Writing in 2010, Nobel Laureate in Economics, Edmund Phelps (on page 411 of the attached article) described the textbook capitalism of the 1911 Schumpeter and the 1930s Hayek as an opening-up process. In so doing, he discussed the role textbook capitalism plays in allowing “economic dynamism” to thrive and argued this is one of the most significant benefits of a “free enterprise” economic system.
However, once the government and management of markets evolve due to politically-based demands, the structure tends to become more corporatist by design and, hence, in response. Corporatist structures vary in nature but they generally include the following popular types: Continental, Absolutist, Bureaucratic-Authoritarian, Social-Democratic, Populist, Communitarian, Progressive, New Deal, Justice Party, Solidarist, Fascist, State, National, Liberal, Neo, Chinese, and Shariah Compliant corporatism.
Begin by defining dynamism (according to Phelps, not from one of the many definitions floating out there on the Internet), and then indicate how is it related to the market-based models we are studying. Next, define corporatism. Based on your definition, do you believe the US is becoming more corporatist? Finally, discuss whether you believe our current system facilitates and stimulates our economys dynamism as much as it did in the past. Please provide empirical evidence and examples to explain your thoughts.
