The way things are today, is their really a difference? Either way government is manipulating the system, supposedly to "improve" the economy. Doesn't look like it's working no matter who is pulling the strings and no matter on what shore you happen to wash up on. Capitalist, Socialist, Communist, they all have major economic problems. A central planned economy doesn't work. At least not the way our country is running the show. Gobble up bad debt? Print more money? What?
A prime example is today's headline of the US bolstering Greece's financial woes. I don't get it and I'll tell you why. Below I've translated how I see the situation in layman's terms.
A guy walks in to a bank and asks for a loan. His credit is so bad he's on the verge of bankruptcy. (This would be Greece). The guy has a long history with the bank and and up until his recent problems, was a very good customer, so the bank tells to the guy. "You get someone in good standing to co-sign for you and we'll see what we can do about giving you a loan."
So the guy comes back to the bank with his powerful friend (This would be the US). The friend says he will co-sign the loan. The bank checks out the friend and finds out that the friend (US) is in worse shape than the patron (Greece) who brought him into the bank. The friend (US) dresses well, speaks well, and knows all the right things to say about money and investments but his accounts are nearly empty and what little he funds has are leveraged up to his eyeballs.
The bank, being rational in this case, which is very rare. Throws them both out.
But as well all know in the real world, that is not what happened. Sorry to have digressed.