Capitalism

By definition, Capitalism is an economic system controlled chiefly by individuals and private companies instead of by the government. In this system, individuals and companies own and direct most of the resources used to produce goods and services, including land and other natural resources labor, and capital. Capital includes factories and equipment and sometimes the money used in businesses (Friedman, 5).

Capitalism stresses private economic decisions. People are free to decide how they will earn and spend their income. Companies may choose which goods and services to produce and how much to charge for them. They also compete with one another to sell products. Nations whose economies are based on capitalism include the United
States, Germany, Canada, and Japan.

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Although a private individual or group of individuals may control their income and a large section of an economy, the government can control some aspects of the economy in every nation. Capitalism is some times called Free enterprise, despite its limits established by the government. Many organizations and businesses flourish from the existence of capitalism. Non-profit organizations prosper from capitalism such as: The Roman Catholic Church.

As one of the largest and most common religions in the world, the Roman Catholic faith is sustained through capitalism, for it is a capitalist organization. It can be considered a Capitalist organization in the fact that income is freely given in return for nothing. Ones religion can definitely influence their economic decisions, lifestyle and social status. The Roman Catholic Church believes that capitalism can become a type of injustice. For example, some people in capitalist nations can afford many luxuries. But at the same time, others lack adequate food, housing, and other needs. This unequal distribution of wealth results largely from capitalisms emphasis on individuality. The Catholic Church cites examples of inequality as incorrect. However, the church and other religious denominations thrive from others prosperity and income.
Capitalism is a definite social justice issue. One reason why people do not necessarily feel obligated to help others less fortunate than him or herself is because the economy focuses on individualism, which leads to greed and hoarding. Another reason why capitalism is a social justice issue is that it deprives certain people of their human rights as well as the dignity and respect that all humans deserve. As a result, we can ask ourselves, are we truly free?
On Independence Day we commemorate the birth of America as a free nation. But even more than that, we commemorate the birth of Americans as free men. At a single stroke, the Declaration of Independence and its ideas set America free from England, and set Americans free from their own government. The Founding Fathers instituted America’s government to protect the freedom of its citizens, and to secure their rights to “Life, Liberty and the Pursuit of Happiness.”
These rights were created to secure freedom of thought and action for all Americans. Freedom of thought is the freedom of an individual to use his mind: to educate and inform himself; to make his own judgments; to reach his own conclusions; to set his decisions; to hold his beliefs; to choose the whole course of his life. Freedom of action is the freedom of an individual to act on his own judgment: to pursue his/her values; to strive for his/her goals; to work and to keep the product of his/her work; to associate and trade with others; to act for the attainment of his/her inner happiness.

The implementation of individual rights had revolutionary effects. The freedom and progress that followed were unprecedented. Individuals, free from government interference, pursued their happiness restlessly and produced tremendous amounts of wealth in the process. Individuals took responsibility for their lives: for their education, their health care, their jobs, their retirement, and their money. While individuals acted by right, government acted by permission. In 150 years America became the greatest nation on Earth (Kronen, 72).

Before the turn of the century, however, while America still prospered from its founding ideals, a set of opposite ideals surged and gradually took over the old ones. In 1863, the institution of the military draft set the principle that individuals did no longer have a right to their own lives: the state did. From that day on every American no longer owned his life, but held it by permission.

In 1913, the federal income tax was created and set the principle that individuals did not have a right to their productive effort–their earnings. Government’s role reversed from protector to usurper of our rights. From that day on every American no longer owned his income, but held it by permission (Pasley, 10,11)
Along with people’s money, government took responsibility for their lives. Government assumed the task of providing the people with education, health care, housing, employment, and much more. The greater the share of people’s lives the government undertook to provide for, the more it taxed the people. To appease the masses, the richest were taxed the hardest. But all paid the price in the loss of our rights. Government became a devouring beast, and most of the American people approved of it.

Regrettably, individual rights have been eroded to a point where we already lost much of the freedom they once secured us. The American people, once independent and free from government control, are now subject to all kinds of taxation and regulation.

Today in our society, we need government’s permission to drive, to work, to open and to run a business, and even to own and hold property. The government is no longer our servant; it became our master. The government, once established to ban the use of force among men, now is the greatest aggressor of all. In the name of helping the needy, it assaults the productive and strips them of their rights and property. But if productive Americans have no rights then no American has them either. America, born as a free country, has been transfigured into a welfare state, where the needs of some became a blank check on the fortunes of others (Tate, 44,45).

But we are still in time to regain our rights if only we understand better their meaning, their value and their power. If Americans are to be the free again, and America is to remain the greatest nation on Earth, we must hold sacred our individual rights to “Life, Liberty and the Pursuit of Happiness.”
America was founded on the noblest of ideals: the right of every individual to his life. America will only live as long as its ideals live in our hearts and in our minds (kronen, 102).

Capitalism

Capitalism
SENIOR PROJECT RESEARCH PAPER
BYJASON GERKEN
CAREER ENGLISH
MRS. CONLON
5/14/95
Today in the United States, a free market system or capitalism is the
main economic system. I am interested in this subject because I someday wish to
own my own business. I believe that in the future this topic will be very
useful to me. Among the topics that I will discuss are the greeks and romans
early practices of capitalism, the ideas of Joseph Schumpeter, Rush Limbaugh,
and Karl Marx, corporations, regulation by the government, and Reaganomics. I
will also discuss the relationship between inflation and unemployment. In
addition, I will give my own perspective on the economic theories that I’m
presenting. These are just a few of the things that I will be discussing in this
paper.


HISTORY OF CAPITALISM
Many of the institutions of capitalism can be traced back to Greek and
Roman times. Things such as trade, moneylending, and insurance were well known
practices to them. Unfortunatly, growth of the Roman Empire prevented further
development of a private business class. As power over economic growth came
back to the people or lords during the Middle Ages, modern capitalism started to
evolve. (The Software Toolworks Illistrated Encyclopedia)
In the late Middle Ages, the medieval economy was based on MANORALISM.

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This system said that peasants worked on the land that the lord’s owned, but
everthing that was produced by them was kept in return they had to perform
services or pay dues to there lord. During this time period, there was no
incentive to produce large and productive resources. The end of the midieval
Manoralism was brought about by a larger demand for goods. Kings competed
against lords, and lords competed with peasants for the rights to what was
produced. As a result, there was an emergence of merchants and businessmen who
accumulated large sums of capital. In addition, there was also a large
emergence of banks and the start of corporations. (Galbraith Pg. 58)
The only other economic system that got much attention was a new idea
called Communism. A person named Karl Marx wrote a book called the Communist
Manifesto which thought of the state as being the main controller of economic
growth, unlike capitalism where the people in a free market are the main
controllers of economic growth. In the 19th century when most of the world like
Britan, France, Germany, and the United States were in the age of Laissez-Faire
economic capitalism, other countries like the Soviet Union and China followed
Karl Marx’s Communism. (Galbraith Pg. 97)
Modern Capitalism
The main thing that drives capitalism today is the large corporations
that are able to finance large operations to promote economic growth. As
corporations got bigger and bigger, many liberals favored breaking up
corporations and putting them under state control. They pressed for antitrust
laws to get a competitive economy. This meant that some corporations that got
too big had to be broken up to make smaller companies in order to create a
competitive economy. The large corporations fought back by saying that they
were no less competitive than smaller businesses. An Austrian-American
economist named Joseph Schumpeter who argued in defense of large corporations
said, “the prime mover in capitalist progress is not the small businessperson
but the entrepreneur who introduces new technologies and develops them.” He
also said “Capitalism gives creative people the freedom to make innovations,
unlike state-runned economies which tended to stifle this creative force.” He
also predicted that capitalism would eventually be replaced by some form of
socialism in order to protect the people and the global environment. (The
Software Toolworks Illistrated Encyclopedia)
Arguments for and Against
Capitalism today differs from capitalism of the 19th century because
of its dependence on the state. Today government is expected to take measures
in order to stop inflation and unemployment. A British economist named John
Maynard Keynes said, “government should spend more money in times of slump, and
also reduce taxes in order to increase aggregate demand for goods and services,
and in boom times the policies should be reversed to hold down inflation.” Most
liberal economists believed that large corporations ought to be broken up and
nationalized so that their manager would be responsible to the public as a whole.

(Lekachman Pg. 51)
Other conservative econimists stated that evan large corporations were
ultimately controlled by the market where they sold their product and the market
is subject to the desires of the public. Conservatives also pointed out that
government spending by federal, state, and local governments amounted to more
than one-fifth of the gross national product. The same thing seemed to be
happening in other European countries like Sweeden, and Britain. (Lekachman Pg.

62)
During the 1980’s when Ronald Reagan was elected president it
signaled the return of capitalism as the dominant economic idea in the United
States. Reagan’s two main policies or objectives were to reduce the size of
government and deregulate the economy. The main benefit of Reagan’s new
policies of lower taxes and tax reform was the virtual elimination of inflation.

As a result, the U.S. economy expanded and new records were set on Wall Street.

Critics of Reagan favored tax and spend policies that would inflate the economy
into what we are now seeing in Russia. As our National Debt got larger, they
blamed it on Reagan, but as I see things it was caused by the Democrats in
Congress during the 70’s who authorized many new spending progams that were not
able to be paid for. This is why there was such a problem with inflation during
the 70’s. I believe it to be unfair to blame him when we saw some of the
biggest economic growth in the history of the U.S. during the 1980’s.Reagan,
as well as many other conservatives, believed that if you cut taxes,
it would give incentive to businesses to invest there marginal tax
dollars,causing them to earn more money and pay more taxes on their earnings.

As a result you get rid of inflation and unemployment at the same time. Critics
still protest, saying that these policies are unfair to poor people and
minorities. This statement has some truth to it, but in the words of Rush
Limbaugh, “Capitalism, though not promising prosperity to all, greatly improves
the lot of most and offers opportunity to all.” (Limbaugh Pg. 273-274)
The concept that I talked about in the last page is called supply-side
economics. Liberals think that if you cut taxes, you get less revenue. Right?
Wrong! Actual revenues nearly doubled during the 80’s from 550 billion to 991
billion. To go even further I would like to see a flat tax implemented. A 15-
18 percent flat tax rate would stimulate the American economy greatly. This
would happen by giving huge incentive to everybody to make more money. Of
course, some liberal might confuse you by saying that making money is greedy.

Sure the rich will get richer, but their businesses will grow due to the fact
that they will have more money to employ more people creating less unemployment.

Also people currently avoiding taxes either legally or illegally will be brought
into an evev system where they will not need to avoid taxes through current
legal loop holes. The reason why people like Bill Clinton get elected to be
president is because he plays the game of class warfare. Clinton did a good job
of convincing the poor and the middle class that Reagan did them wrong. Clinton
believes that the rich should be punished by higher taxes. I ask you, “why
should you punish prosperity?” The main goal of the liberals and Bill Clinton
is the reditribution of wealth. The key question to ponder is, ” when do
profits become unfair and excessive?” (Limbaugh Pg. 118-119)
In conclusion, capitalism is the best thing to help the United States
economy grow. The entrepreneur is the person who makes this economy rum
smoothly and profitably. A creative person at the head of a company can do alot
more than a person who is at the head of a state-runned bureaucracy. This is
true because the entrepreneur has incentive to do the job correctly, but the
bureacrat has none because he knows that his job will still be there tomorrow no
matter how he performs. I will agree that pure capitalism won’t work because
you still need environmental laws and other laws to protect the consumer.

However, problems begin when extreme socialistic views like Bill Clinton’s are
imposed.


Business

Capitalism

Capitalism CAPITALISM Today in the United States, a free market system or capitalism is the main economic system. I am interested in this subject because I someday wish to own my own business. I believe that in the future this topic will be very useful to me. Among the topics that I will discuss are the Greeks and Romans early practices of capitalism, the ideas of Joseph Schumpeter, Rush Limbaugh, and Karl Marx, corporations, regulation by the government, and Reaganomics. I will also discuss the relationship between inflation and unemployment.

In addition, I will give my own perspective on the economic theories that I’m presenting. These are just a few of the things that I will be discussing in this paper. HISTORY OF CAPITALISM Many of the institutions of capitalism can be traced back to Greek and Roman times. Things such as trade, money lending, and insurance were well known practices to them. Unfortunately, growth of the Roman Empire prevented further development of a private business class. As power over economic growth came back to the people or lords during the Middle Ages, modern capitalism started to evolve.

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For You For Only $13.90/page!


order now

(The Software Tool works Illustrated Encyclopedia) In the late Middle Ages, the medieval economy was based on MANORALISM. This system said that peasants worked on the land that the lord’s owned, but everything that was produced by them was kept in return they had to perform services or pay dues to there lord. During this time period, there was no incentive to produce large and productive resources. The end of the medieval Manoralism was brought about by a larger demand for goods. Kings competed against lords, and lords competed with peasants for the rights to what was produced.

As a result, there was an emergence of merchants and businessmen who accumulated large sums of capital. In addition, there was also a large emergence of banks and the start of corporations. (Galbraith Pg. 58) The only other economic system that got much attention was a new idea called Communism. A person named Karl Marx wrote a book called the Communist Manifesto, which thought of the state as being the main controller of economic growth, unlike capitalism where the people in a free market are the main controllers of economic growth. In the 19th century when most of the world like Britain, France, Germany, and the United States were in the age of Laissez-Faire economic capitalism, other countries like the Soviet Union and China followed Karl Marx’s Communism. (Galbraith Pg.

97) Modern Capitalism The main thing that drives capitalism today is the large corporation that is able to finance large operations to promote economic growth. As corporations got bigger and bigger, many liberals favored breaking up corporations and putting them under state control. They pressed for antitrust laws to get a competitive economy. This meant that some corporations that got too big had to be broken up to make smaller companies in order to create a competitive economy. The large corporations fought back by saying that they were no less competitive than smaller businesses.

An Austrian-American economist named Joseph Schumpeter who argued in defense of large corporations said, the prime mover in capitalist progress is not the small businessperson but the entrepreneur who introduces new technologies and develops them. He also said Capitalism gives creative people the freedom to make innovations, unlike state-runned economies which tended to stifle this creative force. He also predicted that some form of socialism would eventually replace capitalism in order to protect the people and the global environment. (The Software Tool works Illustrated Encyclopedia) Arguments for and Against Capitalism today differs from capitalism of the 19th century because of its dependence on the state. Today government is expected to take measures in order to stop inflation and unemployment.

A British economist named John Maynard Keynes said, government should spend more money in times of slump, and also reduce taxes in order to increase aggregate demand for goods and services, and in boom times the policies should be reversed to hold down inflation. Most liberal economists believed that large corporations ought to be broken up and nationalized so that their manager would be responsible to the public as a whole. (Lekachman Pg. 51) Other conservative economists stated that even large corporations were ultimately controlled by the market where they sold their product and the market is subject to the desires of the public. Conservatives also pointed out that government spending by federal, state, and local governments amounted to more than one-fifth of the gross national product.

The same thing seemed to be happening in other European countries like Sweeden, and Britain. (Lekachman Pg. 62) During the 1980’s when Ronald Reagan was elected president it signaled the return of capitalism as the dominant economic idea in the United States. Reagan’s two main policies or objectives were to reduce the size of government and deregulate the economy. The main benefit of Reagan’s new policies of lower taxes and tax reform was the virtual elimination of inflation. As a result, the U.S.

economy expanded and new records were set on Wall Street. Critics of Reagan favored tax and spend policies that would inflate the economy into what we are now seeing in Russia. As our National Debt got larger, they blamed it on Reagan, but as I see things it was caused by the Democrats in Congress during the 70’s who authorized many new spending programs that could not be paid for. This is why there was such a problem with inflation during the 70’s. I believe it to be unfair to blame him when we saw some of the biggest economic growth in the history of the U.S. during the 1980’s.

Reagan, as well as many other conservatives, believed that if you cut taxes, it would give incentive to businesses to invest there marginal tax dollars, causing them to earn more money and pay more taxes on their earnings. As a result you get rid of inflation and unemployment at the same time. Critics still protest, saying that these policies are unfair to poor people and minorities. This statement has some truth to it, but in the words of Rush Limbaugh, Capitalism, though not promising prosperity to all, greatly improves the lot of most and offers opportunity to all. (Limbaugh Pg. 273-274) The concept that I talked about in the last page is called supply-side economics. Liberals think that if you cut taxes, you get less revenue.

Right? Wrong! Actual revenues nearly doubled during the 80’s from 550 billion to 991 billion. To go even further I would like to see a flat tax implemented. A 15-18 percent flat tax rate would stimulate the American economy greatly. This would happen by giving huge incentive to everybody to make more money. Of course, some liberal might confuse you by saying that making money is greedy. Sure the rich will get richer, but their businesses will grow due to the fact that they will have more money to employ more people creating less unemployment.

Also people currently avoiding taxes either legally or illegally will be brought into an even system where they will not need to avoid taxes through current legal loop holes. The reason why people like Bill Clinton get elected to be president is because he plays the game of class warfare. Clinton did a good job of convincing the poor and the middle class that Reagan did them wrong. Clinton believes that the rich should be punished by higher taxes. I ask you, why should you punish prosperity? The main goal of the liberals and Bill Clinton is the redistribution of wealth. The key question to ponder is, when do profits become unfair and excessive? (Limbaugh Pg. 118-119) In conclusion, capitalism is the best thing to help the United States economy grow.

The entrepreneur is the person who makes this economy rum smoothly and profitably. A creative person at the head of a company can do a lot more than a person who is at the head of a state-runned bureaucracy. This is true because the entrepreneur has incentive to do the job correctly, but the bureaucrat has none because he knows that his job will still be there tomorrow no matter how he performs. I will agree that pure capitalism won’t work because you still need environmental laws and other laws to protect the consumer. However, problems begin when extreme socialistic views like Bill Clinton’s are imposed. Government Essays.

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