Capitalism: a term to denote an economic system that has helped build up the United States to be the superpower that it is today. Capitalism is an economic and political system in which a country's trade and industry are not controlled by the state, but by private owners for profit. This political economy came into prominence in the nineteenth century and continues to be practiced every day. Although the United States follows a capitalist structure, there are plenty of socialists that live their lives promoting socialism. Socialism is an economic and political theory of social organization that advocates means of production, distribution, and exchange should be owned or regulated by the community as a whole. Even though socialism promotes more equality in a nation, it also promotes laziness, …show more content…
mediocrity, and failure.
On the other hand, capitalism encourages people to make the best of their talents. In fact, most politicians prefer an economic system that places power in their hands (capitalism) as opposed to a system that makes them less relevant (socialism). Capitalism is a superior form of government, than socialism, due to its long lasting benefits.
It seems as though a large amount of the younger population today does not understand how capitalism functions and produces goods. Capitalism is based on free market, or laissez-faire, a concept created by philosopher and economist, Adam Smith. Laissez-faire means public companies and private businesses are more profitable without influence of government regulation. That idea is also reflected in libertarianism, a more extreme version of laissez-faire. This ideology has proven to be an effective form of economic system in the United States . Capitalism produces a faster growth rate, than socialism does, and economies
benefit a significant amount more under a capitalist government. John Hawkins, a skilled columnist with a degree in psychology from the University of North Carolina at Charlotte, seems to agree with that statement. In Hawkins article, “5 Reasons Why Socialism is Inferior to Capitalism,” he expressed the fact that capitalism is truly a more practical form of economical government over socialism. Even though he often writes opinion columns, he conveys his ideas through facts, statistics, and specific examples in this column. One of his main points is the economical benefits under capitalism. He says, “For all the Occupy Wall Street talks about the “1%”, if you make $34,000 a year after taxes, you are apart of that 1% - and Americans make up half of the total 1% on the planet. You can thank the growth created by capitalism for that” (Hawkins 1). With this statistic, he helped prove his idea that economies, like America’s, are given a large advantage under capitalism. Under socialism, people contribute a majority of their earnings in the form of taxes to the government. The government has to impose more taxes to be able to support all the services offered to the public for free or at lower costs.
In addition to high taxes, their production of goods is extremely low compared to capitalist countries. Harry and Fred Magdoff speak passionately about this topic in their article, “Approaching Socialism”. While being wholehearted socialists, the Madgoff brothers recognize the good that has come from capitalism. They comment that, “Capitalism, with a number of political variations has produced more goods, inventions, new ideas, and technological advances than in all of previous history” (Madgoff 19-61). As qualified writers and a good understanding about economy in governments, the Madgoffs agree with the fact that capitalism produces more of what the public needs, versus socialism. Capitalism is so prominent in the world that even socialists partly agree this economic system is successful. Through economic goods and means of production, capitalism reigns superior.
Some may argue that socialism is more moral because it promotes equality; however, that is not the case. Capitalism can be known as a moral social system that allows the individual to be virtuous. In a social context, individual rights define one's freedom of action, and free-market is based on individual rights. Capitalist governments work extremely well with human nature. Columnist John Hawkins seems to agree with that statement. As well as proving the productive side of capitalism, he elaborates on the human nature and moral side of capitalism and how it clearly benefits the population. He proclaims, “Because capitalism works hand in hand with human nature and asks people to serve themselves as they serve others, it creates a much more productive society…” (1 Hawkins). Once again, America has been able to prove this quote true and Hawkins has seen it first hand. The whole concept of capitalism is working for oneself without government help or regulation, and working for oneself has modified the human nature of people living under capitalist governments.
Capitalism has also changed the morals of some of the general population. Ayn Rand, a best-selling author and outstanding novelist and philosopher, agrees with the proclamation that morals have adapted under capitalism. In Rand’s book, Capitalism: The Unknown Ideal, she profusely elaborates on this idea. She writes, “The moral justification of capitalism lies in the fact that it is the only system consonant with man’s rational nature, that it protects man’s survival qua survival, and that the ruling principle is: justice” (20 Rand). She expresses that morals lie in the hand of capitalism and that it protects the morals one has. She also talks on the idea that capitalism allows man to express his own ideas, thoughts, and morals. Rand states, “Capitalism is the only system in history where wealth was not acquired by looting, but by production, not by force, but by trade, the only system that stood for man’s right to his own mind, to his work, to his happiness, to himself” (17 Rand). Since Rand is an experienced philosopher, she can confidently say this statement is true based on extensive research on this topic. She is helping prove the fact that capitalism seems to be the only system that truly accepts a man and all his ideas, morals, and so on. Capitalism is the only system geared towards a life of rational being and the only moral politico-economic system in history.
Capitalism brings other benefits as well as economic and moral betterment. Although capitalism is every man for themselves, there is still equality for all under this system in addition to its other characteristics. In Milton Friedman’s book, Capitalism and Freedom, this American economist and Nobel Peace Prize winner in Economic Sciences writes about the bigger ideas on capitalism, but also includes smaller elements, such as equality under capitalism. He includes many proposals in his book and these proposals have seen to be exceptionally influential on his readers. He states, “By relying primarily on voluntary cooperation and private enterprise, in both economic and other activities, we can insure that the private sector is a check on the powers of the government sector and an effective protection of freedom, speech, and of thought” (136 Friedman). He is saying that anyone under this system will have an equal amount of protection of freedom, speech, and thought. Americans would prefer the equality that capitalism gives over equal pay under socialism. Another benefit under capitalism would be the opportunity that is given. Socialism provides fairness while capitalism provides opportunity. In a country like the United States, fairness is good but opportunity is better. An educated publisher from the magazine, The Economist, wrote an informative article on all the good that comes from capitalism. In the article, “Capitalism in America” the author says, “... fairness, meaning a society without great gaps between rich and poor, has rarely mattered as much to Americans as ensuring opportunity for all” (“Capitalism in America” 1). While this may not be true for all Americans, it has proven to be true over the majority. With the equal pay under socialism, people do not want to work as hard so fewer opportunities are given. Capitalism presents plenty more benefits tham socialism, and these benefits allow capitalist countries to be economically successful.
Capitalism and all its of its strengths comes with flaws that socialism does better. One may think that in the sense of money and social classes, there is more equality in these categories under socialism. A well read and a well written author from the site, Liberation School, spoke on socialism, defending its side. They spoke in depth about the equality portion of socialism and why it is better than capitalism. In the article, “6 Ways Socialism is Superior to Capitalism”, the author wrote, “Socialism is the first step in returning human beings to the society in which our species developed based on solidarity, cooperation and interaction with each other based on equality” (“6 Ways Socialism…” 1). This author is showing in their article that socialism is the next step to a truly equal society, where capitalism is still keeping everyone separated. Socialist can see capitalism as a race that they have already lost due to “tougher competition”. This competition has the working class working and competing with each other to reach the top. With everyone competing for the same goal, no one goes anywhere making this system seemed flawed. Socialism eliminates competition of the basis of survival through equal pay, products, and eliminates social classes. The objective of socialism is to produce a classless society. A GreenGarage admin also spoke on social classes in socialism in their article, “10 Biggest Pros and Cons to Socialism”. They said, “Socialists believe that equality among people is important, including social class. By making people equal to each other, the gap between the rich and the poor will be bridged. Opportunities are handed to members of the community regardless of race, color, age and gender” (“10 Biggest Pros…” 1). This knowledgeable author is saying that equal opportunity is given to those who want it, but equality in social and economic classes will deteriorate. Socialism is guaranteeing social and economic rights, making it the more logical system to want to live under. However, one could agree socialism is not the way they would chose to live. Socialism promotes mediocrity and idleness. Even though it may create what would be considered a “classless society”, people learn many more social and life skills under capitalism. Philosopher Milton Friedman also talks on this topic in his book, Capitalism and Freedom. He writes, “The great virtue of a free market is that it does not care what color people are; it does not care what their religion is; it only cares whether they can produce something you want to buy. It is the most effective system we have discovered to enable people who hate one another to deal with one another and help one another” (Friedman 174). With Friedman’s background in philosophy, he has a good understanding of human ethics and nature and with his extensive studying about capitalist and socialist governments. He also has an even better understanding of human ethics under a capitalist system. Friedman proves that many socialist welfare societies fail to do what they intend to do and criticizes the system as a whole. Capitalism, with perfections and imperfections, remains superior to any socialist governments.