America appears to be moving away from a free-market economy and is becoming more regulated, according to an ASU professor, dean and two students.
Robert Mittelstaedt, dean of the W.P. Carey School of Business, serves on the boards of directors of three public companies.
He said the current economic problems are part of a natural cycle and because the United States hasn’t learned from past experiences.
“One of the problems is that the government has mixed objectives,” Mittelstaedt said.
He added that the government is trying to mix social and economic objectives.
Mittelstaedt also said he is not a fan of regulation and that generally the government regulates in the wrong places.
“The problem is that the government didn’t adequately regulate lending money,” he said.
Mittelstaedt said he has a major issue with the auto industry bailouts.
“If you are not price competitive, you will never survive manufacturing cars,” he said.
He said he is also against universal health care for cost reasons.
“Any system without rationing becomes cost excessive,” Mittelstaedt said.
William Boyes, an economics professor who has been at ASU for around 35 years, has similar feelings.
“The U.S. economy has been far from a free-market economy for many years,” Boyes said in an e-mail. “But even so, we are moving more in the direction of a government-run economy than ever before.”
He said he thinks the economy is in a serious recession and headed for a depression.
“The so-called stimulus plan has been like [Franklin Delano Roosevelt]’s programs in the 1930s, more a detriment than a help,” Boyes said. “FDR extended the recession into a depression and Obama seems to be doing the same.”
He said that the government is way too regulatory and should have a limited role.
“We are so beyond that it is ridiculous,” Boyes said.
He said some ways to improve the economic situation would be to reduce government, cut spending, shut down agencies, cut taxes and cut services.
“In essence, get government out of what it does and back to doing what it should,” Boyes said.
On universal health care, Boyes said he believes it will lead to rationing, not lead away from it.
“It is a way to lose control of your own life. It is a way to reduce health care quality. In short, it will be a disaster,” he said.
Doug Souza, a recent economics graduate, said he agrees that in some ways America is moving away from a free-market economy and that there is too much government regulation in the economy.
“I think a perfect example was the bailouts,” Souza said. “Since they don’t have to deal with risks, they’re going to take unnecessary risks.”
He is more positive when it comes to universal health care.
“I’m all for a limited health insurance for people who cannot potentially afford it,” Souza said.
Benjamin Morin, an economics junior, said he believes there is too much government regulation.
“The growth rate of the United States economy averages between 1.5 times and twice that of European countries,” Morin said. “Economists have attributed this to less regulation in the United States.”
He added that there is one major problem with the current health care.
“The government does not tax workers on the health care packages provided to them by their employers, even though such packages are a form of compensation,” Morin said.
Reach the reporter at reweaver@asu.edu
