Misconceptions About Capitalism, Part I

Due to the relatively positive reception to my articles regarding "Misconceptions about Communism," I thought it might be helpful to look into some of the misconceptions that still exist about capitalism. Now, that's not to say that these are misconceptions held by economists or experts in economics - but rather, some of the more generalized and common misconceptions held by the public. I've encountered many of these even amongst graduate students whom I have discussed the topic with, and I thought it would be interesting (and hopefully informational) to try and dispel some of these myths. As always I appreciate any feedback left in the comments-section underneath and would be more than happy to address any issues brought up there.

Misconception Number 1: "The free market brings better goods at lower prices."

This misconception is both complex and often times based on circumstantial evidence. It is true that in the latter half of the 19^th and early half of the 20^th centuries, where capitalism was considered highly unregulated compared to today, many new consumer products were launched onto the market - sometimes even faster and of higher quality than those produced in socialist states. However, how much of this can be attributed to the free-market itself is where the misconception occurs. Even more, this misconception leads to another one - that any and all regulation of the market is thus inherently bad.