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Not understanding the economy means nothing will change

A lot of discussions have been carried out lately about the state of the economy. And while doing so, I am appalled by the lack of good understanding of the actual meaning of three terms that I commonly encountered. Here are my descriptions of three commonly misunderstood terms:

1) Capitalism: An economic system where everyone has a fair chance in obtaining capital and making good use of it. Under such system, young people have relatively easy access to economic participation. It is important to note that fair chance is not equivalent to equal chance; and easy access to economic participation does not mean fancy starting salary.

2) Neo-feudalism: An economic system where capital is concentrated in the hands of a few, while the remaining people have little or no chance in obtaining capital and making good use of it. Under such system, young people have extreme difficulty in gaining economic participation.

3) Democracy: A social system that can only exists along with a capitalistic system since economic freedom forms a pillar for freedom of expression and inalienable rights.

According to my definitions, most modern economies in the world are either neo-feudalistic, or are in the fast track of becoming neo-feudalistic, instead of capitalistic. This is due to the unholy union between corporations and governments, who are supposed to maintain a fair bargain between labor and productivity owners. Maintaining fair bargain means that governments should not be taking sides. Here is one example out of many things that governments shouldn't be doing:

Promoting education recklessly by using tax payer money to fund student loans. While governments talk about how education can increase employability and salaries, it is actually educational institutions and corporations that benefit. More student loans mean more profits for educational institutions, but more graduates mean higher competitiveness to employment, hence lower employability, and lower salaries (less cost of hiring for corporations). The invisible hand of economics has worked again. Whatever the students have, is either a massive waste of money, or simply a massive debt. And a lot of wasted effort too.

There are more examples of governments strong arming the free market that is supposed to benefit the people but ended up benefitting the corporations. Can you think of any?

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.