I am under no delusions that we live in a purely capitalist country, and haven't since the Federal Reserve was established by thieves and those who would destroy the concept of constitutional law.
The problem with our country today can be traced directly to government intervention.
The housing problem for instance can be traced to layer after layer of government interference with the natural ebb and flow of the market. First it was the New Deal Subsidies under the Roosevelt administration. then it became veterans loans, then it was the FHA, then the HUD and then it was a layer of tax incentives for taking credit against your income tax for mortgage interest payments, then it became ARM's and the Community Reinvestment Act.
It's like picking at a scab. It never works to fix the problem. It just delays it, and adds another layer of government subsidy and beaurocracy, and taxes for said personell and subsidies.
Then there's Social Security. The idiocy they are trying right now of "stimulus payments" would be completely moot, if you just gave everybody back all the money they paid into the Social Security system, that has been sucking money out of the economy for decades. You add ten percent per annum compounded annually over the life of their payments. Anyone over 55 would be allowed to stay on the program ,(or not if they want) and it would be taken from the general fund if a deficit in the fund arose. Everyone under 55 would be out of the system, and allowed to set up a tax free retirement account with the money. Talk about establishing a new level of savings in this country. Where do you think all our money went in the first place? This would recapitalize the banks, and everything would return to normalcy.
GET RID OF HOUSING SUBSIDIES. Nobody would need them anymore anyway.Then you put a $15.00 a barrel tax on all IMPORTED oil, and use the money to start a Rural Solarization Project. This would eliminate the line losses from long distance transmission lines. It would have a secondary effect of eliminating the need for importation of more oil. Not to mention making localities more independent in case of national emergency. Part of the program would establish a mortgage refinancing program for people who agreed to rooftop solar voltaics, and electric cars added to their mortgage, further reducing the need for imported oil. This would have a net effect of eliminating the number one problem with our trade deficit: OIL. It would make our own marginal oil fields proffitable to operate because of the importation tax.
Now as for the problem with classical socialist theory. It never takes human nature into account. People are greedy by nature. It can't be bred out. If you tried it you would wind up with a bunch of impotent nothings that wouldn't breed. Greed is a function of human sexuality. Thag gets Ooma a pretty bead necklace with the furs he skinned from the foxes he hunted down. I can't explain it any better than that. If you don't get it then you don't have a single ounce of alpha male in you.
There can NEVER be real socialism. Beacuse of human nature. It always breaks down into a corrupt form, run by the most distasteful elements of society, using well meaning people to bring themselves to power. It will always be thus. This is the great genius of capitalism. It harnesses greed for the greater good, instead of leaving it to find a niche for the assertion of personal power in a certain to be established heirarchy of the elite.
Socialism destroys humanism. Do you believe in evolution? Humans are involved in a new form of evolution. It still involves the survival of the fittest. Socialism retards evolution. It essentialy steals drive from the human condition and replaces it with dependency.