Quote from Covertibility:
Ironic that the car companies in the socialist countries (Japan, Germany) don't need bailouts.
Real world is so far different than textbook academialand.
"What does that say about the field of economics, which claims to be a science? It’s an enormous blot on the reputation of the profession. There are thousands of economists. Most of them teach. And most of them teach a theoretical framework that has been shown to be fundamentally useless."
In truth, your point about 'socialist' countries being somehow different from us is a flawed one.
The United States has never been a free market. The government and political agendas have always meddled with things to stablize things (which I actually think is good). The existence of central banking, regulation, doctrines, etc is all 'socialism' in the face of free market.
It leads to the original question posed actually being flawed. One could argue the economic growth many of the most developed markets have achieved is a function of central banking, political stability, trust in the system.
Free markets in their pure unregulated (central planned) form are unforgiving, brutal, and don't always lead to prosperity. Free markets are war and relatively anarchistic, primitive constructs. They are only good at one thing: price discovery.