Newell-Fonda High School

Newell, Iowa

Teacher: Connie Doonan

Capitalism or Socialism

By Hali Johnson

12^th grade

The United States is a sovereign country where the power rests with the people.  But is the U.S. Capitalist or Socialist?  Socialism is an economic system in which the economic power is held by the central government.  The government controls prices, as-well-as the things that can be manufactured, sold in stores, and shipped abroad.  Capitalism is an economic system that is characterized by a free market economy.  Free market meaning that producing and selling of goods and services is controlled by corporations and privately owned businesses.  Because the U.S. is known throughout the world for its free market economy, it must be capitalist. 

The United States does have some socialistic qualities.  This does not make the country socialist.  Like a socialistic country, the United States does control imports by placing taxes on them.  This is not done to give the government more power; it is done to stimulate the economy.  The taxes help fund government programs.  Also, taxing imports encourages Americans to buy things made in the U.S., which in the long run creates more jobs for U.S. citizens.  This does not make the U.S. a socialist country, but uses socialism as a way to solve a problem.  Some say that the U.S. is now more socialistic than it has ever been.  They say our welfare system is unfair to the hardworking people in America today.  It does the exact same thing as socialism.  It provides people who do not work with basic necessities.  This shows Americans that they do not have to work because their government will “take care” of them.  This aggravates a lot of middle class families.  They work hard for their money so they can provide for their families, but then the government takes some money out of their paycheck and gives it to another family.  Some say that the U.S. medical system is becoming more socialized because the government provides Medicare and Medicaid to the elderly and needy.  This is not socialized medicine.  Canada has socialized medicine, which means that all people get their healthcare free.  In a way it could be said that the U.S. would better itself by becoming more socialistic when dealing with healthcare.

The United States government regulates for the good of its people, but it does not try to be in control.  The government sets regulations (such as minimum wage) to help the people who are trying to make an honest living.  Minimum wage is set so these people are not taken advantage of for the work that they do.  Some products are deemed illegal to produce and sell in the U.S., but again it is only to protect the people.  If the government did not control some aspects of the economy there would be chaos.  Too many unsafe products would be produced and sold.  By prohibiting some products, such as illegal drugs, the U.S. is protecting other parts of the economy and its people.  The government does not decide the price of products, nor does it limit how much of a certain product may be sold.  Prices of products are still set by private businesses and corporations.  Businesses still have to compete with one another for business.  The government does not say which companies stay and go, because in a capitalistic country the people’s choices are what influence business.

The Unites States couldn’t be socialistic because it “trades” with not only other countries but with other people from all over the world.  The government does not stop a company from shipping its products to an individual in China, nor does it prohibit an individual in the U.S. from receiving products from other countries.  Now-a-day the world participates in a free market economy.  It would be difficult for the most powerful country participating in this market to be socialist. The U.S. is capitalist above all, because it is free.  There are no socialistic countries that are free.  No socialist party representative has ever been elected president, which shows that the people of the U.S. do not want a socialistic leader.  Socialism would not go over well with American people only because they are accustomed to being free and having the right to choose.  America was built off freedom of choice and the capitalistic economy that goes along with it.  It would take a lot to influence Americans that their free will is not the best thing to be controlling them.

Capitalism is, and always has been, the economic system in America.  Although some people think the U.S. is becoming more of a socialistic country all the time, the U.S. remains capitalistic.  With its private businesses that participate in a free market economy the people will choose for the U.S. to remain capitalist.  Until the day the U.S. is no longer sovereign, it will be a capitalist nation.

Answers To Questions Prompted By The Required Reading

What does Mr. Reed mean when he says “Equal people are not free.”? If people are truly equal there is some bigger force making them be that way.  Free people will never be equal because they are free to make different choices.

That is the deadly trade-off to reliance upon government, according to Reed? Relying on the government equals not truly being free.  The fall of civilizations has happened because of the people reliance upon government.

Why did the Founding Fathers assure that the United States became a republic rather than a pure democracy? In a pure democracy there would be chaos.  Every little thing would require a vote.  Unknowledgeable people would be able to make huge decisions with their votes.

What is the saving grace of democracy according to Lawrence Reed?  Problems are sold using ballots, not violence in democracy.

Richard Haas gives two unusual reasons for advocating democracy.  What are they?  It discourages Terrorism and most mature democracies do not go to war with each other.

Give two reasons you personally would promote democracy. People in a democracy have a say (no matter how small it is) in the way the country is ran.  People have many freedoms they would not have in any other type of government.

Comment (any length) on President Bush’s current foreign policy. I do not agree with Bush’s foreign policy.  President Bush should get support from other countries and the United Nations before he jumps into things abroad.  I think that he should investigate his foreign affairs more and assume less.

How did you interpret each of the four different hats (“officials with hats”)? They hats represented a king, a graduate, an army official, and an average citizen.  They each represented some area of importance in society.

How did you interpret the megaphone, baby, knife/gun (“No matter how officials are selected”)? Megaphone represents power by campaigning.  The Baby represents power by inheritance.  The knife and gun represent power by force. 

Share one of your favorite discoveries. Economically free nations have an average life expectancy of 77.7, while the least free nations have an average life expectancy of 52.5.

How much economic freedom exists in 5 countries. List them and their highest and lowest year for economic freedom.

Which of the five countries had the greatest degree of economic freedom according to this exercise? The United States

What was the summary rating and rank in the year it achieved this degree of economic freedom? Its rating was 8.6.  It was ranked 2 out of 123.

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