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By J. Marangos

Consistency and Viability of Capitalist financial structures develops an unique analytical framework to appreciate the connection among the industrial, political, and ideological constructions, the exterior setting, and the method of reform that supply upward thrust to convinced fiscal platforms through constructing consistency.

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Extra resources for Consistency and Viability of Capitalist Economic Systems

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Consistency and Viability of Economic Systems ● 13 An economic system can vary in any of the aforementioned dimensions, particularly in its structure, operation, and more importantly the adaptability to change through time. Societies need from time to time to restructure the internal relationships of their members. The economic system needs to be flexible and adapt to changes. Changes in the way societies are structured are necessary because the goals that members pursue cannot be taken as fixed.

However, market participants enjoying the benefits of the market process would question and undermine the power of authoritarian governments. Individuals who experience the benefits of freedom through market relations are likely to require the same in the political process. This is because the market and political pluralism are internally linked: one generates and sustains the other. Markets tend to create individuals with the personality characteristics of cognitive complexity, autonomy, sociocentricity, attitudes toward self, and identification with moral values.

The argument raised by Friedman and Lane that market relations are not sufficient for political pluralism no longer seems acceptable. In the short run political pluralism may be restricted in a market system, but in the long run, authoritarian political processes cannot survive alongside markets. Democracy is rising throughout the world. In Latin America, where dictators ruled many countries, there are now free elections. In Mexico, where one political party had ruled for almost 70 years, free elections have occurred and representatives of other political parties hold many government offices.

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