‘Saving Capitalism from the Capitalists’

Katalin Botos
DSc, University Professor, University of Szeged, Pázmány Péter Catholic University

Published in: Public Finance Quarterly 2012/1 (p. 140-147.)

Summary: The capitalist economic order, which involves the allocation of resources driven by the profit motive, is the most efficient of economic orders. However, it will not work without advanced finances. Insider corporations have no interest in the creation of a modern and flexible financial system, as that would also provide opportunities for others. Left to its own devices, the market is not efficient enough and needs government regulation. This is not without risk either, as insider corporations often keep governments in their service and suppress the market. Therefore, in order to leverage the advantages of capitalism the right course between the Scylla of weak government regulation and the Charybdis of an underdeveloped market needs to be steered. The Hungarian lesson: we should not take a path which even the USA is forced to abandon.

Keywords: capitalist economic, government support

Journal of Economic Literature (JEL) kód: G18, G1, G2

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