Burlington High School
Burlington, Kansas
Teacher: Mrs. Devra Parker
The Societal Pendulum: Capitalism vs. Socialism
By Lacie Reed
12th Grade
The debate, over which political-economic system we are, capitalism or socialism, has been a big topic of discussion for several years. After doing some deep thinking and a little research, I have come to conclusion that we, the United States of America, resemble a capitalistic society. I wouldn’t consider the United States a pure capitalist nation but more so than a socialist society. I feel our societal pendulum swings much farther away from a socialistic society compared to a capitalistic society. Capitalism is the complete separation of economy and state. Capitalism is the social system based upon private ownership of the means of production, which requires a completely uncontrolled and unregulated economy where all land is privately owned. But the separation of the state and the economy is not the main point; it is only a part of the idea that capitalism is based upon, which is an individual right. This means that capitalism recognizes that each and every person is the owner of his own life, and has the right to live his/ her life in any manner he/she chooses as long as he/she does not violate the rights of others. Socialism is based on various theories or systems of social organization in which the means of producing and distributing goods is owned collectively or by a centralized government that often plans and controls the economy. Socialists believe that the inequalities that exist in our society are unfair and that the minority of the population should not own the majority of the wealth.
I would say we are a capitalist society because we have low unemployment, low interest rates, extremely high standards of living, and good companies that are putting technology in our society for high quality consumer products. By extremely high standards of living, I mean using our money to purchase products we want. This provides us with more material products; the consumer decides what we want such as food products, beauty products, and construction products. If we lived in a socialist society, we would have to buy the products the government decided upon, or what they felt best fit everyone or benefited the government. There are so many businesses today in the United States that make the same product, but each [is] made by a different company[y]. We are given the opportunity to decide which product we like…best. In the United States of America, we also are privileged enough to privately own land and do whatever we choose with it. We can build houses or build a business on the land we purchase. We can raise crops of our choice on our land. The money we make with the business or land is ours to do what we chose with. For example, if a man were to build a T-shirt shop on his privately owned land, he would receive all the money he earned from his business. In a socialistic society the government would set the business up so the government would [receive and distribute the production].
I feel we are very privileged to get to make the decisions and choices we do each day. Being in a capitalist society has prevented the creation of monopolies. A capitalistic society helps see to it that not just one group or business produces, sells or controls one goods or services.
We have also implemented capitalism around the world. It has created millions of jobs and a large variety of reasonably priced goods. Capitalism has brought phone services to nearly 300 million homes in rising nations. There is a transfer of $2 trillion from rich countries to poor countries through equity, bonds, and loans. It has really helped to diminish the existence of most dictators by making information available to the sheltered societies. Now, the Internet has helped to narrow the hole that separates rich nations from poor nations and will do even more in the years to come.
These are just a few points that demonstrate how well capitalism works and how it has helped the world. These few bits of information are proof of why capitalism is politically, economically, and socially superior to socialism.
In the United States of America, we are very fortunate to be given the options we are given. We are not completely controlled by our government and have a say in what we want. Being a capitalistic society has given us the opportunity to own land, open our own businesses, make a profit from our businesses, stop the creation of monopolies, purchase the products we want, and, most importantly, give us our individual rights. Some people will never get the chance to share these experiences that we take for granted for every day.
Answers To Questions Prompted By The Required Reading
Seven Principles of
Sound Public Policy
Q1- What does Mr.
Reed mean when he says "Equal people are not free."?
Mr. Reed means by h is statement that if everyone has the same status then they technically are not free because they are controlled by other people in our government that allows them to make laws and decisions that control our everyday lives. In order to maintain exact equality then the freedom would be limited greatly because the people would have to obey extremely strict laws. No one would be able to overachieve anything because they wouldn’t be equal among their peers, so their freedom is gone within equality.
Q2- What is the deadly trade-off to reliance upon government, according to Reed?
The deadly trade- off to relying on the government is not a good concept when actually thought about. The government has control over our liberties, peace, and opportunities. The people see this is as a good idea that thee government provides all these for us, but unfortunately the people tend to rely on the government so powerful, they are able to take away our freedom, peace, and opportunities just as quickly as they provide them for us, and just as easily.
The Calf of Democracy
Q3- Why did the Founding Fathers assure that the United States became a
republic rather than a pure democracy?
Our founders established a republic, and a republican form of government, modifies pure democracy considerably. It provides a mechanism by which almost anyone can have some say in some matters of the government. If we want we can run for office, support and vote for candidates and causes. We have the right to speak out, and some matters are relied on by a majority vote.
Q4- What is the saving grace of democracy according to Lawrence Reed?
Reed says the saving grace of democracy is that if can be changed without violence, whether the change is good or bad. The government allows for new and different ideas, which will help it to improve and stay in power.
Freedom Is Not a
Doctrine
Q5- Richard Haas gives two unusual reasons for advocating democracy. What
are they?
Hass says that promoting democracy is a useful component on the campaign against terrorism. The other reason he gives for advocating democracy is the mature democracies tend not to make war on each other.
Q6- Give two reasons you personally would promote democracy.
I promote democracy
because it gives citizens the chance to have a say in how their government is
run, it doesn’t give all the power to the central government. Also, it protects
our individual rights. We are free to say what we want about our country
without risk of being arrested or abused.
Q7- Comment (any length) on President Bush's current foreign policy.
I think that President
Bush, considering the amount of pressure he is under, is doing a great job. We
are trying to help another country improve their government and live a free
life. That is not something many countries would do.
Internet
Activities
Visit the Society
for Disseminating Economic Knowledge: "New Economic School-Georgia"
Georgia was part of the old Soviet Union.
You will find this web site by browsing the Economic Freedom Network and
scrolling to "S" for Society.
http://www.freetheworld.com/other.html On first impression the site may
appear amateurish. The English translation may materialized only partially.
However it provides a link to a very well done flash presentation.
http://www.isil.org/resources/introduction.swf
Q8- How did you interpret each of the four different hats ("officials with fine hats")?
The crown represents the
kings and the short time they ruled the people. The top hat represents the
presidents. I made a distinction between Abe Lincoln and our past/ present
presidents. The graduation hat represents the teachers and professors that have
helped to shape the citizens of today. The derby hat is a representation of the
average citizen.
Q9- How did you interpret the megaphone, baby, knife/gun ("No matter how
officials are selected")?
Officials are humans and they have no rights or no claims higher that
any other human, no matter their behavior or the number of people they have
supporting them. We all chose what we do with our lives and no one else’s. The
megaphone to me represents our voice and the ability to say what is on our
minds. The baby is a symbol of life and everyone has it, but what you do with
it is up to you and what you do with it. The knife and gun stand for murder and
is a result of choosing evil people to run and rule our government.
Q10- Browse the "Favorite Links" of the Economic Freedom Network http://www.freetheworld.com/other.html and share one of your favorite discoveries with us. Make sure you copy the url. Tell us why you chose it.
I chose,
http://www.cato.org/, this site provides many insight public policy debating
to allow consideration of the traditional American principles of limited
government, individual liberty, free markets and peace. The Institute strives to
achieve greater involvement of the intelligent, concerned lay public in
questions of policy and the proper role of government.
Q11- Once again go to
www.freetheworld.com and this time note the question asked near the top of
the page: "How much economic freedom exists in your country?" and randomly
choose five countries. List the name of each and their highest and lowest year
for economic freedom.
Albania:
Highest- 2003 (6.1) Lowest – 1990 (4.3)
Benin: Highest- 2001 (5.7) Lowest – 1995 (4.6)
Egypt: Highest- 2000 (6.7) Lowest – 1975 (4.3)
Bahamas: Highest- 1990 and 1975 (6.7) Lowest – 1990 (6.2)
Turkey: Highest- 2003 (5.9) Lowest – 1980 (3.7)
Q12- Which of your five countries had the greatest degree of economic freedom according to this exercise?
The country I chose that
had the greatest degree of economic freedom was the Bahamas.
Q13- What was the summary rating and rank in the year it achieved this degree of
economic freedom?
(You can find this information by clicking on the
Economic Freedom of the World: 2004 Annual Report and then choosing
Chapter 3 and scrolling to your chosen country.)
The summary rating was 6.4 (18) and it achieved its rank in 1980, the year it got economic freedom.