The present recession was caused by investment errors through misuse of the profit motive that drives capitalism. Innovation has become the motivating force for economic growth. Competition among oligopolistic firms leads to large companies whose failures may trigger a recession and the need for government bailouts of failing companies, which then become government owned. The needed reform to preserve capitalism requires government control of these potentially failing entities. Such control however, could lead to the loss of freedom and fuels the conflict between conservatives and liberals. Legislation is needed to authorise government control of failing firms and engineer an improved economic system.
