Question

How can you reconcile Reich's dim view of the effects of corporate capitalism in the United States today with the more "upbeat" tribute to the free market that Gilder offers? Specifically, use Bloom's taxonomy: Analyze and evaluate Reich's explanation of why the current version of the "free market" in the United States is exacerbating social and economic inequality, and analyze and evaluate whether Gilder's view is more accurate and complete.

Answer 1

How can you reconcile Reich's dim view of the effects of corporate capitalism in the United States today with the more "upbeat" tribute to the free market that Gilder offers? Specifically,
Use Bloom's taxonomy: Analyze and evaluate Reich's explanation of why the current version of the "free market" in the United States is exacerbating social and economic inequality,
And analyze and evaluate whether Gilder's view is more accurate and complete.

Reich's understanding of corporate capitalism under ‘Saving Capitalism’ excerpt relies more on common sense and economic history than economic theory. Reich denies the disagreement between government interventionists and "free market" defenders as a "meaningless debate."

As per Reich Corporate Capitalism is a system, amendable that changes with time, Markets are systems and are artificial. Reich adds that there are always rules and regulations in a market and the government's economic policies do not "interfere on the free market, and constitutes the free market - without them there is no market. While as Gilder interprets the Capitalism as an Information and Learning System under ‘Wealth and Poverty’, one of the most influential economics compositions. Gilder affirms the moral superiority of free-market capitalism and explains why supply-side economics is more effective at decreasing poverty than government-regulated markets.
Adding to the concept of Free Market, it was suggested that social and economic inequality gets promoted in term of Income inequality increases when a country is more open to free trade or free market. Free Market encourages exports of high-quality goods and services, thereby promoting employment among highly skilled people, increased imports of goods made possible by free trade. As a result, free trade causes upward pressure on wages of highly educated people and downward pressure on those of low-skilled people, which also increases income inequality. However, as put forward correctly by Gilder, It’s Free Markets that promotes Inequality, Not Capitalism Or Socialism as suggested by Reich.