Table Of Content

American Capitalism and the Changing Role of Government American Capitalism and the Changing Role of Government Harry G. Shaffer LibraryofCongressCataloging-in-PublicationData Shaffer,HarryG. Americancapitalismandthechangingroleofgovernment/HarryG. Shaffer. p. cm. Includesbibliographicalreferencesandindex. ISBN0–275–96578–3.—ISBN0–275–96658–5(pbk.:alk.paper) 1.UnitedStates—Economicpolicy—1993– 2.UnitedStates—Social policy—1993– 3.Capitalism—Moralandethicalaspects—United States. 4.Freeenterprise—Moralandethicalaspects—United States. I.Title. HC106.82.S5 1999 338.973—dc21 98–56638 BritishLibraryCataloguinginPublicationDataisavailable. Copyright(cid:1)1999byHarryG.Shaffer Allrightsreserved.Noportionofthisbookmaybe reproduced,byanyprocessortechnique,withoutthe expresswrittenconsentofthepublisher. LibraryofCongressCatalogCardNumber:98–56638 ISBN:0–275–96578–3 0–275–96658–5(pbk.) Firstpublishedin1999 PraegerPublishers,88PostRoadWest,Westport,CT06881 AnimprintofGreenwoodPublishingGroup,Inc. www.praeger.com PrintedintheUnitedStatesofAmerica TM Thepaperusedinthisbookcomplieswiththe PermanentPaperStandardissuedbytheNational InformationStandardsOrganization(Z39.48–1984). 10 9 8 7 6 5 4 3 2 1 To my life’s companion, my best friend, my wife, Betty; to my children, Bernie,Ron,Len,andTanya;tomywife’schildren,Rene´ andJamie;and to ourgrandchildren,Alex,Benjamin,Gabe,Jake,andNatalie.Maythey and their children and grandchildren question every conventional wisdom, no matter how loudly proclaimed, how often repeated, and how widely accepted, always with the public good first and foremostin their minds. Contents Acknowledgments ix Introduction xi 1. Capitalism: What It Is and What It Isn’t—Theory and Practice 1 2. Correct Economic Policy? What’s Good for the Goose Is Not Necessarily Good for the Gander 15 3. Boom and Bust: The Capitalist Experience 19 4. Distribution of Wealth and Income: Poverty Amidst Plenty 25 5. Inflation versus Unemployment: Which Is Worse? 31 6. Balancing the Budget: The Cure for Our Economic Ills? 41 7. Our National Debt: Are We Going Broke? 51 8. Social Security: Will It Be Here for Our Children? 57 9. Welfare: Which Way Now? 69 10. Health Care: A Social Responsibility or a Profitable Business? 81 11. Education: We Can’t Do Without It 101 12. The Environment: More Economic Growth or a More Livable Planet? A Delicate Balance 107 viii Contents 13. Taxation: The Price We Pay for Living in a Civilized Society 113 14. Conclusion: Are You Any Wiser Now That You’ve Read This Book? 123 For Further Reading 127 Index 133 Acknowledgments I want to take this opportunity to express my gratitude to those who were of such invaluable assistance inthepreparationsofthemanuscript for this book: U.S. physician and lung specialist Dr. William F. Porter; Health Service Administration Professor at the University of KansasDr. Michael H. Fox; and Canadian physicians Drs. Ann and Simon Carette, who contributed ever so much to the chapter on Health Care; low- incomehousingspecialistMarthaTaylor,whowasveryhelpfulwiththe chapters on Social Security and Welfare; and Dr. Beatrice Wright, who read several chapters and made many poignant suggestions. I owe special gratitude to those who took so much time from their workandpersonalobligationstogoovertheentiremanuscriptwordby word, sentence by sentence, and page by page and found numerous imperfections,fromspellingerrorsanddeficienciesingrammarandsen- tence structure to statements that needed clarification, and who made innumerable valuable suggestions for additions, alterations, and im- provements:economistsandspecialistsincomparativeeconomicandpo- litical systems Drs. Frank Durgin, Tom Karler, William Mandel, and the late Lynn Turgeon; and ‘‘intelligent non-economists’’ (for whom, after all, this book is written) Norma Lauring and my wife, Betty. Although I alone bear responsibility for the contents and for any remainingerrors and shortcomings, the bookcouldnothavebeenwhatitiswithouttheir help. Last, but certainly not least, I must express my gratitudetoDenny Brown who, busy as she was as administrative officer at the University of Kansas School of Journalism, always found time to type and retype, x Acknowledgments cheerfullyandpatiently,correctionaftercorrectionandversionafterver- sion of the manuscript, and in so many other ways played a major role in the preparation of the final draft. I don’t know what I would have done without her.