budget deficit of 3 percent of gross domestic product also ignored the headquarters of capitalism countries.
There is a rejection of the regulation on the grounds that inhibit innovation. Stiglitz cited former Federal Reserve governor Paul Volcker. "It's hard to find evidence that innovations in the financial sector has increased the productivity of the economy. Instead, the creation of risky financial products has made the financial industry to increase the risk. "
Kenneth Rogoff, professor of economics and public policy at Harvard University and former senior economist at the IMF, also wrote in a Project Syndicate February 1, 2012 edition. He cautions, how rules and corporate nil too wild, and even lie has been a lot happening in the economy is running now.