Big Government Capitalism

1. Capitalism can be defined as a socioeconomic structure which implements the use of labor and competition to create a “market economy” that strives to fulfill the ultimate goal of increasing profit. Capitalism has many characteristics that lead some to concur it as a structure that is “[when left] unguided by government, a free market economy [that] has the potential to run off the rails and produce an economic disaster” (W&R, 441-442). The idea that capitalism led to the Great Depression is just another theory because true capitalism [free from government intervention] is also just a theory. In fact, government regulation plays a few parts in the modern-day capitalistic structure of the economy. This involvement in terms of regulations has helped capitalism flourish from a being a “small government capitalism” into “big government capitalism”.
To explain further: capitalism can adapt to new technological and social advancements that are introduced into the market. And the market is considered a competitive one because instead of a seller deciding the price of products, the market adapts and considers the supply and demand when deciding the price of a product. This allows for many different suppliers to the market, instead of one that acts as a monopoly. Benefits of capitalism include: the ability for the economy to grow through the increase of productivity, innovations, and profits. In other words, when a competitive market is in place, like that found in capitalism, economies of scale (ETOD) come into play. When there is a rise in production, there is in turn a rise in profits; this is encouraged in a capitalistic