Free Market Capitalism in The United States

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The US has been leading the world economy with its model of free-market capitalism for last three decades. We have been told that, if left alone, markets will produce the most efficient and effective outcome. Because individuals know what the best way is and they are the ones who will be rewarded according to their productivity. Therefore, maximized freedom and minimized state intervention have been regarded as the most beautiful contribution to economic development. However, not all neo-liberal countries have achieved the expected outcome, in fact, most of them resulted in big failures. The growth rates of Latin America and Africa, which had been higher than other developing nations, dropped by over 60 percent after they embraced IMF-sponsored neo-liberalism in the 1980's . Especially in Latin America, neo-liberal policies were applied in the time. The result was that Latin America's per capita GDP fell by an average 0.5 percent a year for 10 years. Meanwhile, the growth rate of countries that state deeply intervenes its economy such as Northern Europe countries, China, Brazil and Singapore have enormously increased. Especially China's historic success along with the strong recent economic performance of Russia and several Persian Gulf states has renewed interest in the hybrid economic model. Those phenomena can’t be explained by free-market capitalism ideology.

RESEARCH QUESTION: Is the neo-liberal economy model the best for the national economy as a

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