Capitalism In The United States Essay

Poverty has had several highs and lows in United States history. The most recent peak was in 2010 when the unemployment rate was at an all time high. However, this was mainly caused by the competitiveness bred into people to make money in the United States’ capitalist society. Capitalism is an economic and political system in which a country's trade and industry are controlled by private owners for profit. This is one of the most common, and successful, systems in the world. But it does not come without consequences. Capitalism does not succeed without hurting the lower class. While capitalism has proven effective in the past, the immoral nature of the United States’ economic system actually harms many of its citizens.

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Capitalist economies have two basic types of markets: open and closed. Open markets allow goods, services, and labor to be bought and sold freely without restrictions or regulations from government agencies or organizations. In contrast, closed markets require permission from the owner before they can be sold or used. The open market is what becomes too expensive for most United States citizens. Capitalism provides opportunities for growth in wealth unlike any other economic system. This system is known as a free market economy. The key characteristic of a free market economy is that prices guide allocating resources efficiently, which leads to prosperity for all participants. In addition, capitalism provides incentives for people to grow their own businesses and profit without governmental restrictions. However, this only occurs with good investments and steady business. But another major factor in this is how organizations are taxed. The taxation of major corporations is incredibly affordable in comparison to citizens and smaller businesses. Most businesses are required to pay a set income tax. However, this set tax has, in the past, been a much larger toll on small businesses over large corporations. To make matters worse, many large companies such as FedEx avoid paying their income taxes at all. With the current system, they file for deductions as well as accelerated depreciation. Most often, the profits that are made from smaller companies are required to go right back into their system in order to stay afloat and profit, while still paying this tax (Lister). But it may be said that it allows financial freedom from government supervision. The most important characteristic of capitalism is that it allows people to pursue their own self-interest without government intervention or supervision. As opposed to socialism or communism, this economic system has allowed people to have more financial freedom