I. Introduction The political events of the late 1980's and the early 1990's taken place in Eastern Europe, the Soviet Union, and Nicaragua certainly represent the predicament, if not the collapse, of the communist economic system. Indeed, the centrally planned solution of attacking the basic economic problems of what, how, and for what seems to be never before as doubtful as it is now. Although the free market solution of the capitalist economy seems to progress smoothly in economic matters as far as the aggregate production is concerned, on the political and social front and with respect to the distribution of income, these economies are not as trouble‐free as they appear on the surface. The bloody poll tax revolt and the IRA attacks in England, the racial unrest in South Africa, and the drug and oil wars fought by the US are but a few examples of the troubles in the basically capitalist systems. Less obvious but surely problematic are the subtle trade wars among them, especially between the US and Japan, the hungry and homeless, and the mounting budget deficit of the US economy.
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