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Capitalism was intended to occur within a free marketing paradigm, as Adam Smith compared the advantages in contrast to a limited free market with government regulation and authority such as existed in the imperial England of his day. Today the World Trade Organization and a plethora of other governmental and meta-governmental agencies regulate the 'free' market. The advantage to corporations that develop within such a global context precludes a dynamic free market, instead a dynamic global corporatism has become established unifying with recrudescent synthetic accretions of evolving state socialism.

Monetary policy and federal regulation of the right to issue money are extra inhibitors to a free market. In the United States today a tremendous degree of the gross national wealth is controlled by 1% of the people who make their living with capital gains instead of actual work. More than 25% of the U.S. economy is tied up in the financial services sector instead of actual material production or even personal services of a non-financial kind. The concentrated wealth and capital gains businesses displace a healthy economy too far in historical situations of the decline and fall of nations that were financially successful. The free market becomes choked off by the weeds of money traders and stock manipulators such that work becomes laughable and workers become cheap drones gotten rid of to save corporate cash when cheaper international production facilities present.

A free market was never intended to replace democratic government. Adam Smith in error assumed that people were smart enough to realize that buy and selling goods is different than the business of running a national government and pursuing national self-interest. Today Americans are trained to believe they are better off if they become impoverished, pay higher fuel prices and neglect investing in their own leading technological innovations to create profit and improve the standard of living because there is an 'invisible hand' out there running their government and looking after their economic interests when there isn't. The dynamic of the invisible had to allocate resources most efficient can only occur within a rational paradigm of a democratic government seeking its own advantage and not that of China or India. The hospitalization of production and allocation of resources of a man made kind can follow within a competent democratic nation and within international comparative advantage circumstances

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