The government has stakes in major financial institutions, is about to provide financing to the auto industry, and some speculate there may be a nationalization of the industry.  Where is American Capitalism headed? 

For example..

One stipulation the auto industry faces with the bailout is the appointment of a “Car Czar”.  Whoever is appointed to the position has the ability to determine the manufactures continue to maintain “a product mix and cost structure that is competitive in the United States market.” (House.gov)

A product mix and cost structure?  Does this not sound like the person who is the “Car Czar” has the ability to determine what cars should be sold in the US marketplace, and does it not sound like they have the ability to influence the price?

The whole point of a free market economy is that goods and services are traded/sold  for a price that is determined by both parties (buyers and sellers).  When price setting take place  we can no longer say we are truly a free market economy, it resembles the economic environment of China.  Sorry, it really does.

Let’s face it, a true free market economy has not existed for a long time in the United States, if ever.  What we see now, due to the recession, is the illusion giving way to reality.

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