Essay On Capitalism In America

America has adopted the same economic system of emphasizing private ownership since its founding over 250 years ago. During that time, other countries resisted American capitalism and adopted socialism, an economic theory based on government control, as their primary economic system. Although socialism has some advantages in theory, capitalism is the superior economic system to socialism because it allows people to pursue their passions and self-interest while benefiting society. Capitalism allows both producers to produce what the market wants while also providing consumers with more options available to them. In a capitalist society, producers will produce products based on consumers' demands rather than the government's. This system results

This form of economy makes America a wealthy country. Capitalism allows individuals to pursue their passions while also allowing them to profit from their efforts. Producers will be more willing to take risks and try to innovate when they believe they will be rewarded for their risks and efforts. This pursuit of individual profits creates an abundance of wealth that unifies America as a whole. According to Capitalism: The Unknown Ideal by Ayn Rand, “America’s abundance was not created by public sacrifices to ‘the common good,’ but by the productive genius of free men who pursued their own personal interests and the making of their own personal interests and the making of their own private fortunes.” While pursuing self-interest can produce large profits, it can also lead to unfair practices such as taking advantage of workers, harming consumers, unfair business practices, and environmental problems. However, these unfair business practices can be limited by minimal government regulation designed to prevent the abuse of capitalism, such as environmental regulations and basic worker protections. This system allows individuals the freedom to pursue their self-interest while mitigating capitalism's adverse

In a capitalist society, prices and wages are set by supply and demand, providing the true value of labor, goods, and services to society. Adam Smith’s The Wealth of Nations states, “When the quantity of any commodity which is brought to market falls short of the effectual demand, all those who are willing to pay[...] cannot be supplied with the quantity which they want.[...] Some of them will be willing to give more. A competition will begin among them, and the market price will rise.[...] When the quantity brought to market exceeds the effectual demand, it cannot be all sold to those who are willing to pay.[...] The market price will sink.” By contrast, in a socialist government, production is controlled by the government. In addition, the government sets prices and wages, meaning everyone gets equal pay and access to goods and services. However, this results in a system in which production, prices, and labor are established based on a political agenda rather than their true value to society. For example, socialist governments may favor eliminating social media as a means of suppressing dissent. However, in a capitalist society, social media and other forms of expression can survive as long as there exists suitable demand. People in a capitalist society can satisfy their wants rather than be constrained by government regulations designed to sustain the governing body’s