It's a complete myth - created by Socialist professors no doubt - that free-market economies have large inequalities compared with other economies.
You are aware probably of the 'Nomenklatura' in Russia. You are aware perhaps of the socialist dictators in Africa who would amass huge Swiss bank accounts while their people lived in poverty. You are probably aware that Reagan's tax cuts ended up putting millions of lower income people *off* the income tax rolls while making the top 10% pay a larger share.
The idea that you have to screw up the economy with semi-socialism to avoid full-blown socialism is not based on reality of history. Free markets create economic booms, which increases social stability.
"Don't you remember how the greed of Latin American elites concentrated the land and other wealth wealth in the hands of the few, creating mass poverty, corruption and military dictatorships?"
This is a direct result of Government power being used for economic expropriation. Fascism and Communism are two sides of the same coin ... The OPPOSITE of this is to prevent any kind of such corruption, with limited Governments and free market economies.
Yes, of course. I even knew people belonging to nomenklatura. Their income was about few times higher than average wage. This was not very "large inequality".
You are aware perhaps of the socialist dictators in Africa who would amass huge Swiss bank accounts while their people lived in poverty.
You are mixing apples and oranges. These dictators were thieves no less than the the free market dictators from Africa. And possibly less.
Now, in order not to get confused. The "free-market economies" DO NOT EXIST, DID NOT EXIST, AND WILL NOT EXIST.
Free market is a ideological concept which if implemented leads not to more "free market" but to instability which leads to the less freedom.
Karl Marx created his system by studying the ideology of free market. The domination of free market ideology is the most helpful condition for the advancement of socialism.
The success of free Western societies in second half of XX century was caused by the redistribution system preserving market economy and creating large prosperous middle class. This was the outcome of competition with Soviet system and with Fascism. This competition was won by the people like FDR and Adenauer.
Now the competition is gone and the political/economic elites want to restore mythical free market from Dickensian England. As it is said in the book of Proverbs: "As a dog returneth to his vomit, so a fool returneth to his folly."
As someone said - if there are people so rich that they can buy government some of them will do it. The large stratification leads to the oligarchical system and economic expropriation.
Oh yeah...economic booms....like that one in 1929....what a BOOM! that was!!!
Yep, free markets just don't do anything other than just make boom, boom, boom....
I think you need to review your notes from your Economic History class...