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If the USA is a capitalist economy, why is its Government allowed to impose a trade embargo on Cuba?
Maybe my interpretation of capitalism is a little skewed, but I was always led to believe that a capitalist based economic model prohibits government intervention in the economy; yet, the US government does now allow any US businesses to trade with Cuba. The embargo even goes as far as to prohibit any US citizen spending money in Cuba. I assumed that it was the prerogative of the private market of whom they will and will not do business with.
Like I say, maybe my interpretation of capitalism is wrong, but I am interested in what people think.
Thanks in advance.
@tony, I wasn't asking why the US imposed the embargo, I know why it was imposed. I was asking whether or not it undermines capitalistic principles.
4 Answers
- 8 years agoFavorite Answer
Short answer, becuese there really is no such things as true "Capitalism", the United States calls preaches "free-market capitalism", but the Government intervenes in the Economy all the times, like imposing a Federal Minimum wage or Bailing out Banks to the tune of Trillions, in Reality a purely Capitalist economy would fall apart in a very short time, and economy cannot exist without Government intervention.
- ?Lv 78 years ago
The USA has not been capitalistic for over 100 years. Nor has any other other in the world, only Hong Kong under the British and Singapore were largely capitalistic; and the people in those mere city states are and were among the richest in the world, as were the British when they were the bastion of capiltalism.
